Understanding Estate, Trust, Probate And Inheritance Litigation In Terms Of "Pie"

I love pie, and it's probably my favorite type of dessert.  I have fond childhood memories of my Grandmother making fantastic butterscotch meringue pies whenever we would travel to her house back when I grew up in Oklahoma.  Every Fall I look forward to eating pecan pie, and I can cook a pretty good one using a recipe and method that I read about in Southern Living magazine many years ago.  In my opinion, cakes, cookies and other desserts pale in comparison to a big slice of pie accompanied by a big scoop of Blue Bell ice cream (or Arkansas-based Yarnell's).  

That said, I find that when talking to clients it is often helpful to explain estate, trust, probate and inheritance litigation and disputes  in terms of "pie."  For example, sometimes the question is "who gets a piece of the pie?"  There could be a conflict   about who the beneficiaries are in a will or trust.  Or, if there was not a will or trust a Court could need to determine who the deceased's heirs are for purposes of intestate succession.  If a will or trust sought to exclude someone and they challenge it, the enforcement or non-enforcement of that term could dictate whether or not they get a piece of the pie at all.

Sometimes the issue revolves around "how big a slice does everyone get?"  For example, a will or trust often leaves different types or percentages of property to different people or entities.  In an intestate estate where the deceased did not leave a will or trust (or perhaps those documents were found to be invalid), one's status as a surviving spouse, surviving child, surviving parent, surviving sibling, surviving grandchild, etc. will determine the size and extent of one's piece of the pie.

Other times the question involves "what is even in the pie?"  What I mean by  that is that property formally conveyed to a trust should pass through the trust, but property not conveyed to that trust will pass outside the trust (typically through the estate).  Likewise, whether or not an estate is formally opened or a trust even exists, some property can automatically pass by beneficiary designations (IRA's, life insurance, etc.) or operation of law (transfer on death accounts, joint tenants with right of   survivorship accounts, etc.) instead of passing to or through a trust, estate, etc.  

Finally, occasionally the concern focuses upon "whether anyone ate some (or all) of the pie before it got sliced  up?"  In other words, if there was a misappropriation of monies or assets the dispute may necessarily be primarily concerned with (1) attempting to investigate, locate and recover the missing property, and (2) holding whomever took it civilly or criminally responsible, if appropriate.  

Matt House can be contacted by telephone at 501-372-6555, by e-mail at mhouse@jamesandhouse.com, by facsimile at 501-372-6333, or by regular mail at James, House & Downing, P.A., Post Office Box 3585, Little Rock, Arkansas 72203.

Court Rules Handwritten Note Found By Deceased's Mother Did Not Result In Change Of IRA Beneficiary

As previously discussed on this Blog, a common fact scenario in estate, trust and probate lawsuits involves an eleventh-hour change in a dying person's final wishes regarding their property.  Quite often the last-minute decision appears legitimate, although occasionally there is an aura of suspicious facts and circumstances surrounding the event which arises to the level of an "inheritance theft."  Frequently the change in question is expressed in the form of a handwritten note, and courts are commonly called upon to rule whether or not such "wishes" will actually be  enforced.

On January 27, 2010, the Arkansas Court of Appeals addressed a somewhat similar situation in the case of Nunneman v. Estate of Donald T. Grubbs, et al, Case No. 2010 Ark.App. 75.  Specifically, Mr. Grubbs had named Ms. Nunnenman as beneficiary of his IRA, and a few days before his death evidently called a lawyer to his hospital bed and executed a will, leaving all of his property to his mother, Ms. Grubbs.  She then asked the Court to freeze certain IRA monies contending that she had discovered a 2005 note in Mr. Grubbs' bible which stated:  "My Will.  I Donnie Grubbs want all of my estate All IRA and any SBC Telco and all other assets and worldly goods to go to my Mother Shervena Grubbs.  Being of sound mind.  Donnie Grubbs."  Ms. Grubbs alleged that she had found the note in the presence of a coworker, but that witness claimed that she had not known of the note's existence before the trial. 

After considering the evidence, the trial court ruled that the handwritten note should have the effect of changing the IRA beneficiary.  Ms. Nunnenman appealed and the Arkansas Court of Appeals reversed the trial court, ruling that it was clear error to find an effective change of the IRA beneficiary.  Specifically, the Court pointed to the conflicts in the testimony regarding the discovery of the note and also focused upon the fact that the very person who discovered the note was the same person who would end up benefitting from its discovery.  The Court also opined that it was significant that while Mr. Grubbs had undertaken steps to call a lawyer to come to his bedside, he had not taken similar measures to change his IRA beneficiary. 

In sum, this case is a good example of the heavy burden that a party has when attempting to prove a change in property disposition by means of a handwritten document.  As a general matter the Court will need to be presented with a strong showing of evidence before favorably considering such a request.