In the Matter of the ESTATE OF Glenn E. OLSON, Deceased.
Nos. 24127, 24142.
Supreme Court of South Dakota.
Decided Jan. 9, 2008.
Rehearing Denied Feb. 20, 2008.
2008 SD 4
Argued on Jan. 10, 2007. Reassigned June 4, 2007.
[¶ 20.] The circuit court‘s conclusions of law and judgment are supported by the underlying findings which stand procedurally unchallenged. In so holding, we need not address Linda‘s claim that the circuit court erroneously transferred a burden to show absence of undue influence, fraud or duress.
[¶ 21.] Affirmed.
[¶ 22.] SABERS, KONENKAMP, ZINTER, and MEIERHENRY, Justices, concur.
Craig K. Thompson, Vermillion, South Dakota, Attorney for appellee Wayne A. Olson, Personal Rep./Estate.
[¶ 1.] Wayne Olson, in his capacity as the personal representative of Glenn Olson‘s estate, sold real property that had been specifically devised to James Olson and other devisees as tenants in common. Personal property passing under the residuary clause was also sold at public auction. The trial court confirmed the sales but sanctioned the personal representative $1,000 for failing to give James advance notice of the public auctions. We reverse and remand in part and affirm in part.
FACTS AND PROCEDURAL HISTORY
[¶ 2.] Glenn Olson died testate on August 3, 2002. At the time of his death, he owned approximately 132 acres of farmland, including a homestead. This realty and home, which was built in 1900, had been in the Olson family for generations. Although apparently a modest homestead by current standards, Glenn had spent his entire life living in it while farming the adjoining land. His sister also lived in the homestead and took care of housekeeping chores. Wanting to keep this farm in the family he wrote a will where he specifically devised this real estate to James and six other nieces and nephews (collectively heirs). Glenn‘s personal property was devised to the same heirs through the residuary clause.
[¶ 3.] Probate of Glenn‘s will is subject to South Dakota‘s Uniform Probate Code (UPC) as it was drafted subsequent to South Dakota‘s implementation of the UPC in 1995. Therefore, his estate was informally probated in accordance with the UPC.1 Wayne was appointed personal representative in September 2002. Following his appointment, Wayne determined that the buildings on the homestead were in such poor condition that they constituted a drain on the estate. Consequently, without the notice to the heirs as required by
[¶ 4.] James had filed a demand for notice pertaining to the estate under
[¶ 5.] James ultimately did receive legal notice of the completed sales through the filing of the summary of these public sales. He also received notice of the motion to confirm the sales. James appeared and objected to the confirmation of both sales. Following a hearing on the motion, the trial court confirmed the sales, finding that the land was a drain on the estate, the sales were conducted in a reasonable manner, and the land brought an exceptional price exceeding market value. Ultimately, the trial court concluded that “[t]he evidence is abundant that the sale [of real
[¶ 6.] James did not object to the court‘s finding that there was good reason to sell the property. Instead, James argued that Wayne did not have the power to sell specifically devised property. James also claimed that he was entitled to advance notice of the public auctions under
[¶ 7.] We have restated the parties’ issues2 on appeal as follows:
- Whether the personal representative possessed the power to sell specifically devised land when the power of sale was not contained in the will and the sale was not necessary to pay estate debts.
- Whether the sale of personal property was void under
SDCL 29A-3-204 andSDCL 29A-3-715(b) for failure to give advance notice of the public auction, and if not void, was the remedy of damages proven.
By notice of review, Wayne raises the following issue:
- Whether the trial court erred in assessing a sanction against the personal representative for failure to give advance notice of the sales.
STANDARD OF REVIEW
[¶ 8.] This Court‘s standard of review is well settled:
This Court reviews a trial court‘s findings of fact under the “clearly erroneous” standard and overturns a trial court‘s conclusions of law only when the trial court erred as a matter of law. Century 21 Associated Realty v. Hoffman, 503 N.W.2d 861, 864 (S.D.1993) (citations omitted).... Questions of law are reviewed de novo. City of Colton v. Schwebach, 1997 SD 4, ¶ 8, 557 N.W.2d 769, 771. “This Court interprets statutes under a de novo standard of review without deference to the decision of the trial court.” In re Estate of Jetter, 1997 SD 125, ¶ 10, 570 N.W.2d 26, 28.
