In re Estate of Schurman
30 Neb. Ct. App. 259
| Neb. Ct. App. | 2021Background
- Victor Schurman died in 2012; his will left the residuary estate largely to his son Michael and bequeathed specific assets to his second wife Christine and others. A successor personal representative administered the estate and deeded an undivided one-half interest in six farm parcels to Michael per the will.
- Michael received rental income from the six parcels (including payments in 2012 and later lease proceeds). The successor personal representative never demanded Michael remit rental receipts to the estate antes distribution.
- Christine later died; her successor cotrustees (Patricia and Jeffrey Harris, the intervenors) claimed the Trust suffered losses from Michael’s litigation and retention of estate income and moved to intervene seeking: (1) reimbursement for attorney fees (district and probate court fees), (2) recovery of estate income from Michael, and (3) an accounting.
- The county court (probate) denied district-court fee reimbursement, declined to award probate fees, ordered Michael to return $160,000 to the estate, and denied other claims without prejudice. Michael appealed, principally arguing the intervenors lacked standing to pursue estate assets.
- The Court of Appeals vacated parts of the county court’s order for lack of subject-matter jurisdiction and for lack of intervenors’ standing (including the $160,000 return), affirmed other rulings (e.g., denial of probate fees), and held intervenors have standing to request an accounting and to object to estate accountings.
Issues
| Issue | Michael's Argument | Intervenors' Argument | Held |
|---|---|---|---|
| Whether intervenors have standing to recover estate assets / force Michael to return $160,000 | Only the personal representative may pursue recovery of estate assets; intervenors lack standing | As cotrustees and beneficiaries, intervenors can protect Trust interests and seek recovery | Intervenors lack standing to pursue estate assets; $160,000 return order vacated |
| Whether probate court had subject-matter jurisdiction to award reimbursement for attorney fees incurred in district court | Probate court lacks jurisdiction over fees incurred in district-court litigation | County court could order reimbursement as part of probate litigation | Probate court lacked subject-matter jurisdiction; order denying district-court fees is void and vacated |
| Whether intervenors may seek reimbursement from Michael for attorney fees incurred in probate proceedings | Intervenors lack standing to assess or collect fees from another heir | Court can assess costs against Michael for probate fees paid by Christine/Trust | Intervenors had standing to request assessment of probate fees, but county court denied fees (no cross-appeal) — denial affirmed |
| Whether intervenors have standing to obtain an accounting and to object to successor personal representative’s fees | Only a personal representative may enforce estate claims; intervenors lack standing | Intervenors (as successor cotrustees/beneficiaries) have a protectable interest and can request an accounting and object to accountings | Intervenors have standing to request an accounting and to object to estate accountings; claim re successor PR fees denied without prejudice to refiling after final accounting |
Key Cases Cited
- In re Estate of Hedke, 278 Neb. 727, 775 N.W.2d 13 (Neb. 2009) (heir generally lacks standing to sue for estate claims unless personal representative refuses to act)
- Malousek v. Meyer, 309 Neb. 803, 962 N.W.2d 676 (Neb. 2021) (right and duty to sue for estate assets reside in appointed personal representative)
- Mischke v. Mischke, 253 Neb. 439, 571 N.W.2d 248 (Neb. 1997) (authority of personal representative to recover estate property)
- Hahn v. Verret, 143 Neb. 820, 11 N.W.2d 551 (Neb. 1943) (executor’s role in reacquiring estate assets to pay debts and expenses)
- In re Estate of Jurgensmeier, 142 Neb. 188, 5 N.W.2d 233 (Neb. 1942) (devisees’ objections to personal representative’s accounting context)
- In re Estate of Emery, 258 Neb. 789, 606 N.W.2d 750 (Neb. 2000) (probate proceedings are in rem and every interested person may appear to protect interests)
- In re Estate of Graham, 301 Neb. 594, 919 N.W.2d 714 (Neb. 2018) (beneficially interested persons may object to administration accounts)