Justia Trusts & Estates Opinion Summaries

Richard Muller filed a claim against the estate of John Weeder, deceased, under the Nebraska Probate Code. Muller’s claim was based on a modified judgment entered in his favor against Weeder in a separate fence dispute action before Weeder's death. The county court appointed Margene Cork as the personal representative of Weeder’s estate in October 2017. Muller filed a "Statement of Claim" in December 2017 and a "Petition for Allowance of Claim" in September 2023. Cork, as the personal representative, resisted the claim and moved to strike it. The county court held a hearing and allowed Muller’s claim against the estate.The county court for Boyd County granted Muller’s petition and allowed his claim. The Estate appealed the decision, arguing that the county court lacked jurisdiction and that the law-of-the-case doctrine should apply based on a prior appeal in the fence dispute action. The appeal was initially directed to the Nebraska Court of Appeals but was moved to the Nebraska Supreme Court.The Nebraska Supreme Court reviewed the case and determined that the county court had subject matter jurisdiction over Muller’s claim against the estate. The court noted that the county court has exclusive original jurisdiction over all matters relating to decedents’ estates. The court also rejected the Estate’s argument that the law-of-the-case doctrine applied, as the prior decision was made in a different action and not in the current probate case. The Supreme Court affirmed the county court’s judgment allowing Muller’s claim against the estate. View "In re Estate of Weeder" on Justia Law

Michael Jones purchased Series EE federal savings bonds during his marriage to Jeanine Jones, designating her as the pay-on-death beneficiary. Upon their divorce, their divorce settlement agreement (DSA) did not specifically address the savings bonds but included a provision that any marital asset not listed would belong to the party currently in possession. The DSA also required Michael to pay Jeanine $200,000 in installments. After Michael's death, Jeanine redeemed the savings bonds and filed a creditor’s claim against Michael’s Estate for the remaining $100,000 owed under the DSA. The Estate argued that the redemption of the savings bonds satisfied Michael’s financial obligations to Jeanine.The trial court agreed with the Estate, ruling that the savings bonds counted towards Michael’s $200,000 obligation under the DSA and dismissed Jeanine’s claim for reimbursement. Jeanine appealed, and the Appellate Division reversed the trial court’s decision. The appellate court held that the federal regulations governing U.S. savings bonds preempted state law, and Jeanine was the sole owner of the bonds at Michael’s death. Therefore, the value of the redeemed bonds should not be credited towards the Estate’s obligations under the DSA.The Supreme Court of New Jersey reviewed the case and held that preemption was not an issue because N.J.S.A. 3B:3-14 does not conflict with federal regulations governing U.S. savings bonds. The Court found that the DSA did not direct the disposition of the savings bonds, and thus, the bonds should not be credited against Michael’s $200,000 obligation. The Court affirmed the Appellate Division’s judgment as modified, ruling that the Estate must make the remaining payments to Jeanine as required by the DSA. View "In the Matter of the Estate of Jones" on Justia Law

Stephen Cook, a trustee of two charitable trusts, sued Preston Marshall, both personally and in his capacity as a trustee of a related trust, alleging that Preston's failures caused the charitable trusts to incur debt and tax penalties. The district court denied Preston's motion to dismiss and later granted Cook partial summary judgment. Preston appealed, arguing that the suit should be dismissed because Cook's unnamed co-trustees lacked diversity of citizenship.The United States District Court for the Eastern District of Louisiana initially ruled in Cook's favor, ordering Preston to authorize payments from the Peroxisome Trust to the Marshall Heritage Foundation and holding that Preston breached his fiduciary duties. Cook later moved to enforce this judgment, claiming Preston continued to refuse to authorize payments and failed to file tax returns. The district court held Preston in contempt but did not remove him as co-trustee. Cook then filed a new suit against Preston, seeking damages and Preston's removal as co-trustee. The district court denied Preston's motion to dismiss, which argued that the claims were barred by res judicata and that necessary parties were not joined.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court held that complete diversity of citizenship existed because the trusts themselves were not parties, and only the citizenship of Cook and Preston mattered. The court also found that the district court did not abuse its discretion in proceeding without joining Elaine and Pierce as parties. Additionally, the court determined that res judicata did not bar Cook's claims because the new claims arose from Preston's post-judgment conduct. Finally, the court rejected Preston's arguments regarding comparative fault and failure to mitigate damages, affirming the district court's judgment. View "Cook v. Marshall" on Justia Law

