Traci Kron v. Donna Sherman, as Personal Representative of the Unsupervised Estate of Alan Kron, (mem. dec.)
74A01-1702-EU-348
Ind. Ct. App.Sep 8, 2017Background
- Alan and William Kron opened a joint Hoosier Hills Credit Union account in 2009 and operated it for farm expenses; the account agreement expressly granted a right of survivorship.
- In 2015 Alan made large withdrawals from the account to benefit Traci (purchased a truck and paid off a mortgage on a house for them).
- Alan and Traci executed a prenuptial agreement and Alan’s later will both stated Traci should receive Alan’s share of the jointly owned account upon his death.
- Alan died November 21, 2015; the account balance was $102,446.62. William survived him.
- Traci petitioned to enforce the will’s terms, seeking a share of the account; Sherman (Alan’s personal representative) and William (through a guardian ad litem) contended the survivorship right entitles William to the whole account.
- The trial court awarded Traci only $492.57 from the account (offsetting prior withdrawals), plus $3,500 in attorney fees for Traci’s good-faith claim; the court of appeals reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Traci is entitled to funds from the 2009 joint account | Traci: Alan’s will and prenuptial agreement show intent to give her Alan’s share | Sherman/William: The account’s right of survivorship vests ownership in William at Alan’s death | Court: Reversed trial court — survivorship controlled; William is entitled to entire account absent clear-and-convincing evidence of contrary intent when opened |
| Whether prior withdrawals by Alan should reduce any share owed to Traci | Traci: She is entitled to account share despite Alan’s withdrawals | Sherman: Account belongs to William; Sherman won’t recover withdrawals | Court: Rejected offsets — funds withdrawn by decedent do not become estate property; neither Sherman nor Traci entitled to proceeds |
Key Cases Cited
- Decker v. Zengler, 883 N.E.2d 839 (Ind. Ct. App. 2008) (joint-account survivorship defeats contrary will language)
- In re Estate of Herin, 40 N.E.3d 495 (Ind. Ct. App. 2015) (challenger must prove clear and convincing intent to alter survivorship)
- Dean v. Pelham, 899 N.E.2d 662 (Ind. Ct. App. 2008) (statutory presumption that surviving joint owner receives account balance)
- Porter Dev., LLC v. First Nat. Bank of Valparaiso, 866 N.E.2d 775 (Ind. 2007) (statutory interpretation uses plain language to determine legislative intent)