Matter of Estate of O‘Keefe, 1998 SD 92, ¶ 7, 583 N.W.2d 138, 139.
ANALYSIS AND DECISION
[¶ 9.] 1. Whether the personal representative possessed the power to sell specifically devised land when the power of sale was not contained in the will and the sale was not necessary to pay estate debts.
[¶ 10.] James first argues that Wayne was without power to sell specifically devised land because there was no power of sale provision in the will and the sale of specifically devised property was inconsistent with the specific devisees’ right to receive property in kind. We agree.
[¶ 11.] In 1877, our first Territorial Probate Code was passed which contained a relevant statute which was to remain in effect until the enactment of the Uniform Probate Code over a century later.
When property is directed by the will to be sold, or authority is given in the will to sell property, the executor may sell any property of the estate without the order of the probate court, and at either public or private sale, and with or without notice, as the executor may determine[.]
Section 194 Probate Code, Revised Codes 1877, re-codified as
it appears to be necessary or that it would be for the advantage, benefit and best interests of the estate and those interested therein or for the purpose of paying a debt secured by a mortgage or lien on such property[.]
Id. at 782 (emphasis added) (quoting SDL 1960 Supp. 35.1501, re-codified as
[¶ 12.] As is uncontested herein, there is no such power of sale granted to Wayne by the decedent‘s will to validate the sale. Thus, the issue now before us calls upon us to engage in statutory interpretation to determine if the passage of the Uniform Probate Code by the South Dakota Legislature in 1995 made a change so significant in a century old doctrine as to essentially reverse it.
[¶ 13.] Some historical background of the UPC particular to South Dakota is of analytical assistance to guide us in the issue now before us: “[a]s an overall view, we would note that the UPC does not appear to be a revolutionary departure from past probate procedure.” Matter of Estate of Jetter, 1997 SD 125, ¶ 16, 570 N.W.2d 26, 29. Therein, we cited to
Although no legislative history exists concerning the adoption of the UPC, the
[¶ 14.] According to legislative rules of construction applicable exclusively to wills, “[a] specific devisee has a right to the specifically devised property in the testator‘s estate at death.”
[¶ 15.] Furthermore, “[u]pon the death of a person, that person‘s real and personal property devolves to the persons to whom it is devised by will.”
[¶ 16.] Unlike pre-UPC law requiring that a power of sale be in the will, personal representatives now possess a statutory power of sale unless a contrary provision is contained in the will.
Except as restricted or otherwise provided by the will or by an order in a formal proceeding and subject to the priorities stated in § 29A-3-902,4 a personal representative, acting reasonably for the benefit of the estate, may properly:
...
(6) Acquire or dispose of an asset, including land ...
(23) Sell, mortgage, or lease any real or personal property of the estate or any interest therein....
(Emphasis added).
[¶ 17.] Although
[¶ 18.] A Pennsylvania court interpreting a similar statutory power of sale conferred upon a personal representative concluded that “no such power of sale exists as to real property specifically devised.” Brown v. Bailey, 2 Fiduc. Rep. 342, 84 Pa. D. & C. 269, 274, 1953 WL 4538, at *3 (1953). The statute in Brown provided that the “power of sale has no application where it is ‘otherwise provided by the will.‘” Id. (citation omitted). Furthermore, other courts have held that “a general power authorizing the sale or rental of any property which the testator possessed at the time of death applies only to property not specifically devised.” In re Estate of Radjenovich, 1991 WL 70304, at *1 (Minn.Ct.App.1991) (unpublished) (emphasis added) (citing 1 R. STEIN, STEIN ON PROBATE, § 10.01b(3) (2d ed 1990)); 1 R. STEIN, STEIN ON PROBATE, § 10.01b(3) (2d ed. 1990) (“Minnesota Statutes section 524.3-715 states, in effect, that the personal representative has power to sell ‘except as restricted or otherwise provided by the will.’ A specific devise should be considered such a restriction“). See also In re De Forest‘s Estate, 147 Misc. 82, 88, 263 N.Y.S. 135, 142 (N.Y.Sur.1933) (property specifically devised is not subject to general power of sale granted to executors); Wilkinson v. Chambers, 181 Pa. 437, 442, 37 A. 569, 569 (1897); In re Estate of Gamble, 183 So.2d 849, 852 (Fla.Dist.Ct.App.1966); In re Chaney‘s Estate, 120 Tex. 185, 189, 36 S.W.2d 709, 711 (1931).
