Joyce J. BROUSSEAU
v.
Heidi D. BROUSSEAU.
Supreme Court of Vermont.
*774 Present: REIBER, C.J., JOHNSON, SKOGLUND, and BURGESS, Associate Justices.
ENTRY ORDER
¶ 1. Mother appeals a superior court decision granting daughter summary judgment and thereby entitling her to one-half of the proceeds from the sale of mother's property as joint tenant. We reverse the summary judgment order and remand for further proceedings.
¶ 2. Mother acquired her interest in the property at issue in 1965 when it was deeded to mother, mother's mother, and mother's father as joint tenants with rights of survivorship. Mother's parents purchased the property fоr their own use, but included mother as a joint tenant on the deed solely for estate planning purposes to avoid probate upon their deaths. In 1980, mother moved to the property to care for her elderly parents. Mother's father died in September of 1983. In March 1984, while mother's mother was still alive, mother signed a deed purporting to convey title to the property to herself and daughter as joint tenants with rights of survivorship. Mother claims that it was not intended as a gift, and that both parties understоod that the deed was an estate planning tool. Mother's mother died three months after the 1984 deed was signed.
¶ 3. Mother currently lives at an assisted-living facility. In 2005, mother decided to sell the property to help her meet the monthly expenses for the facility. Daughter allegedly refused to quitclaim her interest *775 in the property to mother or to permit mother to receive the entire proceeds from the sale of the property. Prospective buyers of the property later infоrmed mother of a title defect in the 1984 deed; it did not include mother's mother who was still living at the time the deed was executed. Mother then petitioned the probate court to adjudge her interest in the property, and in December 2005, the court determined that mother "possessed . . . an existing enforceable title" and had the right to convey the property free of any claims.
¶ 4. In November 2005, mother petitioned the superior court to: (1) declare that mother is the sole legal and equitable owner of the property; (2) order daughter to comply with the sale of the property; (3) declare that mother is entitled to all proceeds from the sale of the property; and (4) enjoin daughter from making any claims against the proceeds of the sale. Daughter filed a motion for summary judgment. The superior court granted the motion, concluding that mother's "voluntary act in titling the property in both her and her daughter's names, as joint tenants with rights of survivorship" conclusively demonstrated her intent to make an inter vivos gift of a one-half interest in the property. This appeal followed.
¶ 5. We review a grant of summary judgment using the same standard as the trial court. Mellin v. Flood Brook Union Sch. Dist.,
¶ 6. In Vermont, there are two essential elements of an inter vivos gift: (1) donative intent and (2) delivery. Tyree v. Ortiz,
¶ 7. In defining donative intent in this context, courts have traditionally taken one of two approaches. The first approach treats donative intent as the intent to transfer legal title, established by the mere act of placing property into joint title without receiving consideration in return. 1 B. Turner, Equitable Distribution of Property § 5:44, at 483-85, 488-89 (3d ed.2006) (discussing the "legal title approach" to donative intent and collecting cases from jurisdictions follоwing this approach). The second approach, and the one favored by this Court, construes donative intent as the intent to confer immediate, beneficial ownership in the property at issue such that the mere joint titling of property without consideration does not conclusively establish intent to gift the property. Id. (discussing "beneficial interest approach" to donative intent and collecting cases from jurisdictions following this approach); see also, e.g., Stephan,
¶ 8. Here, by granting summary judgment for daughter, the trial court ignored mother's attestation that she did not intend to convey a present beneficial interest to daughter by signing the 1984 deed, and that daughter was aware that the property was titled to her as joint tenant in an effort to avoid probate if mother still owned the house at the time of her death.[1] The court relied on Foucher v. First Vermont Bank & Trust Co., a federal district court case, to determine that the mere act of titling the property in daughter's name as a joint tenant was legally sufficient to establish the intent and delivery required for an inter vivos gift.
¶ 9. The trial court was mistaken in its reliance on Foucher, whose facts are easily distinguished from the present case. In Foucher, a father and daughter jointly owned several investment accounts. Id. at 920. Before his death, the father fraudulently transferred the funds into a bank account solely in his name by forging his daughter's signature. Id. at 920-22. After the father's death, the daughter sued the bank for wrongful conversion of her assets held in joint tenancy. Id. at 919. In its defense, the bank a third party to the joint tenancy argued that the father had contributed the funds used to purchase the joint assets and that the daughter could not prove that her father manifested an intent to grant her a present interest. Id. at 923. Because the father was deceased and could not speak to his intent to gift the property, the court looked to the only evidence it had to determine his intent the voluntary act of titling the accounts jointly in his daughter's name. See id.
¶ 10. Here, in contrast, the dispute involves only the original parties to the joint tenancy, both of whom are still alive. Thus, our decision in Stephan is directly on point. In Stephan, a son convinced his mother to put her home in their joint *777 names to avoid having to go through probate court in the event of her death.
¶ 11. The facts of this case are strikingly similar to those in Stephan. Here, mother claimed in her affidavit that she "did not intend to gift [her] home" to daughter by titling it in their joint names and that daughter at all times "understood that the house was always [mother's] and [mother] could do anything [she] wanted with [the] home." While daughter contested this allegation in her answer with a one-word denial, she filed no affidavit in support of her version of the facts, and therefore, the only facts on the record regarding mother's intent when deeding the property were those provided by mother's pleadings. Considering our precedent in Stephan, and giving mother the benefit of all reasonable doubts and inferences, we cannot say that there is "no genuine issue of material fact" or that judgment in favor of daughter is required as a matter of law.
¶ 12. Our holding today does nothing to undermine the general presumption that the act of titling property in another's name establishes intent to convey a present interest in the property. Phillips v. Plastridge,
¶ 13. Because we find that the trial court erred in granting summary judgment to daughter, we do not reaсh the issue of daughter's precise interest in the property if any given the title defect at the time of the 1984 deed. Rather, we reverse and remand so that the trial court may decide these issues after consideration of the evidence presented by the parties.
