In re Estate of Schurman
30 Neb. Ct. App. 259
| Neb. Ct. App. | 2021Background
- Victor Schurman died in 2012; his will left specific bequests and the residue largely to his son Michael; Christine (second wife) and her children are also beneficiaries/trust parties.
- Michael farmed six parcels ("Six Parcels") under lease payments; some rental proceeds were paid to Michael rather than to the estate; Michael received at least $160,000 in funds the court later characterized as estate-related.
- A successor personal representative administered the estate, later filed a confession of judgment to be removed, and remained as special administrator with limited duties; no full successor personal representative was appointed after removal.
- Christine’s children, Patricia and Jeffrey Harris (intervenors), as successor cotrustees of Christine’s revocable trust, moved to intervene claiming they (and the Trust) were harmed by Michael’s litigation and retention of rental income; they sought reimbursement of attorney fees, recovery of estate-related income, and a full accounting.
- The county court ordered Michael to return $160,000 to the estate, denied most fee claims, and left some claims to be refiled after a final accounting; Michael appealed challenging standing and jurisdictional bases for the relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Do intervenors have standing to recover estate assets (rental income) from Michael? | Intervenors: they may protect Trust interests and recover estate-related funds Michael retained. | Michael: only a court-appointed personal representative may sue to recover estate assets. | Held: Intervenors lack standing to pursue recovery of estate assets; orders based on that claim vacated. |
| Did the probate court have subject-matter jurisdiction to order reimbursement of attorney fees incurred in district court? | Intervenors: sought reimbursement for fees Christine/Trust paid defending district-court suits. | Michael: probate court lacks authority over fees incurred in district court and between heirs/devisees. | Held: Probate court lacked jurisdiction over district-court fees; that portion of the order is void and vacated. |
| May intervenors seek direct assessment of attorney fees incurred in the probate proceedings against Michael? | Intervenors: court may assess probate-related fees against Michael for defending probate claims. | Michael: intervenors cannot impose obligations typically enforced by a personal representative. | Held: Intervenors had standing to request direct reimbursement for probate-incurred fees; county court denied relief and that denial was not appealed. |
| Do intervenors have standing to request an accounting or to object to estate administration/payments to the successor personal representative? | Intervenors: as successor cotrustees and beneficiaries of Christine’s Trust, they have an interest and may seek an accounting and object to distributions/use of assets. | Michael: objections to estate administration and recovery actions belong to personal representative. | Held: Intervenors have standing to request an accounting and to object to proposed estate expenditures; claim against Michael to reimburse estate expenses was beyond their standing and vacated; claims re: successor rep fees preserved for challenge in a final accounting. |
Key Cases Cited
- Malousek v. Meyer, 309 Neb. 803, 962 N.W.2d 676 (Neb. 2021) (estate assets/rights to sue rest with personal representative)
- In re Estate of Hedke, 278 Neb. 727, 775 N.W.2d 13 (Neb. 2009) (heir may act only where personal representative refuses to act; standing limits explained)
- Hahn v. Verret, 143 Neb. 820, 11 N.W.2d 551 (Neb. 1943) (executor actions to reacquire estate assets—distinguished)
- In re Estate of Jurgensmeier, 142 Neb. 188, 5 N.W.2d 233 (Neb. 1942) (objections to personal representative’s accounting by devisees—distinguished)
- In re Estate of Emery, 258 Neb. 789, 606 N.W.2d 750 (Neb. 2000) (probate actions are in rem; interested persons may appear to protect their interests)
- Mischke v. Mischke, 253 Neb. 439, 571 N.W.2d 248 (Neb. 1997) (authority for personal representative to recover property for estate)