Justia Trusts & Estates Opinion Summaries

Thomas Martin ("Thomas") appealed a circuit court judgment dismissing his declaratory-judgment action for lack of subject-matter jurisdiction. Henry Thomas Martin ("Henry") died and was survived by his wife, Sheila Martin ("Sheila"), and his two children, Thomas and Dawn Michelle Martin ("Dawn"). Among other dispositions, Henry's will created a testamentary trust for the benefit of Dawn ("the testamentary trust"). The will directed the trustee to hold 25% of Henry's residuary estate in trust and to pay Dawn, in estimated equal monthly installments, the net income from the trust along with any surplus net incomes. Following Henry's death, Dawn died without a will. Henry's will was silent, however, about what happened to the principal of the testamentary trust upon Dawn's death. While the probate court proceedings were pending, Thomas filed a complaint at circuit court seeking a judgment to declare: (1) his interest in reversions held by Henry's heirs; (2) the proper distribution of any property held in such an reversionary trust; and (3) the various rights of the parties to Henry's assets at the time of Henry's death. Shiela, as personal representative to the estate, moved to dismiss Thomas' suit, arguing the circuit court lacked subject-matter jurisdiction. The Alabama Supreme Court reversed the circuit court, finding that although certain probate courts in Alabama were vested with jurisdiction to hear cases involving testamentary tryst, the probate court in this case was not one of them. As a result, only the circuit court held subject-matter jurisdiction to consider arguments about whether the testamentary trust continues or has terminated. View "Martin v. Martin" on Justia Law

Eleanor Williams appealed a probate court order denying her request for redemption of certain real property. In 2003, the State purchased property located in Birmingham ("the property") at a tax sale after the then owners, Benjamin and Marzella Rosser, failed to pay ad valorem taxes. The State sold the property in 2016 for $1,000 to Waynew Global Holdings, LLC ("WGH"). In February 2017, WGH sold the property to Mari Properties, LLC ("Mari"), for $5,000, and Mari recorded the deed to the property. Williams claimed that she inherited the property from the Rossers in or around March 2003. In September 2017, Williams petitioned for redemption of the property under section 40-10-120, Ala. Code 1975, with which she tendered $1,100. The probate court granted Williams petition, thereby ordering Mari to compute and submit the amount of those items and stated that, upon receipt of those figures, the probate court would enter an amendment to the order and direct payment by Williams. The probate court did not vest title of the property in Williams. Mari, however, moved to vacate the probate's order, arguing the court lacked subject-matter jurisdiction over the redemption petition because, it argued, Williams was required under 40-10-120 to redeem the property through statutory redemption within three years of the May 13, 2003, tax sale. Mari contended in the motion that the only redemption process available to Williams was judicial redemption under section 40-10-83, Ala. Code 1975, and that the circuit court had exclusive jurisdiction over that process. Despite Mari's filing of the notice of appeal to the circuit court, the parties continued filing documents in the probate court. By March 6, 2020, the probate court reversed course, vacating its earlier judgment in favor of Williams for redemption under 40-10-120, and holding that Williams should have filed her redemption petition with the circuit court. The Alabama Supreme Court determined that once Mari appealed to the circuit court, the probate court's jurisdiction was divested, making all orders filed after Mari's circuit court suit void. View "Williams v. Mari Properties, LLC" on Justia Law

The Supreme Court reversed the judgment of the court of appeals concluding that Ohio Rev. Code 2107.24 eliminates the requirement of witness competency and that, therefore, the voiding provision of Ohio Rev. Code 2107.15 does not apply to essential witnesses to a remediated will, holding that the voiding provision of section 2107.15 applies equally to essential witnesses to both formally compliant and remediated wills.Zachary Norman, the son of Juley Norman, filed an application to probate a 2006 document claiming to be a will that was handwritten and signed by Joseph Shaffer. The will had no witness signatures. The probate court denied the application. On appeal, Zachary argued that Ohio Rev. Code 2107.24 does not require the witnesses to a noncompliant will to be "competent witnesses," and therefore, the voiding provision of section 2107.15 did not apply to a purported will that may be remediated pursuant to section 2107.24. The court of appeals agreed and reversed. The Supreme Court reversed, holding (1) section 2107.15 applies both to wills executed in compliance with section 2107.03 and those submitted pursuant to section 2107.24; and (2) the probate court correctly applied section 2107.15 and determined that Juley could not be included in the list of beneficiaries of Shaffer's estate. View "In re Estate of Shaffer" on Justia Law

The Supreme Judicial Court affirmed the business and consumer docket's entry of final judgment reaffirming a partial summary judgment on the complaint filed by Michael Zelman and a counterclaim filed by Andrew and Zelman Family Business Holdings, LLC (ZFBH), holding that the business and consumer court had subject matter jurisdiction.Michael brought this action both individually and as personal representative of the Estate of Estelle Betty Zelman asking the superior court to dissolve and liquidate ZFBH. Andrew and ZFBH filed an answer and counterclaim. The court entered a final judgment concluding that Andrew was not a manager of ZFBH and that the sole remaining manager of ZFBH had died and declining to dissolve ZFBH. The Supreme Judicial Court affirmed, holding (1) the business and consumer court had subject matter jurisdiction and personal jurisdiction; and (2) the court correctly concluded that William did not have the authority to appoint Andrew as a manager of ZFBH. View "Zelman v. Zelman" on Justia Law