[¶ 19.] In Radjenovich, the Minnesota Court of Appeals held the trial court properly found that the general powers given to the personal representative related only to property not specifically devised. Radjenovich, 1991 WL 70304, at *1 (citing In re Scott‘s Will, 88 Minn. 386, 388, 93 N.W. 109, 110 (Minn.1903)). Thus, the personal representative was not entitled to sell lakeshore property specifically devised to the testator‘s sons. Id. Likewise, in addressing a similar situation, the Pennsylvania Supreme Court reasoned:
The authority given to the executor in item 3 cannot be construed as extending to and including lands specifically devised in items 2 and 5. A construction of it which would enable the executor to defeat specific devises of real estate cannot be sanctioned. The reasonable and proper construction of it is that which limits it to property not specifically devised by the will. This construction obviously accords with the intention of the testator in conferring the power to sell or lease.
Wilkinson, 181 Pa. at 442, 37 A. at 569.
[¶ 20.] Wayne claims the will did not restrict or conflict with the statutory power of sale. However, the will provided for the specific devise of the real property and did not otherwise provide for a power of sale. This inherently conflicts with the statutory power of sale, for it is an indication of the testator‘s intent that the real property not be sold. Instead, Glenn Ol-
[¶ 21.] The authority Wayne relies upon for approving the sale of this specifically devised property is also readily distinguishable. Most of the cases are pre-UPC and the wills in those cases expressly granted the personal representative a power of sale. For instance, in In re Kappenmann‘s Estate, the will provided: “I authorize and empower my personal representative ... if and whenever in the settlement of my estate he shall deem it advisable, to sell ... the whole or any part of my real and personal estate.” 82 S.D. at 93-94, 141 N.W.2d at 781. Thus, there was no restriction on the power to sell; instead, there was an express grant of a power to sell. The Kappenmann Court even specified that there was no bar to the sale of specifically devised real property when it was made under a power of sale contained in the will, because the express authority was contained in the testator‘s will. 82 S.D. at 97, 141 N.W.2d at 783 (citing Champlin v. Powers, 33 A.L.R.2d 1176, 80 R.I. 30, 90 A.2d 787).5
[¶ 22.] Thus, in the cases relied upon, including Kappenmann, the will established the power of sale, not a statute. Although the trial court concluded there was no difference between a power of sale granted by the will and a power of sale granted by statute, it is relevant to the testator‘s intent. And, “the intention of the testator, as taken from the will as a whole, controls the exercise of powers granted to the personal representative.” Radjenovich, 1991 WL 70304, at *1 (citing Lovejoy v. McDonald, 59 Minn. 393, 401, 61 N.W. 320, 321 (Minn.1894)).
[¶ 23.] Other courts have also recognized the distinction between a testator granting the power of sale as opposed to a statute: “Absent a grant of a power of sale by the testator, or specific instructions by the testator that the devise be sold before distributed, specific devises must be distributed in kind.” In re Estate of Polly, 511 So.2d 755, 756 (Fla.Dist.Ct.App.1987) (citing generally In re Estate of Smith, 200 So.2d 547 (Fla.Dist.Ct.App.1967)); Gamble, 183 So.2d 849 (additional citation omitted) (emphasis added). In Polly, “[t]he will contained a general power of sale only as to the residual estate—not to the specific devises.” 511 So.2d at 756. Thus, the Polly court ordered the specific devises be distributed in kind instead of sold. Id.
[¶ 24.] Another court acknowledged that if the specific devisees “had elected to take the land as land, free from the power of sale, prior to the ... sale by the executor under the power, ... an action would lie in behalf of the parties interested, to enjoin the executor from selling under the power.” Mellen, 34 N.E. at 928. The Mellen court recognized that “[a] sale under such circumstances would at least create a cloud on the title, and an action to enjoin the sale would be an available and
[¶ 25.] Wayne would require testators to draft their wills to limit, restrict, or eliminate the general power of sale provided by statute in order to more clearly express their testamentary intent. He submits that had Glenn wished to exempt the specific devise from Wayne‘s statutory power of sale, Glenn must have done so in his will. We conclude that Glenn has done just that. By providing for the specific devise of the property, he stated his testamentary intent to restrict its sale.
