In Re Knichel
2011 Mo. App. LEXIS 1064
| Mo. Ct. App. | 2011Background
- Knichel diagnosed with brain cancer in 2001; 2002 documents granted power of attorney to children and equal estate shares.
- 2003-2004 Knichel changed beneficiaries and added Madsen as joint tenant; executed trust, will, and durable power of attorney in August 2004 drafted by Amen.
- Trust designated Madsen as trustee, Amen as 'special co-trustee' with broad powers to resolve disputes and gatekeep actions.
- Post-death (2004), Madsen and Amen sought to fund trust assets and withheld distributions; accounting issues arose including UBS IRA mischaracterization.
- Children filed suit in 2006-2007; 2010 trial found Madsen breached duties, Amen breached fiduciary duty by advising while trustee, and Amen was removed as special co-trustee.
- Appeal filed by Amen challenging standing; court dismissed for lack of aggrieved-party standing, affirming removal and restructuring of the trust.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to appeal the probate judgment | Amen seeks standing as aggrieved party due to removal and potential licensure harms. | Children challenge standing; Amen lacks pecuniary interest in trust assets. | Amen lacks standing; appeal dismissed. |
| Sufficiency of evidence Amen breached fiduciary duties | Amen breached by acting as special co-trustee while advising; conflicts of interest. | Evidence insufficient to show breach of impartial fiduciary duty. | Evidence supports breach; court affirmed removal and removal of special co-trustee. |
| Validity of eliminating the special co-trustee provision | Elimination protects beneficiaries and enforces fiduciary duties. | Provision removal was appropriate to prevent conflicts of interest. | Removal of special co-trustee provision affirmed. |
Key Cases Cited
- In re Forbeck, 310 S.W.3d 740 (Mo.App. E.D.2010) (standing of fiduciaries to appeal under probate-like matters analyzed)
- Freeman v. De Hart, 303 S.W.2d 217 (Mo.App. E.D.1957) (executor/trustee fees not a vested pecuniary interest; standing limitations discussed)
- Weldon ex rel. Vivion v. Weldon, 231 S.W.3d 158 (Mo.App. W.D.2007) (aggrieved party requires direct prejudicial impact on rights)
- Stockman v. Safe-Skin Corp., 36 S.W.3d 447 (Mo.App.2001) (threat of malpractice claims insufficient to confer standing)