Mueller v. Edwards
2017 WI App 79
Wis. Ct. App.2017Background
- On Nov. 18, 2013, Robert Zernzach opened a US Bank certificate of deposit POD account for $200,000 naming Martina Welke and Thomas Edwards as pay-on-death (POD) beneficiaries; the bank’s signature card recorded that designation and it was never changed for that CD before his death.
- POD designations are part of the depositor–financial institution account agreement and can be changed by the depositor by filing appropriate instructions with the bank.
- Mueller (neighbor/friend) found a handwritten note (Exhibit 8) in Zernzach’s safe after his death listing multiple accounts and naming Mueller as beneficiary of six of seven POD accounts; the note was not provided to US Bank during Zernzach’s life.
- Zernzach did amend beneficiaries on other US Bank accounts (including a checking account) by signing bank forms; he did not file any form amending the CD’s POD designation to name Mueller.
- The circuit court held Welke and Edwards were the lawful owners of the CD proceeds; Mueller appealed, arguing the handwritten note validly changed the POD beneficiary.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a separate handwritten writing not filed with the bank can change a POD beneficiary on a bank account governed by Wis. Stat. ch. 705 | Mueller: Exhibit 8 is a valid beneficiary designation under Wis. Stat. §§ 705.01(9) and 705.10 even though it is separate from the bank contract | Bank/Welke & Edwards: POD designations must be recorded in the financial institution’s account records; a separate writing not filed with the bank cannot alter the POD designation | The court held Exhibit 8 did not change the POD designation; the beneficiary is as recorded by the bank (Welke and Edwards) because POD designations are part of the depositor–bank account agreement and changes must be filed with the bank |
Key Cases Cited
- Estate of Sheppard v. Schleis, 324 Wis. 2d 41, 782 N.W.2d 85 (2010) (depositor retains control and may change POD recipients prior to death)
- Seider v. O'Connell, 236 Wis. 2d 211, 612 N.W.2d 659 (2000) (statutory interpretation reviewed de novo)
- State ex rel. Kalal v. Circuit Court for Dane Cty., 271 Wis. 2d 633, 681 N.W.2d 110 (2004) (rules for statutory interpretation and giving statutory language its ordinary meaning)
- State ex rel. Hensley v. Endicott, 245 Wis. 2d 607, 629 N.W.2d 686 (2001) (specific statutory provisions control over more general ones)