Justia Trusts & Estates Opinion Summaries

The First Circuit affirmed the judgment of the district court concluding that this dispute concerning the disposition of assets once held by the uncle of the parties in this case belonged in a state court, not in a federal court, holding that the district court did not err.Plaintiff Sandra Lerner and her cousin, Defendant Stephen Colman, were both citizens of the Commonwealth of Massachusetts. Plaintiff attempted to plead claims under the federal Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962, 1964(c), and appended state law claims for fraud and breach of fiduciary duty. The district court concluded that the complaint did not adequately state a cause of action under RICO and then dismissed the state law claims without prejudice to their being refiled in state court. The First Circuit affirmed, holding that the RICO claim failed because Plaintiff did not allege a pattern of racketeering activity. View "Lerner v. Colman" on Justia Law

The Supreme Court affirmed the judgment of the appellate court affirming the trial court's determination that Susan D. Elia could not create an irrevocable trust on her own behalf while she was under a voluntary conservatorship, holding that there was no error.In 2011, the probate court granted Elia's application for voluntary representation by Renee Seblatnigg as the conservator of Elia's estate. Elia subsequently created an irrevocable trust and arranged for the transfer of assets to it. In 2014, Margaret Day, acting in her capacity as coconservator of Elia's estate, brought this action seeking a judgment that the trust was void ab initio because Seblatnigg, acting in her capacity as Elia's conservator, did not create and fund the trust with the approval of the probate court under R.I. Gen. Stat. 45a-655. The trial court granted summary judgment for Day, and the appellate court affirmed. The Supreme Court affirmed, holding that the appellate court correctly determined that Elia lacked the legal authority to establish the irrevocable trust and, consequently, that the trust was void ab initio. View "Day v. Seblatnigg" on Justia Law

The Supreme Court reversed the order of the circuit court denying a petition seeking the appointment of a special administrator to pursue a wrongful death claim for Dale Dean Jones's estate, holding that the court abused its discretion by failing to address certain discovery motions before deciding the petition for special administrator.After Dale died intestate, the circuit court appointed Dale's wife, Lisa Jones, as his estate's personal representative. Douglas Jones and Jessica Jones, Dale's adult children, subsequently petitioned for the appointment of a special administrator to pursue a wrongful death claim for Dale's estate and further served discovery requests on Lisa seeking information pertaining to their petition. The court denied the petition for special administrator and determined that the discovery issues were moot. The Supreme Court reversed, holding that the circuit court denied Doug and Jessica the opportunity to develop and present evidence that may be relevant to their petition. View "In re Estate of Jones" on Justia Law

The Supreme Court affirmed the decision of the trial court affirming the judgment of the probate court that Peter Ziegler's Yellow Submarine Trust was a permissible appointee, holding that an unfunded charitable trust is a permissible appointee of the exercise of a nongeneral testamentary power of appointment.In 2015, Peter, a member of a wealthy Connecticut family, suffered an accident rendering him a quadriplegic. One year later, Peter executed a trust instrument to create his Yellow Submarine Trust, which was not funded during Peter's lifetime. Peter, who had nongeneral testamentary powers of appointment under various family trusts, did exercise his powers of appointment in his will to direct the proceeds of the sale of stock in his family's corporation to his Yellow Submarine Trust. Peter's sister argued that the trust was an impermissible appointee because it was unfunded during Peter's lifetime. The probate court disagreed, and the trial court affirmed. The Supreme Court affirmed, holding that Peter's Yellow Submarine Trust was a permissible appointee even though it was not funded prior to Peter's death. View "Benjamin v. Corasaniti" on Justia Law

Plaintiff-respondent Keely Rickard purchased the subject residential real property from the Coulimore Family Living Trust, U/A/D March 6, 2014 ("the Coulimore Trust"). Rickard later sued Defendants-petitioners Jonathan Coulimore and Elinor Coulimore, individually, and as Trustees of the Coulimore Trust, for damages from defects they failed to disclose. The Oklahoma Supreme Court granted certiorari to review a certified interlocutory order to determine whether the transaction was exempt from the Residential Property Condition Disclosure Act (RPCDA). The Court found the transaction was a transfer by a fiduciary who was not an owner occupant of the subject property in the course of the administration of a trust and, pursuant to 60 O.S.2011 section 838(A)(3), the transaction was exempt from the RPCDA. The Court therefore affirmed partial summary judgment as to the inapplicability of the RPCDA and remanded for further proceedings. View "Rickard v. Coulimore" on Justia Law

