962 N.W.2d 676
Neb.2021Background
- Molly Stacey (60) lived with Steven "Greg" Meyer from 2009; she was diagnosed with terminal cancer in 2015 and deteriorated in October 2017.
- Between Oct. 12–20, 2017, Molly (with Greg’s involvement) added Greg as joint owner on bank accounts, changed multiple beneficiary designations, executed quitclaim deeds putting both homes in joint tenancy with Greg, replaced her son as attorney-in-fact with Greg, and married Greg on Oct. 14; she died Oct. 23, 2017, intestate.
- Molly’s adult children (A.J. and Courtney) sued by declaratory judgment seeking to void the marriage and the October 2017 transactions on grounds of undue influence and lack of capacity; a special administrator was later joined as plaintiff.
- The district court found Molly lacked the requisite capacity and was subject to undue influence, voided the marriage and most transactions, but held the 2015 boat titled in Greg’s son Mark’s name was a gift (no resulting trust).
- Greg and Mark appealed (challenging standing, burden/standard of proof, and factual findings); the children and special administrator cross-appealed the boat ruling.
- The Nebraska Supreme Court affirmed the rulings on capacity and undue influence, reversed as to the boat and remanded to impose a resulting trust in favor of Molly’s estate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing / real party in interest to recover estate assets | Children: they initiated suit and later added the special administrator; the administrator joined and adopted claims. | Greg/Mark: only the estate’s special administrator may sue to recover estate assets; initial absence was jurisdictional. | Court: special administrator properly joined; §25-301 permits substitution/joinder; jurisdiction proper. |
| Validity of Oct. 2017 transactions (undue influence) | Children/administrator: Greg orchestrated transactions while Molly was vulnerable; circumstantial evidence supports undue influence. | Greg/Mark: testimony and experts show Molly acted knowingly and independently. | Court: de novo review (or give weight to credibility); clear and convincing evidence supports undue influence findings. |
| Mental capacity to marry and transfer assets | Children/administrator: Molly suffered delirium and lacked capacity during the relevant period; transactions contradicted her longstanding intentions. | Greg/Mark: medical records and witnesses show Molly was competent prior to Oct. 20; district court erred. | Court: clear and convincing evidence Molly lacked capacity; marriage and transactions voidable/void per capacity rules. |
| Ownership of 2015 boat titled in Mark’s name (resulting trust) | Administrator: Molly paid purchase price; titling in Mark’s name served Molly’s purposes (tax, operation) — resulting trust arises. | Mark: close relationship presumes a gift; trial court correctly found gift. | Court: equity review; resulting trust established by clear/satisfactory evidence; any gift presumption rebutted; remanded to impose trust. |
Key Cases Cited
- Valley Boys v. American Family Ins. Co., 306 Neb. 928 (2020) (standing is a jurisdictional issue)
- Egan v. County of Lancaster, 308 Neb. 48 (2020) (jurisdictional issues of law reviewed independently)
- In re Estate of Hedke, 278 Neb. 727 (2009) (probate claims to recover estate assets reside in appointed representative)
- Goff v. Weeks, 246 Neb. 163 (1994) (challenge to change in life insurance beneficiaries properly brought by person entitled if change is void)
- Cotton v. Ostroski, 250 Neb. 911 (1996) (bench-trial findings in actions at law reviewed for clear error)
- Mock v. Neumeister, 296 Neb. 376 (2017) (equitable actions are reviewed de novo but appellate court may give weight to trial court credibility findings)
- Miller v. Westwood, 238 Neb. 896 (1991) (elements required to set aside an instrument for undue influence)
- Dunbier v. Rafert, 170 Neb. 570 (1960) (burden on party alleging incapacity to prove inability to understand instrument)
- Edmunds v. Edwards, 205 Neb. 255 (1980) (annulment for lack of capacity reviewed as equitable matter)
- Wait v. Cornette, 259 Neb. 850 (2000) (definition and nature of resulting trust)
- Brtek v. Cihal, 245 Neb. 756 (1994) (presumption of gift may arise from close relationships, but can be rebutted)
- Lewis v. Poduska, 240 Neb. 312 (1992) (no resulting trust where transfer financed an illegal purpose; policy considerations applied)
- Brumbaugh v. Bendorf, 306 Neb. 250 (2020) (acceptance of benefits may forfeit appellate rights)
- In re Claims Against Pierce Elevator, 291 Neb. 798 (2015) (appellate court reappraises evidence de novo in equity appeals)