Justia Trusts & Estates Opinion Summaries

This appeal stemmed from a family dispute concerning ownership interests in Nelsen Farms, LLC (“LLC”). The LLC, as originally established, included equal ownership for two of the Nelsen’s sons, Jack S. and Jonathan. However, in 2015, Jack H. Nelsen (“Jack H.”) and Joan Nelsen modified their estate plans and decided to pass their interests in the LLC to Jonathan via an inter vivos transfer, rather than through their wills. In August 2017, members of the LLC held a special meeting, during which the transfer of the membership interest to Jonathan was approved. The next month, Jack S., his wife and son, and Jack S.’s sister Janice Lehman, filed a complaint against Jack H., Joan and Jonathan alleging Jack H. and Joan were incompetent and lacked testamentary capacity to modify their 2015 wills and to make the 2017 inter vivos conveyance. Appellants also alleged Jonathan unduly influenced Jack H. and Joan to obtain the estate modification. Appellants amended their complaint in October 2017, adding a claim for dissolution of the LLC. The district court ultimately granted summary judgment to Respondents and dismissed all of Appellants’ claims. After review, the Idaho Supreme Court affirmed the district court in all respects save one: dissolution of the LLC. To this, the Court held that when the district court granted dissolution on summary judgment, Jack S. was ipso facto deprived of his membership interest and relegated to the status of economic interest holder, without the right to petition for dissolution since, under the statute, only members could do so. Jack S. was reinstated as a member of the LLC, and had the right to seek dissolution upon remand. View "Nelsen v. Nelsen" on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the county court approving the schedule of distribution for the estate of Blain Larson, holding that the court erred in charging inheritance tax to the estate.Cindy Svoboda, the personal representative of Blain's estate, filed a formal petition for complete settlement after an informal testate proceeding and schedule of distribution. The court dismissed Matthew's objection to Cindy's proposal for distribution and approved the distribution. The Supreme Court reversed in part, holding (1) the court erred in charging inheritance tax to the estate; and (2) this appeal was otherwise without merit. View "In re Estate of Larson" on Justia Law

The Supreme Court held that the Virginia Uniform Arbitration Act, Va. Code 8.01-581.01 to -.016 (VUAA), and the Federal Arbitration Act, 9 U.S.C. 1-16 (FAA), do not compel enforcement of an arbitration clause in a trust.The decedent created an inter vivos irrevocable trust that was divided into three shares for his children and grandchildren. The trust contained an unambiguous arbitration clause. Plaintiff filed a complaint against Defendant, the trust's trustee, alleging breach of duty. Defendant filed a motion to compel arbitration, which the circuit court denied. The Supreme Court affirmed, holding (1) a trust is neither a contract nor an agreement that can be enforced against a beneficiary; and (2) therefore, neither the VUAA nor the FAA compel arbitration. View "Boyle v. Anderson" on Justia Law

The Supreme Court affirmed the judgment of the superior court in this probate case involving an international will dispute impacting the probate of he estate of Matoula Papadopouli (the decedent), holding that the superior court did not err in affirming the order of probate court.The decedent held dual citizenship in the United States and Greece. The administratrix of the estate filed a miscellaneous petition requesting an order granting her full access to the estate's accounts in order to pay expenses related to a will contest in Greece. The probate court granted the motion. The superior court affirmed after applying Rhode Island law to the case, holding that Rhode Island law authorized the use of the estate's assets to fulfill the will contest in Greece. The Supreme Court affirmed, holding that the trial justice did not err in allowing the administratrix to use the estate's assets to fund the estate's defense to the Greek litigation. View "Smile of the Child v. Estate of Papadopouli" on Justia Law

The Supreme Judicial Court reversed the order of the trial judge denying Barbara Howard's motion to dismiss a petition seeking to partition two adjacent parcels of land in Foster that Howard Dunn and Howard owned as joint tenants with a right of survivorship, holding that Howard's motion to dismiss should have been granted.During the partition proceedings, Dunn died. Howard subsequently filed her motion to dismiss for lack of subject matter jurisdiction, asserting that Dunn's death vested full title in her as the surviving joint tenant. The trial judge denied the motion. The Supreme Judicial Court reversed, holding (1) the partition proceedings and the acceptance of a buyer's offer to purchase the property did not sever the joint tenancy or terminate Howard's right of survivorship; (2) Mass. Gen. Laws ch. 241, 26 does not confer standing on the heirs of a joint tenant to continue a partition action; and (3) where a party lacks standing under Mass. Gen. Laws ch. 241, 1, Mass. Gen. Laws ch. 241, 25 does not permit the land court to retain jurisdiction over the defective suit. View "Battle v. Howard" on Justia Law

