In re Estate of Karmazin
299 Neb. 315
| Neb. | 2018Background
- Bernadine Karmazin (decedent) held life estates in several parcels and in 2014 leased some parcels to remainderman Kenneth Karmazin for a 1-year term (Nov 1, 2014–Oct 31, 2015) with clause: “Real Estate Taxes will be paid by [decedent].”
- Decedent died Aug 23, 2015; informal probate notices published with a claims bar date of Dec 15, 2015; the estate did not mail the notice to the remaindermen.
- Remaindermen (Denise Baumgart and Kenneth) submitted an April 11, 2016 application seeking determination of the estate’s liability for 2015 real estate taxes; amended July 28, 2016 to add Kenneth and rent claim; estate disallowed claims and objected.
- County court allowed remaindermen’s tax claims, finding the leases ambiguous and ordering the estate to reimburse 2015 taxes; it barred Kenneth’s rent claim as untimely.
- On appeal, Nebraska Supreme Court affirmed in part, reversed in part: it held the rent claim was properly barred, the remaindermen owned the property on Dec 31, 2015 so were liable for 2015 taxes, and the lease did not reasonably obligate the decedent to pay taxes that became due after the lease term ended.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to bring claims | Remaindermen: as purported creditors they may present claims against the estate | Estate: claimants lacked proof of ownership so lack standing | Court: standing existed because probate code gives standing to purported creditors and claimants pleaded remainder interests (judicial admissions) |
| Sufficiency of ownership evidence (deeds) | Claimants: deeds later submitted; pleadings and testimony established remainder interests | Estate: best-evidence rule requires production of deeds to prove title | Court: estate’s pleadings admitted claimants’ ownership (judicial admissions), so deeds were not required at hearing |
| Adequacy and timeliness of presented claims | Claimants: April application put estate on notice of tax claim; July amendment related back to April filing | Estate: claims failed because amounts not specified and some claims (taxes due Dec 31, 2015) were filed late | Court: statute does not require dollar amount; April filing adequately described tax claim and was timely; July amendment related back; rent claim (Nov 1, 2015) was advanced as arising after death by claimants and thus was barred as untimely |
| Liability for 2015 real estate taxes | Claimants: lease language and equity/logic mean decedent (the lessor) should pay 2015 taxes because rent was for 2015 crops | Estate: default rule places tax liability on owner when taxes become due (Dec 31), and decedent was not owner then; lease did not obligate decedent to pay taxes that became due after lease term | Court: lease ambiguous only if both interpretations reasonable; reasonable interpretation is decedent obliged to pay taxes that became due/delinquent during lease (2014 taxes), not 2015 taxes due Dec 31, 2015; remaindermen owned property on Dec 31, 2015 and thus liable for 2015 taxes; court’s reimbursement order reversed |
Key Cases Cited
- In re Estate of Alberts, 293 Neb. 1 (appellate review rules; contract ambiguity treated as question of law)
- Frohberg Elec. Co. v. Grossenburg Implement, 297 Neb. 356 (contract interpretation and ambiguity principles)
- In re Estate of Olsen, 254 Neb. 809 (best-evidence rule for deeds and instruments of title)
- J.R. Simplot Co. v. Jelinek, 275 Neb. 548 (requirements for a filing to qualify as a statement of claim under probate statutes)
- Prime Home Care v. Pathways to Compassion, 283 Neb. 77 (pleadings as judicial admissions)
- Wilson v. Fieldgrove, 280 Neb. 548 (customary farm lease terms context)
- Fisher v. Heirs & Devisees of T.D. Lovercheck, 291 Neb. 9 (effect of joinder/substitution of real party in interest)
- Cattle Nat. Bank & Trust Co. v. Watson, 293 Neb. 943 (distinction between actions at law and in equity)
- Linda N. v. William N., 289 Neb. 607 (invited error doctrine)