[¶ 26.] Although Wayne claims that he possessed an unrestricted general power of sale, this is not the case. Wayne possessed a statutory power of sale that was subject to restrictions in the will. The will provided for the specific devise of the real property, which inherently prohibits a sale or at least indicates the intent to restrict its sale. In such a case, we should uphold the testator‘s intent. If we were to adopt Wayne‘s position, a personal representative could sell a family heirloom that was specifically devised to a family member as long as he or she was “acting reasonably for the benefit of the estate.” A probate administration is not an eminent domain proceeding where an heir‘s bequest is involuntarily taken from him or her and they receive “just compensation” in return. Being presented by the personal representative with a bank draft may be a sorry alternative to the promise in a will that land which had been in the family for generations would vest in the decedent‘s heirs.
[¶ 27.] The facts of this case strikingly point out what the statutes protect. The homestead at issue was built in 1900 and initially owned by Stephord and Belva Olson, Glenn‘s parents, prior to Glenn becoming the fee owner. Although Glenn‘s homestead was humble by current standards or “dilapidated” as described by the Estate‘s appraiser, it was the only place where Glenn ever lived. He lived his entire life there and farmed the adjoining land. It was his life. It also provided a home for his sister. His nieces and nephews, who he designated in his will as his heirs, visited him there. While the appraiser indicated such homesteads could be bought and sold without difficulty, that fact ignores the family‘s historical and sentimental attachment to this land which transcends monetary valuation. It was not just Glenn‘s investment to be sold when the opportunity for profit presented itself, it was his home. A review of the above statutes makes it clear that the Legislature has intended that protections should be, and are in place in South Dakota to protect a testator‘s intent.
[¶ 28.] The sale should have been voided as the personal representative did not have authority to sell the specifically devised property unless it was necessary to satisfy the debts of the estate or for other valid purposes authorized by the UPC such as where the heirs agree it is for their best interests as well as that of the estate. Wayne identifies no basis which is so meritorious as to override the contents of Glenn‘s will. Thus, today we honor Glenn‘s intent as set forth in his will.
[The decedent] wanted certain land to go to certain people. No two pieces of land are alike. Individual parcels of real property are considered to be so unique that when an action is brought for breach of a contract for sale of land, specific performance may be ordered.
In re Estate of Siebrasse, 2002 SD 118, ¶ 9, 652 N.W.2d 384, 386.
[¶ 29.] In analyzing the purpose of the UPC we concluded that “[p]eople do not go to a lawyer to have a will drawn with the idea that their estate will pass under the intestate succession laws. That is the
[¶ 30.] 2. Whether the sale of personal property was void under
[¶ 31.] James argues that Wayne‘s failure to give advance notice of the public auction voided the personal property sale under
[¶ 32.]
Any interested person desiring notice of any order or filing pertaining to a decedent‘s estate may file a demand for notice with the court at any time after the death of the decedent stating the name of the decedent, the nature of the demandant‘s interest in the estate, and the demandant‘s address or that of the demandant‘s attorney. The demandant shall mail a copy of the demand to the personal representative if one has been appointed. After filing of a demand, no order or filing to which the demand relates shall be made or accepted without notice as prescribed in § 29A-1-401 to the demandant or the demandant‘s attorney. The validity of an order which is issued or filing which is accepted without compliance with this requirement shall not be affected by the error, but the petitioner receiving the order or the person making the filing may be liable for any damage caused by the absence of notice. The requirement of notice arising from a demand under this provision may be waived in writing by the demandant and shall cease upon the termination of the demandant‘s interest in the estate.
(Emphasis added). Because James filed a demand for notice under this statute, he was entitled to advance notice in compliance with
[¶ 33.] In addition,
Not less than fourteen days prior to the closing of any sale of real or personal property of the estate for which the fair market value is not readily ascertainable, the personal representative shall provide written information of the intent to sell to the persons who have filed a demand for notice under § 29A-3-204.