The case involves James B. Church & Associates, P.C. (the Church Firm), which served as legal counsel for Dennis Shogren, the personal representative of the estate of Loren R. Kirk, in a probate action. The estate beneficiaries, including Barbara Sagehorn and the Carter Beneficiaries, alleged that the Church Firm negligently failed to file a protective claim for a refund with the IRS or advise Shogren to do so. This failure purportedly resulted in the estate missing out on a potential $5,000,000 tax refund.The Superior Court of San Bernardino denied the Church Firm's special motion to strike the causes of action under the anti-SLAPP statute. The court found that the firm did not demonstrate that the causes of action arose from its constitutionally protected free speech or petitioning activities. The Church Firm appealed this decision.The Court of Appeal, Fourth Appellate District, Division One, State of California, reviewed the case. The court conducted an independent review and agreed with the lower court's ruling. It determined that the alleged acts forming the basis of the petitioners' causes of action—specifically, the Church Firm's failure to file a protective claim for a refund and failure to advise Shogren to file such a claim—were not protected activities under the anti-SLAPP statute. The court emphasized that the anti-SLAPP statute protects statements or writings made before or in connection with an issue under consideration by a judicial body, not failures to act or speak.Therefore, the Court of Appeal affirmed the order denying the anti-SLAPP motion, concluding that the Church Firm did not meet its burden of proving that the causes of action arose from protected conduct. View "Callister v. James B. Church & Associates" on Justia Law

Willie C. Scott signed a promissory note on May 22, 2018, promising to pay $67,000 to Jimmy C. Scott by March 24, 2020. The note detailed amounts borrowed on three separate dates. Willie passed away on November 20, 2019, and Jeanetta C. Scott, as administratrix of his estate, denied the allegations in Jimmy's complaint, asserting that Willie had fulfilled his obligations under the note.Jimmy filed a complaint in the Pike Circuit Court on October 13, 2021, seeking repayment. Jeanetta contested the claim, and the case was consolidated with another related to the administration of Willie's estate. Jimmy moved for summary judgment, supported by affidavits from himself and two witnesses who attested to witnessing Willie sign the note. Jeanetta opposed the motion, providing affidavits from herself and another individual, both asserting that the signature on the note was not Willie's.The Pike Circuit Court initially denied Jimmy's motion for summary judgment but later granted it after a renewed motion and hearing. Jeanetta's subsequent motion to set aside the summary judgment was denied, leading to this appeal.The Supreme Court of Alabama reviewed the case and found that the circuit court had improperly made credibility assessments in granting summary judgment. The court noted that there was a genuine issue of material fact regarding the authenticity of Willie's signature on the promissory note, which should be resolved by a jury. Consequently, the Supreme Court of Alabama reversed the circuit court's summary judgment in favor of Jimmy and remanded the case for further proceedings. View "Scott v. Scott" on Justia Law

Randall Moe executed a Last Will and Testament in 1989, shortly after ending a relationship with Cynthia Almer. The will included provisions to bequeath all his property to Almer, with a contingent bequest to his daughter, Amanda Miller, if Almer predeceased him. Moe also designated Almer as the guardian for Miller and the personal representative of his estate. Moe passed away in July 2022, and Miller was appointed as the personal representative of his estate. Almer later filed a petition for formal probate and to set aside Miller’s appointment, while Miller sought to reform the will to reflect Moe’s intent to pass his estate to her.The District Court of Williams County held a bench trial and found the will valid and enforceable but concluded it was affected by a mistake of law or fact. The court reformed the will to state that Almer would hold Moe’s property in trust for Miller if she was a minor at the time of his death, otherwise, the property would go to Miller outright. The court also appointed Miller as the personal representative of the estate.The Supreme Court of North Dakota reviewed the case and found that the district court erred in its findings. The Supreme Court concluded that the will was not inconsistent and that the extrinsic evidence considered by the district court did not relate to Moe’s intent at the time he executed the will. The Supreme Court held that the district court misapplied the law by considering post-execution evidence unrelated to Moe’s intent when he executed the will. Consequently, the Supreme Court reversed the district court’s judgment reforming Moe’s will. View "Estate of Moe" on Justia Law

The case involves the administration of the Charles and Patricia Masek Family Trust. Barry Masek, a contingent beneficiary and successor cotrustee, alleged that his siblings, Mark Masek and Dianne Yahiro, also contingent beneficiaries and successor cotrustees, breached the trust. Barry claimed that Mark and Dianne blocked access to their mother, Patricia Masek, the settlor, beneficiary, and trustee, and misused trust assets for their benefit. Patricia later died, and the county court entered a money judgment against Mark and Dianne in favor of Barry and overruled their motion for a new trial.Mark and Dianne appealed the denial of their motion for a new trial. The Nebraska Supreme Court reversed the county court's decision because it did not state the legal basis for finding Mark and Dianne liable for breach of trust. The case was remanded for further proceedings to determine their liability either as de facto trustees or by participating in a breach of trust committed by Patricia.On remand, the county court received additional evidence and determined that Mark and Dianne were liable to the trust by participating in or inducing Patricia to commit breaches of trust while she was in their care. The court issued a judgment against Mark and Dianne for $1,276,858, which included various expenditures from the trust assets. Mark and Dianne appealed again, and Barry cross-appealed.The Nebraska Supreme Court found that competent evidence supported the county court's findings for some, but not all, of the disputed expenditures. The court modified the judgment to $619,000, affirming it in favor of Barry in his capacity as cotrustee of the Charles and Patricia Masek Family Trust. The court also upheld the award of additional attorney fees to Barry. View "In re Masek Family Trust" on Justia Law

