Karras v. Karras
76 N.E.3d 706
Ohio Ct. App.2016Background
- Andreas Karras and wife Ourania executed a joint trust and related estate-planning documents dated July 15, 1992; the trust contemplated transferring later-acquired property but also contained provisions governing settlors, trustees, occupancy of the marital residence, and survivorship.
- A 2005 amendment altered the trust’s A/B division and provided Ourania $200,000 in liquid funds from Andreas’ separate trust property.
- Andreas died in 2013 survived by Ourania and three adult children (the Siblings). After his death, various bank, retirement, and investment accounts (some titled individually, some jointly with rights of survivorship, and some titled in the trust) were at issue.
- The Siblings sued for declaratory judgment (that numerous accounts were trust property), conversion, and trustee removal; Ourania counterclaimed for declarations of her authority, ownership of certain accounts, conversion, concealment, and an accounting.
- The trial court granted and denied summary judgment in part: it held many disputed accounts were not trust assets, ruled on survivorship splits for certain joint accounts, found Ourania had a life estate in the residence but was responsible for related expenses, and resolved several conversion/concealment claims; Civ.R. 54(B) certification followed.
- On appeal/cross-appeal, the court affirmed most rulings but (1) found a genuine issue whether a PNC CD was funded with “joint funds” (affecting the survivorship split) and (2) found a genuine issue whether a silver belt removed from a safe was Ourania’s personal property (so reversed summary judgment dismissing her individual conversion claim as to that item).
Issues
| Issue | Plaintiff's Argument (Siblings) | Defendant's Argument (Ourania) | Held |
|---|---|---|---|
| Whether later-acquired accounts/ property were trust assets | Assignment and trust language (and subsequent manifestations) meant later-acquired property became trust property; amendment consideration supported enforceable promise | Many accounts were titled and funded as personal/joint or named beneficiaries; no contemporaneous manifestation the accounts were trust assets | Accounts opened or titled as personal/joint with survivorship/POD were not trust assets; summary judgment for Ourania on Siblings’ declaratory claim affirmed |
| Ownership of joint-and-survivorship PNC CD and checking accounts | Joint titling not dispositive if trust or contributions show different ownership; Siblings argued CD was trust/estate property | Ourania claimed CD was opened with her and Andreas’ joint funds and she is therefore entitled to greater share | Genuine issue as to PNC CD funding (Ourania’s affidavit claiming “joint funds”) — trial court’s 50/50 allocation reversed in part; issue remanded to determine net contributions and resulting shares |
| Whether trustee (surviving settlor) may act independently and remove successor co-trustees | Siblings: trust requires co-trustees to act in concert; surviving settlor is a co-trustee and cannot act alone over irrevocable portions | Ourania: trust grants settlors joint and several authority and surviving settlor broad power to act independently | Trust read as a whole requires co-trustees (the Siblings) to act in concert post-Andreas’ death; Ourania cannot unilaterally act or remove co-trustees — judgment for Siblings affirmed |
| Whether trust must pay real estate taxes/expenses for Ourania’s occupancy of residence | Siblings: trust allows her occupancy but does not obligate trust to pay expenses | Ourania: trustee must consider surviving spouse’s needs; provisions permit limiting trustee action and permit drawing on equity or selling to provide funds | Trust language unambiguous: trustee may permit rent-free occupancy and to pay taxes/expenses, but the operative text places the obligation on the occupant; the trust is not required to pay her housing expenses — judgment for Siblings affirmed |
| Conversion claim re: items removed from safe (including silver belt) | Siblings: removed property is being held in trust and conversion is not ripe; items were trust/estate property | Ourania: some items (e.g., silver belt) belonged to her individually and were wrongfully removed | Genuine issue whether the silver belt was her personal property; summary judgment for Siblings on her individual conversion claim reversed as to that belt; other conversion claims addressed depending on whether items are trust/estate property |
Key Cases Cited
- Estate of Cowling v. Estate of Cowling, 109 Ohio St.3d 276 (2006) (applies presumption and net-contribution framework for joint-and-survivorship accounts)
- Vetter v. Hampton, 54 Ohio St.2d 227 (1978) (presumption of equal ownership in joint accounts with survivorship absent contrary proof)
- Wright v. Bloom, 69 Ohio St.3d 596 (1994) (limits extrinsic evidence to defeat survivorship rights where one surviving co-party exists)
- In re Estate of Thompson, 66 Ohio St.2d 433 (1981) (joint account ownership in proportion to net contributions; allocation upon death when multiple survivors)
- Miller v. Miller, 139 Ohio App.3d 512 (2000) (discusses allocation of joint account balances when contributions are disputed)