The parties do not dispute that the fair market value of the personal property was not readily ascertainable. Moreover, the “closing” of the sale of personal property would take place at the time of the public auction after the purchaser bids and sub-
[¶ 34.] However, the failure to give notice does not, under the express language of the statutes, void the sale.
The validity of an order which is issued or filing which is accepted without compliance with this [notice] requirement shall not be affected by the error, but the petitioner receiving the order or the person making the filing may be liable for any damage caused by the absence of notice.
Id. Thus, “[i]f the exercise of power concerning the estate is improper, the personal representative is liable to interested persons for damage or loss resulting from breach of fiduciary duty.”
[¶ 35.] Despite the theoretical problems decried by the dissent, in actual application of the UPC statutes, no problems should be encountered, let alone create an “impossible situation for practioners” if the statutes are properly followed. As noted above, for an heir to have standing to challenge the proposed sale, he or she must serve a demand notice upon the personal representative per
[¶ 36.] Here, James argues that he was damaged because he was not given advance notice of the sale and was therefore unable to “protect” his property. However, he asserts no monetary claim, and the trial court concluded that “James Olson did not suffer any losses due to Mr. Wayne
[¶ 37.] 3. Whether the trial court erred in assessing a sanction against the personal representative for failure to give advance notice of the sales.
[¶ 38.] By notice of review, Wayne challenges the trial court‘s imposition of a sanction for failure to give notice of the public auctions. The court, in its bench decision, recognized that a penalty or sanction was not authorized:
[29A-3-715(b)] doesn‘t provide a penalty for violation; and that troubles the court, that there should be a penalty for violating that statute. And the statute doesn‘t prescribe a penalty, but otherwise, if there‘s no penalty for violating that, you know, the court‘s efforts to get people to comply with the statutes are empty. Consequently, the court feels that it needs to craft some kind of a penalty for the failure to comply with that section, and the court‘s determination is that it would be appropriate at this—in this instance to sanction Mr. Wayne Olson ... $1,000.
We agree that
While it is fundamental that we must strive to ascertain the real intention of the lawmakers, it is equally fundamental that we must confine ourselves to the intention as expressed in the language used. To violate the rule against supplying omitted language would be to add voluntarily unlimited hazard to the al-
[¶ 39.] Wayne, as the personal representative, has moved for attorney‘s fees in the amount of $5,080.05 under
[¶ 40.] Reversed and remanded in part and affirmed in part.
[¶ 41.] SABERS and MEIERHENRY, Justices, concur.
[¶ 42.] KONENKAMP and ZINTER, Justices, dissent.
ZINTER, Justice (dissenting).
[¶ 43.] Glenn‘s will, as well as the probate, was governed by the Uniform Probate Code, and the UPC provides a statutory power of sale that was unknown to our pre-existing statutes and the common law. Had Glenn wanted to limit, restrict, or eliminate that power of sale, the UPC requires that Glenn had to provide that limitation in his will.
[¶ 44.] This decision not only fails to follow the Legislature‘s directives in the UPC, it adds new language by amending
Factual Background
[¶ 45.] This case involves an estate that was informally probated. As the personal representative, Wayne determined that the buildings on the estate‘s 132 acre homestead were in such extremely dilapidated condition that they constituted a drain on the estate. It is undisputed, but unacknowledged by the Court, that Wayne did not sell the entire 132 acres. Rather, he sold only the 6.17 acres on which the dilapidated buildings were situated.