Chester “Chet” Lake contested the probate of his mother’s will, which his sister Mary Chesnutt had filed. Lake doubted the will’s validity, claiming undue influence, and requested a jury trial to determine the issue of devisavit vel non. The Madison County Chancery Court entered a scheduling order but did not specify whether the trial would be a bench or jury trial. After the discovery and motions deadlines passed, Lake filed a Notice of Jury Trial. Chesnutt moved to strike the notice, arguing that Lake had waived his right to a jury trial by participating in pretrial proceedings and that the notice was untimely.The Madison County Chancery Court granted Chesnutt’s motion to strike, finding that Lake had waived his right to a jury trial by agreeing to the scheduling order and that his notice was untimely. Lake appealed this decision.The Supreme Court of Mississippi reviewed the case and held that Lake had not waived his right to a jury trial. The court found that under Mississippi Code Section 91-7-19, Lake was entitled to a jury trial upon request before any hearing on the issue of devisavit vel non. The court determined that the entry of the scheduling order did not constitute a hearing on the matter and that Lake’s notice, filed thirty-two days before the trial date, was timely. The court reversed the chancery court’s decision and remanded the case for further proceedings consistent with its opinion. View "In the Matter of the Estate of Lake v. Chesnutt" on Justia Law

The case involves a dispute over a 1944 deed that placed a 330-acre parcel of land, known as Camp Bomazeen, in a charitable trust for use by the Boy Scouts of America for camping. Pine Tree Council, Inc., Boy Scouts of America (Pine Tree) appealed a summary judgment from the Superior Court (Kennebec County) against it on the Attorney General’s complaint for breach of trust and on Pine Tree’s counterclaims for declaratory judgment regarding its property rights in the land. Intervenors Bruce F. Rueger and Scott F. Adams, representing the Bomazeen Old Timers, cross-appealed, arguing the court erred in entering summary judgment against them on their claims against Pine Tree for breach of fiduciary duties and their request for the court to apply the cy pres doctrine.The Superior Court found in favor of the Attorney General, concluding that Pine Tree had only legal title to the property and not equitable title. The court determined that Pine Tree could sell Camp Bomazeen but must use the proceeds to support camping activities for Boy Scouts in central Maine, consistent with the trust’s purposes. The court also ruled against Pine Tree on its counterclaims and against the Old Timers on their claims.The Maine Supreme Judicial Court affirmed the Superior Court’s judgment. It held that Pine Tree succeeded only to legal title of the property and not to equitable title, meaning the trust did not terminate. The court also held that the proceeds from any sale of Camp Bomazeen must be used for the trust’s original purposes. The court found no basis for applying the cy pres doctrine, as the trust’s purposes could still be achieved. The judgment against Pine Tree and the Old Timers was affirmed. View "Attorney General v. Pine Tree Council, Inc., Boy Scouts of America" on Justia Law

Thomas Reich created a revocable trust in 2003, which was later amended in 2016. The trust provided specific cash gifts to his ex-wife, brother, and nephew, and the residue to his daughter Shannon or granddaughter Leah if Shannon predeceased him. Thomas also maintained an IRA, designating Shannon's and Leah's separate trusts as beneficiaries. Thomas married Pamela Reich in 2020 and died in 2021 without updating his trust to include her. Pamela sought an omitted spouse's share of Thomas's estate, including the IRA proceeds.The Superior Court of Los Angeles County initially overruled a demurrer by Shannon, ruling that IRA proceeds could sometimes be included in a decedent's estate. However, after a partial settlement excluding the IRA proceeds, Pamela filed new petitions regarding her entitlement to the IRA proceeds. The probate court dismissed these petitions, reasoning that the IRA proceeds were nonprobate assets and did not pass through Thomas's trust.The California Court of Appeal, Second Appellate District, reviewed the case. The court held that the IRA proceeds were not part of Thomas's estate for calculating Pamela's omitted spouse's share because IRAs are nonprobate assets. The court noted that the IRA proceeds were designated to pass directly to the separate trusts for Shannon and Leah, not through Thomas's trust. The court affirmed the probate court's orders, concluding that the IRA proceeds were correctly excluded from Pamela's omitted spouse's share. View "Reich v. Reich" on Justia Law