The Louisiana Supreme Court granted certiorari in this case to address whether the law in effect at the time a testamentary trust came into existence allowed the settlor of the trust to provide for substitution of beneficiaries when the original beneficiary died testate, but without descendants. The Supreme Court concluded the law permitted such substitution. View "Succession of Dean Bradley" on Justia Law

Plaintiff Dejaun Kendrick, individually and on behalf of her minor son, sued the estate of the deceased, Anthony Michael Barre, seeking filiation and child support. The estate filed exceptions of prescription, no cause of action, and no right of action. The trial court granted the exceptions, but the court of appeal reversed. Finding an initial child support claim cannot be brought after the father’s death, the Louisiana Supreme Court reversed the court of appeal and reinstated the trial court’s ruling granting the exception of no cause of action. View "Kendrick v. Estate of Michael Barre, et al." on Justia Law

The Supreme Court held that the district court erred by disqualifying a district court judge because her impartiality could reasonably be questioned after she reviewed notes, produced in discovery, that the Supreme Court later determined to be privileged, holding that the district court erred by disqualifying Judge Sturman.Lawrence and Heidi Canarelli, along with attorney Edward Lubbers, served as former trustees of an irrevocable trust. Lubbers, who later became sole trustee, entered into a purchase agreement to sell the trust's ownership in the former trustees' business entities. Scott Canarelli petitioned to compel Lubbers to provide an accounting related to the purchase agreement. Lubbers died before Scott could depose Lubbers. Because the former trustees had disclosed documents containing Lubbers' notes, they attempted to claw back the documents. Judge Sturman allowed Scott to retain portions of the notes, but the Supreme Court held that the notes were privileged and undiscoverable. The former trustees moved to disqualify Judge Sturman as biased because she reviewed the privileged notes. The motion was denied. The Supreme Court granted writ relief, holding that the district court improperly disqualified Judge Sturman where the record did not show that Judge Sturman's review of the notes created bias or prejudice against the former trustees that would prevent fair judgment. View "Canarelli v. Eighth Judicial District Court" on Justia Law

The Supreme Court reversed in this interlocutory appeal of a decision of the circuit court overruling Appellants' demurrer and allowing Appellees to proceed with their claims, holding that the circuit court erred.Appellees brought this action against Margaret's Future Trust, the Estate of Walter, Jr. and another trust seeking an accounting of each party's assets, restitution, and the imposition of a constructive construct on the trusts' assets based on Walter, Jr.'s alleged fraudulent conduct and breach of fiduciary duty as trustee of Walter, Sr.'s and Margaret's estates. The circuit court subsequently allowed Appellees to amend their complaint to add claims relating to the arms-length sale by their mother, Margaret, of her minority interest in Hurley, LLC, in 2006 and to joint the relevant members of Hurley, LLC as defendants. In this interlocutory appeal, Appellants argued that the circuit court improperly conferred standing on Appellees to pursue claims challenging and seeking to "unwind" the 2006 Hurley Transaction. The Supreme Court reversed the circuit court's decision on these issues, dismissed Appellees' claims relating to the Hurley Transaction, and remanded for further proceedings, holding that Appellees lacked standing to bring the claims regarding the Hurley Transaction. View "Kittrell v. Fowler" on Justia Law

The Supreme Court affirmed the order of the district court granting summary judgment to Michael McDill on his request that the district court confirm that his brother, Thomas McDill, was excluded as a beneficiary under their deceased mother's trust and dismissing Thomas's counterclaims, holding that there was no error.Michael, as a trustee of the trust, filed a petition for instructions asking the district court to confirm that Thomas was disinherited from taking under the trust because he violated the trust's no-contest provision. In response, Thomas asserted various counterclaims and requested that Michael be removed as trustee. The district court granted summary judgment in favor of Michael, dismissed Thomas's counterclaims, and denied Thomas's motion to amend. The Supreme Court affirmed, holding that there was no error in the district court's judgment. View "McDill v. McDill" on Justia Law