[¶ 46.] The real and personal property were sold at separate public auctions. There is no allegation of impropriety in conducting the sales. Although James was not provided with formal notice of the public auctions under
[¶ 47.] In any event, James was provided notice of the filing of the summary of the public auctions and notice of the motion to confirm the sales. He appeared and objected to the confirmation of both sales. The circuit court confirmed the sales finding: (1) the land was a drain on the estate; (2) the sales were conducted in a reasonable manner; and (3) the land brought an exceptional price exceeding market value. Ultimately, the circuit court found, “[t]he evidence is abundant that the sale [of real property] was conducted for a good reason.” These findings are significant because they are unchallenged on appeal and
The Majority‘s View of the Law
[¶ 48.] The majority does not dispute the circuit court‘s findings that both sales
[¶ 49.] With respect to vesting, the Court concludes, “the sale of specifically devised property [is] inconsistent with the specific devisees’ right to receive the property in kind.” Supra ¶ 10. The Court relies on
[¶ 50.] First,
[¶ 51.] Second, although
[¶ 52.] Finally, rather than supporting the Court‘s theory of vesting,
[¶ 53.] Therefore, none of these statutes override the power of the personal representative to administer the estate, including exercising the statutory power to sell when there is a special reason; i.e., it is of benefit to the estate.13 This conclusion is confirmed by Roehr, where this Court recognized that vesting is conditional and subject to the probate of the estate. 2001 SD 85, ¶ 6, 631 N.W.2d at 602. Consequently, today the Court is incorrect in suggesting that specifically devised real property vests in specific devisees such that it voids a sale of property sold under the power of sale granted in
[¶ 54.] With respect to the consistency of a specific devise and a power of sale, the Court fails to acknowledge that we have long held that notwithstanding the conditional vesting in the specific devisee, it “does not make the power of sale repugnant to the specific devise.” Kappenmann, 82 S.D. at 97, 141 N.W.2d at 783. Instead of following precedent, the Court creates a new and “important exception” for specifically devised property. See supra ¶ 17. Even though this “specific devise exception” is not found in Glenn‘s will or the UPC, the Court imposes one on
[¶ 55.] The Court‘s theories of inconsistency and resulting, implied exception are premised upon inapplicable cases. As previously indicated, those cases are cited for the propositions that: (1) “no such power [of sale] exists as to real property specifically devised“; (2) “a general power authorizing the sale or rental of any property which the testator possessed at the time of death applies only to property not specifically devised“; and (3) “real property specifically devised is not subject to general power of sale granted to executors.” See supra ¶ 18 (citing Brown v. Bailey, 2 Fiduc. Rep. 342, 84 Pa. D. & C. 269, 274, 1953 WL 4538, at *3 (1953); In re Estate of Radjenovich, 1991 WL 70304, at *1 (Minn.Ct.App.) (unpublished); In re De Forest‘s Estate, 147 Misc. 82, 88, 263 N.Y.S. 135, 142 (N.Y.Sur.1933); Wilkinson v. Chambers, 181 Pa. 437, 442, 37 A. 569, 569 (Pa.1897); In re Estate of Gamble, 183 So.2d 849, 852 (Fla.App.1966); In re Chaney‘s Estate, 120 Tex. 185, 189, 36 S.W.2d 709, 711 (1931)). None of these cases support the extreme propositions adopted by this Court.
[¶ 56.] The Court‘s first proposition that “no power of sale exists to real property that is specifically devised” comes from a 1952 Pennsylvania trial court case. That case is, however, unsupported by any Pennsylvania case law. It is also clearly distinguishable. In Bailey, the executor sought to eject a defendant who was in possession of real estate by a conveyance from the testator. In analyzing the Pennsylvania Fiduciaries Act of 1949, the court
One of the purposes of the Fiduciaries Act of 1949 undoubtedly is to permit the personal representative to take possession and conserve real estate, not only for the benefit of the heirs or devisees but for the benefit of the estate if it should be necessary to convert it for the purposes of administration and distribution. Possession of this real estate by the executrix, however, could serve no useful purpose in the administration of the estate under the facts existing in this case.
Bailey, 2 Fiduc.Rep. 342, 84 Pa. D. & C. 269, 276, 1953 WL 4538, at *5 (1953). Therefore, Bailey only involved a factual dispute concerning what was in the benefit of the estate. More importantly, by recognizing the personal representative‘s power in some factual cases, Bailey acknowledged the rule that when there is a “useful purpose,” specifically devised property may be sold. Id.
[¶ 57.] The Court‘s second proposition that “a general power authorizing the sale ... of any property which the testator possessed at the time of death applies only to property not specifically devised” is not supported for a number of reasons. First,14 the Court‘s cited authority, Radjenovich, is an unpublished Minnesota Court of Appeals decision. 1991 WL 70304, at *1 (Minn.Ct.App.1991) (unpublished). Under Minnesota law, “[u]npublished opinions of the [Minnesota] Court of Appeals are not precedential.” Minn.Stat. § 480A.08. Second, that specific proposition was only used as a part of a factual determination that a codicil to a will controlled the property in question, and therefore the power of sale in the original will did not apply to the devise of any real property. Finally, this cited proposition was based upon the 1903 decision in In re Scott Will. Scott contains no language even arguably close to the proposition cited by this Court.