David Miles appealed a circuit court order denying his postjudgment motion seeking to alter, amend, or vacate a judgment appointing a guardian for Nadine Chalmers. The administration of the guardianship was purportedly removed to the circuit court from probate court. The Alabama Supreme Court determined the removal was not proper under section 26-2-2, Ala. Code 1975, and thus, the circuit court never acquired subject-matter jurisdiction. The Court therefore dismissed the appeal. View "Miles v. Helms" on Justia Law

The Supreme Court affirmed the judgment of the superior court affirming an order of the probate court admitting the last will and testament of Barbara J. Cardiff, holding that the trial justice did not err in affirming the probate court because the will met the necessary formalities of R.I. Gen. Laws 33-5-5.Before the superior court, Petitioners argued that the will did not conform with the requirements of section 33-5-5 because it was not subscribed by two witnesses, but rather, a witness and a notary public. The trial justice determined that the will was signed by two witness, thus affirming the probate court's order admitting the will to probate. The Supreme Court affirmed, holding that the trial court did not err as to any of the issues raised by Petitioners. View "In re Estate of Barbara J. Cardiff" on Justia Law

In 2018, five of the late Richard Redd’s six children (Petitioners) sought the appointment of a conservator and guardian over their mother, Joyce Redd. They also sought various temporary, preliminary, and permanent injunctions to prevent Joyce from taking further financial action without their approval. Petitioners claimed their brother, Brian Redd, unduly coerced Joyce into financial decisions detrimental to her estate. Joyce filed a motion for summary judgment as to the conservatorship issue, which the chancery court granted. The chancellor found Petitioners failed to produce certificates from at least two examining physicians stating that Joyce was unable to manage her own personal and financial affairs. Regions Bank, as the trustee of the trusts at issue, moved for mediation regarding the remaining issues. The chancellor granted Regions’ motion and, after mediation, the parties settled the case. Disagreements later arose regarding the terms of the settlement, which the chancery court resolved in favor of Petitioners. Both Joyce and Petitioners appealed the final judgment. Finding no reversible error, the Mississippi Supreme Court affirmed the final judgment. View "In the Matter of the Conservatorship of Joyce G. Redd" on Justia Law

This appeal arose from the dismissal with prejudice of Marilyn Newsome’s breach of contract claim against Peoples Bancshares, Inc., d/b/a Peoples Bank. The trial court found that the Bank reasonably relied on Keely McNulty’s apparent authority as Marilyn’s agent when issuing court-ordered cashier’s checks from Victoria Newsome’s conservatorship account without Marilyn’s approval or signature as the account holder. Marilyn appealed. Because the Mississippi Supreme Court concluded the chancellor was not with reasonable certainty manifestly wrong or clearly erroneous, and because substantial evidence supported the chancellor’s findings that McNulty possessed apparent authority, it affirmed the trial court’s dismissal of Marilyn’s claims against the Bank. View "Newsome v. Peoples Bancshares, Inc. d/b/a Peoples Bank" on Justia Law

The Medi-Cal program, California’s enactment of the federal Medicaid program, was administered by the California Department of Health Care Services (the department) administers the Medi-Cal program. In this case, the department sought reimbursement from a revocable inter vivos trust for the Medi-Cal benefits provided on behalf of Joseph Snukst during his lifetime. Following his death, the probate court ordered the assets in the revocable inter vivos trust to be distributed to the sole beneficiary, Shawna Snukst, rather than to the department. The Court of Appeal concluded federal and state law governing revocable inter vivos trusts, as well as public policy, required that the department be reimbursed from the trust before any distribution to its beneficiary. Judgment was therefore reversed and remanded. View "Riverside County Public Guardian v. Snukst" on Justia Law