In this proceeding brought by the daughters of Gale Marsh to determine the amount of inheritance tax due, the Supreme Court affirmed the county court's determination of the ownership interest of Marsh's revocable trust in a limited liability company valued at more than $12 million, holding that the court did not err in determining that assignments signed by Marsh rather than the trustees were valid.Specifically, the Supreme Court held (1) published notice of the evidentiary hearing was not a prerequisite of the County court's subject matter jurisdiction, and even if notice was not published, the County did not suffer prejudice; (2) the county court did not abuse its discretion in overruling the County's motion for a continuance; and (3) the court's determination that ownership interests were validly transferred from the trust conformed to the law, was supported by competent evidence, and was neither arbitrary, capricious, nor unreasonable. View "In re Estate of Marsh" on Justia Law

M&M Realty entered into a contract with the William Mazzoni Trust in 2011 for the purchase of a plot of land in Boynton Beach, Florida. M&M subsequently filed suit seeking specific performance of the land sale contract and damages from the Mazzoni Trust, as well as damages from William Mazzoni, as co-trustee and agent of the Trust, for tortious interference with the land sale contract.The Eleventh Circuit held that M&M failed to make out a prima facie claim for specific performance or for damages for breach of contract because M&M did not provide evidence that it was ready, willing, and able to perform under the contract -- specifically, that it had the necessary funds to make the purchase. The court also held that William Mazzoni, as a co-trustee of the Defendant trust and signatory as its agent on the contract, is not liable for tortious interference. Accordingly, the court affirmed the district court's judgment granting summary judgment in favor of William Mazzoni and the Mazzoni Trust. View "M & M Realty Partners at Hagen Ranch, LLC v. Mazzoni" on Justia Law

In this matter arising from the district court's distribution of Lanny Lentz's estate among his three daughters the Supreme Court remanded the judgment of the court of appeals holding that it lacked jurisdiction over this appeal because Appellant's posttrial motions did not toll the time for her to appeal, holding that the court of appeals did in fact have jurisdiction over the appeal.Appellant, one of Lentz's daughters, filed a petition to set aside and/or reconsider the final settlement and, simultaneously, an objection to discharge of executrix and petition to disgorge fees for administration paid to the fiduciary. The district court denied the motions. Appellant appealed, claiming that the property values for properties in the final settlement were not supported by substantial competent evidence. The court of appeals dismissed the appeal for lack of jurisdiction. The Supreme Court remanded the case for consideration of the appeal on the merits, holding that Appellant's notice of appeal was timely and that the court of appeals had jurisdiction over the appeal. View "In re Estate of Lentz" on Justia Law

The Supreme Court affirmed the judgment of the circuit court sustaining Defendant's demurrer to Plaintiffs' suit, holding that "fair market value" on a specified date, without more specificity, was not a sufficiently certain price term to allow a court to compel specific performance of a contract regarding the purchase of real estate.The decedent executed a will wherein she devised property to Plaintiffs, her three daughters. In the same will, the decedent granted her son, Defendant, an option to purchase the property from his sisters. The decedent then executed a codicil to her will revising the purchase price for the option to "an amount equal to the fair market value at the time of my death." In their complaint, Plaintiffs sought specific performance of a contract for the purchase of real estate. The circuit court dismissed the case with prejudice, holding that there was no enforceable contract because the will and codicil did not determine the purchase price and did not provide a method of determining the purchase price. The Supreme Court affirmed, holding that the term "fair market value," as set forth in the codicil, did not provide a price for the property, nor did it provide a mode for ascertaining the price with sufficient certainty. View "Wilburn v. Mangano" on Justia Law

The trustees of the Amen Family 1990 Revocable Trust challenge the Assessor's reassessment of property the Trust received from a corporation that the Trust had partially owned. Although there were at least five owners of the stock of the transferor corporation (including the Trust) and the transferee was solely the Trust, the Trust contends that the proportional ownership interest exception applied because it had owned all the voting stock in the corporation.The Court of Appeal affirmed the trial court's judgment in favor of the Assessor and upholding the reassessment. The Assessor argues that "stock" in Revenue & Taxation Code section 62(a)(2) means exactly what it says—stock—and applies to all classes of stock, including for present purposes both voting and non-voting stock. Under this interpretation, the Assessor was right to reassess the property after the transfer because the proportional ownership interests, as measured by all the stock of the transferor corporation, had changed. Finally, the "Primary Economic Value" test in section 60 also supports that all stock is considered in applying section 62(a)(2). View "Prang v. Amen" on Justia Law

Margaret Stockham, as personal representative of the estate of Herbert Stockham, deceased ("Stockham"), appealed a circuit court judgment denying her motion for reimbursement for costs and attorney fees. The costs and fees at issue in this appeal related to a lawsuit brought by a beneficiary of three trusts that each held preferred and common stock in SVI Corporation, on whose board of directors Stockham served. Judgment was entered in favor of Stockham and other defendants. Stockham filed a motion for reimbursement of fees and expenses for defense of the beneficiary's action against Herbert Stockham. The Alabama Supreme Court determined the circuit court erred indenting Stockham's motion for reimbursement of costs and attorney fees based on the beneficiary's newly-revised argument Herbert had willfully and wantonly committed material breaches of the trusts. Accordingly, the Court reversed the circuit court's judgment and remanded this case for the circuit court to reconsider Stockham's motion for reimbursement without consideration of the beneficiary's newly raised arguments. View "Stockham v. Ladd" on Justia Law