Justia Trusts & Estates Opinion Summaries

Decedent established a Trust that required, upon Decedent’s death, the trustee to distribute a parcel of land to the trustee and to distribute the remainder of the land to Decedent’s children. The Trust filed a complaint for eviction for unlawfully holding over after the termination of tenancy against Defendants, Decedent’s children. The district court entered judgment in favor of the Trust. Defendants appealed, arguing that the Trust was not a landlord and Defendants were not tenants, but rather, tenants in common with the trustee. Therefore, Defendants argued, an action for eviction could not lie. The superior court granted Defendants’ motion to dismiss, concluding that the court lacked subject matter jurisdiction and that the Trust lacked standing. The Supreme Court vacated the judgment of the superior court, holding that the superior court did have jurisdiction over trespass and ejectment matters, and therefore, the motion justice erred in dismissing the case for lack of subject matter jurisdiction. Remanded for an evidentiary hearing with respect to the issue of standing.View "Joseph P. Notarianni Revocable Trust v. Notarianni" on Justia Law

Michael Weatherbee brought litigation to recover money misappropriated by his sister, Peggy McPike, while she was handling their parents’ money before their deaths. The superior court entered judgment in favor of the parents’ estates in the amount of $92,400 in restitution. The probate court subsequently directed that Weatherbee be compensated of the estates for attorney fees and expenses. McPike appealed, claiming, among other things, that the probate court erred in applying the common fund doctrine to require that attorney fees be paid by the estates. The Supreme Court vacated the judgment, holding that neither the common fund doctrine nor the Probate Code nor any other equitable exception to the American Rule provided a basis for the award of attorney fees out of the estates.View "In re Estate of Weatherbee" on Justia Law

After Decedent died in 2012, Ryan Gray was appointed as personal representative of Decedent’s estate. The final value of the estate was more than $5 million. When filing a petition for formal probate of the will, Gray submitted a request for a personal representative fee in the amount of two and a half percent of the estate. Five heirs of the estate objected to the request as excessive and unwarranted. The county court determined that Gray was entitled to a fee of $25,000 and overruled Gray’s motion to reconsider the fee. The Supreme Court affirmed the award of a personal representative fee of $25,000, holding that the award was neither contrary to the law nor arbitrary, capricious, or unreasonable.View "In re Estate of Gsantner" on Justia Law

In 1991, Husband and Wife were married in Florida. Later that year, the couple signed a postnuptial agreement expressly providing that Florida law would apply. The agreement contained a provision stating that Wife waived all claims against Husband’s estate upon his death, including her elective share. In 2005, the couple moved to Iowa. After Husband died in 2012, Wife claimed her spousal elective share under Iowa law. The agreement was enforceable under Florida law, but Wife argued that the agreement could not be enforced in Iowa because it would violate Iowa’s public policy against postnuptial agreements waiving a spouse’s elective share. The district court denied relief based on the choice of law provision in the agreement. The Supreme Court affirmed, holding that Florida law applied to the enforceability of Wife’s waiver of her spousal elective share contained in the agreement.View "Hussemann v. Hussemann " on Justia Law

After Decedent died in 2010, Appellee, Decedent’s wife, filed a complaint seeking to have a Will and Trust Decedent executed in 2009 set aside on grounds of incapacity and undue influence, or alternatively, to elect to take against the Will. The circuit court concluded (1) Appellee’s election take against the Will of Decedent was valid; and (2) Decedent’s intent in creating the Trust was to deprive Appellee of her elective share in his Estate, and therefore, the Trust assets would be included as part of the Estate for the limited purpose of calculating Appellee’s elective share. The Supreme Court affirmed, holding that the circuit court did not err in (1) including the assets of the Trust in Decedent’s estate; (2) finding that Decedent intended to defraud Appellee of her statutory rights to his property; and (3) finding that when a settlor creates an inter vivos revocable trust with the intent to deprive his or her surviving spouse of marital rights to property, then the trust assets will be included in the settlor probate estate for the limited purpose of calculating the elective share.View "In re Estate of Thompson" on Justia Law