Reversed and remanded for further proceedings consistent with this opinion.
DOOLEY, J., dissenting.
¶ 14. Although the majority's response to mother's claim to the value of the property *778 in order to pay for assisted living is understandable, the undesirable рrecedent it establishes is far too high a price to pay for the result. Contrary to the majority's assertion, its reasoning and result are not controlled by an earlier decision of this Court. Accordingly, I dissent.
¶ 15. Mother asks us to hold that otherwise valid record title to real estate is subject to a grantor's unexpressed intent to avoid the consequences of transferring property later by purporting to transfer it now. In endorsing this result, the majority subverts record title to post-hoc, self-serving testimony of intent. It also gives the desire to "avoid probate" a special status that allows a property owner to create a fictitious record title interest, revocable whenever the property owner desires for any reason or no reason.
¶ 16. The linchpin of the majority's rationale is that a conveyance made in contemplation of "estate planning" specifically a desire to "avoid probate" does not show donative intent and in fact rebuts the legal presumption in favor of a gift. This is a bad rule, and one we should categorically reject. We should instead follow the substantial authority from other jurisdictions that evidence that a record transfer of real property was intended to become effective only on the death of the transferor, in order to avoid probate, fails to rebut the presumption that the gift of the property was complete on passing and recording the deed. In the absence of any truly materiаl evidence that the joint tenancy in this case was not a gift, I would affirm summary judgment.
¶ 17. The precise question before us is this: has mother set forth sufficient evidence to rebut the presumption that the 1984 deed was a gift to survive summary judgment?[2] The majority aptly recites *779 our gift-presumption where property is titled jointly. See ante, ¶ 12; Phillips v. Plastridge,
¶ 18. Furthermore, the presumption of gifts for transfers between рarents and their children, including adult children, is well established. See Phillips,
¶ 19. The majority, however, concludes that mother's stated intent of avoiding probate sufficiently rebuts the gift presumption to create a genuine issue of material fact. Numerous decisions have held to the contrary, and I would follow them. Courts have held that a stated intent of financial planning, including the avoidance of probate, does not rebut the presumption that jointly titled property is intended as a gift. See Bartlett v. Bartlett,
¶ 20. I recognize that the most common precedents are divorce cases because the question of donative intent most commonly arises in this context. This is a distinction without differenсe, however, because the factual and legal significance of a stated intent of estate planning does not, and should not, vary depending on the familial relationship of the parties. Courts have equated the presumption of gifts between spouses to the presumption of gifts between parents and children, noting that, in both instances, the grantee is a "natural object of the [grantor's] bounty." Sullivan,
¶ 21. I also recognize that there is a split of authority on the issue of whether estate planning considerations can rebut the joint title gift presumption. See 1 B. Turner, Equitable Distribution of Property § 5:44, at 488-89 (3d ed.2006) (collecting cases). Contrary to the majority's assertion that one side of this issue is "favored by this Court," ante, ¶ 7, however, this treatise does not place Vermont on either side of the debate. Id. It thus supports the notion that this is an open question in our state that we can decide based on the relevant policy considerations. Retention of the gift presumption for joint tenancies where thе grantor's stated intent is one of estate planning is consistent with the fundamental purpose of record title to simplify and make transparent the ownership of land. See Carpenter v. Hollister,
¶ 22. To buttress its notion that a grantor's subjective intent can defeat record title and the joint title gift presumption, the majority relies almost entirely on Stephan v. Lynch,
¶ 23. Viewed in its entirety, the underlying concern in Stephan was one of undue influence and "taking advantage" of a mother's generosity towards her only son. That undue influence or duress can rebut donative intent is, of course, well established. Landmark Trust (USA), Inc. v. Goodhue,
¶ 24. Finally, the dismissal of mother's claim at this procedural stage for her failure to overcome the gift presumption would be an ordinary application of summary judgment. We routinely require nonmoving parties to overcomе legal presumptions to survive summary judgment. See, e.g., Earle v. State,
¶ 25. Here, to support its reversal of summary judgment, the majority emphasizes that daughter did nothing more than deny mother's claim that the property was intended as a gift. Ante, ¶ 11. In fact, this is all daughter's summary judgment burden requires. The burden is on mother to rebut the presumption of donative intent that accompanies the voluntary joint-titling of property. See Adams,
NOTES
Notes
[1] There are several legal mechanisms that are typically used by property holders in estate planning to avoid the inconvenience of рrobate proceedings. One such mechanism is joint tenancy, which results in the automatic transfer of property upon death by operation of law. Another commonly used tool is the revocable trust, which was equally available to mother to legally effectuate her stated desire of avoiding probate in the event that she retained title to the property at the time of her death.
[2] I say this is the question before us because the majority does not address the issue raised by the mother's lack of full title when she granted the joint tenancy to daughter. At the time of the conveyance, mother shared the property in joint tenancy with her own mother. Mother's conveyance by warranty deed in 1984, therefore, would seem subject to mother's mother's one-half interest, leaving daughter with no more than a quarter interest. See State v. Thomas,
The doctrine of after-acquired title has long been recognized in Vermont, summarized concisely by the bankruptcy court: "Under Vermont law, a warranty deed conveys the grantor's after-acquired title to the grantee 'by operation of law, in discharge of the covenants of the deed.'" In re Gorman,
Here, by decree of the probate court or otherwise, mother subsequently obtained the title she purported to convey in 1984. Mother's after-acquired title thereby enured to the benefit of daughter such that daughter has a one-half interest in the property consistent with the terms of the warranty deed.
[3] Nor does Mizzi v. Mizzi,