In 2008, twenty-two days before his death, Decedent amended his 2007 Living Trust. Petitioner, Decedent’s daughter, filed a complaint for inspection of records questioning the validity of the 2008 Living Trust. Petitioner subsequently requested access to a copy of the 2007 Living Trust. The trial court denied the request, finding that the unamended trust was subject to the attorney-client privilege. Thereafter, trial court found that the revisions to Decedent’s 2007 Living Trust were fair and reasonable. The court of special appeals affirmed. The Court of Appeals affirmed, holding that the trial court erred by failing to require that Decedent’s attorney produce the 2007 Living Trust pursuant to the testamentary exception to the attorney-client privilege, but the error was harmless.View "Zook v. Pesce" on Justia Law

Trusts established by James Cartwright before his death have resulted in litigation in several jurisdictions involving his adopted children and others. The cases involve spendthrift trusts, Crummey Trusts, limited partnerships, and other entities, and tort claims of conversion, conspiracy, self-dealing, and manipulation of trust fund assets. The federal district court held that it lacked jurisdiction, reasoning that both state and federal court actions alleged claims involving administration of the trusts and were quasi in rem and that the Tennessee state court first asserted jurisdiction over the property at issue. The Sixth Circuit affirmed.View "Cartwright v. Garner" on Justia Law

The Estate of Steven Gavin filed a wrongful death action against the Commonwealth and Tewksbury State Hospital under the Massachusetts Tort Claims Act, alleging that Gavin’s death was caused by the negligence of hospital staff members. The presentment of the claim was made by the Estate, through its attorney, and not by the executor or administrator of the Estate. The superior court allowed Defendants’ motion to dismiss, concluding that the statutory requirements for presentment of a claim under the Act were not met in this case. The Supreme Judicial Court vacated the judgment of the superior court, holding that, under the circumstances of this case, the presentment made by the Estate, before the appointment of an executor or administrator, was proper. Remanded.View "Estate of Gavin v. Tewksbury State Hosp." on Justia Law

Sir John Thouron died in 2007 at the age of 99, leaving a substantial estate. Thouron’s grandchildren are his only heirs. His named executor retained Smith, an experienced tax attorney. The Estate’s tax return and payment were due November 6, 2007. On that date, the Estate requested an extension of time and made a payment of $6.5 million, much less than it would ultimately owe. The Estate timely filed its return in May 2008 and requested an extension of time to pay. It made no election to defer taxes under 26 U.S.C. 6166, it had conclusively determined it did not qualify. The provision allows qualifying estates to elect to pay tax liability in installments over several years. The IRS denied as untimely the Estate’s request for an extension and notified the Estate that it was imposing a failure-to-pay penalty. The Estate unsuccessfully appealed administratively. The Estate then filed an appropriate form and paid all outstanding amounts, including a penalty of $999,072, plus accrued interest, then filed a request with the IRS for a refund. After not receiving a response from the IRS, the Estate filed a complaint, alleging that its failure to pay resulted from reasonable cause, reliance on Smith’s advice, and not willful neglect and was not subject to penalty. The district court granted the government summary judgment, holding that under Supreme Court precedent the Estate could not show reasonable cause. The Third Circuit vacated, reasoning that the precedent did not apply to reliance on expert advice.View "Estate of Thouron v. United States" on Justia Law

Charles Kemp attempted suicide while in administrative segregation at the Anchorage Correctional Complex. He survived but suffered a serious brain injury. His mother, Marjorie Achman, sued the Alaska Department of Corrections (DOC), alleging both a negligent failure to protect Kemp from self-harm and medical malpractice. The superior court granted summary judgment to DOC and awarded attorney’s fees to DOC as the prevailing party. Achman appealed that decision. Finding no reversible error, the Supreme Court affirmed.View "Achman v. Alaska" on Justia Law