[¶ 58.] This Court finally cites Wilkinson v. Chambers, for the proposition that a will cannot be interpreted so as to allow the executor to defeat a specific devise. Wilkinson is a one paragraph Pennsylvania case in which the only issue was whether a devise of property was fee simple or a life estate. Id. at 442, 37 A. 569. Therefore, the language adopted by this Court is taken out of context and is dictum.
[¶ 59.] The Court‘s remaining authorities are not discussed or explained.14 Ul-
Kappenmann
[¶ 60.] This Court has already concluded in In re Kappenmann‘s Estate that a power of sale is not repugnant to a specific devise. 82 S.D. 91, 97-98, 141 N.W.2d 780, 783 (1966) (citing 5 Bowe, William J. and Parker, Douglas H. Page on the Law of Wills, § 45.10).15 Our citation to Page on the Law of Wills specifically explains, “[w]here an express power of sale is given, but the purpose for which it is to be used is not specified, it is held to be a power of sale in order to pay the proceeds to the devisees in lieu of the devise, and, therefore, such a power of sale is not repugnant to the devise of the property in fee.” Id. It should be further emphasized that the exact question in Kappenmann is the question before the Court today: whether “an executor may sell specifically devised real property, under a power of sale in a will [in our case, the analogous power in statute], where such sale is not necessary to pay debts and cost of administration, and where there is no directive in the will to sell such devised property.” 82 S.D. at 93, 141 N.W.2d at 781 (emphasis added). Kappenmann resolved this question holding the property could be sold because the vesting of the property was only conditional, and the specific devise did not defeat the general power of sale. Id. at 97-98, 141 N.W.2d at 783.
[¶ 61.] This Court attempts to distinguish Kappenmann and the cases hereinafter cited in this dissent noting that the will in Kappenmann contained a power of sale and Glenn‘s will did not. Wayne, however, was granted an analogous power of sale by statute, and this Court offers no explanation how the statutory power to sell without notice is different than the power of sale considered in Kappenmann. A careful reading of Kappenmann establishes that the statutory power of sale is not materially different than the power granted by the will in Kappenmann. The statutory power and the power in the will are analogous because: (1) Kappenmann construed a will “where there [was] no directive in the will to sell such devised
[¶ 62.] The Court, however, suggests that other courts recognize “a distinction between a testator granting the power of sale as opposed to a statute,” and in such cases “the specific devise must be distributed in kind.” Supra ¶ 23 (citing In re Estate of Polly, 511 So.2d at 756 and In re Estate of Gamble, 183 So.2d 849). Neither case supports the Court‘s view. Polly is inapplicable because: no statutory power was even considered; although the will in Polly contained a power of sale, it did not concern the property at issue; and Polly construed a Florida statute that, like our pre-UPC law, only allowed the exercise of a power of sale when it was provided by a will. Thus, the issues were not the same, Gamble is distinguishable, and it supports this dissent. See supra n. 14.
[¶ 63.] The Court further suggests that making a specific devise subject to a power of sale may threaten intended specific distributions. The Court goes so far as to propose a red herring that a personal representative “could sell a family heirloom [or land that had been in the family for generations] that was specifically devised ... as long as he or she was acting reasonably for the benefit of the estate.” Supra ¶ 26. This suggestion simply fails to give effect to the language of
[¶ 64.] Testators often give powers of sale that affect specifically devised property without making specific reference to the property. A New York case exhaustively explained why such powers are given and why the benefit to the estate protection is sufficient, even when the devise is for a spouse and children.
Had the intention of the testator been to restrict the power of sale [as is permitted under
Good reasons suggest themselves why the testator might well have wished to confer upon his personal representatives a general power of sale for the purpose of a distribution of his estate among the residuary legatees and devisees. On the death of testator‘s wife the will gave, devised and bequeathed all of the trust estate unto the children of the testator then living and to the issue of any of them who might then be deceased in equal shares per stirpes and not per capita. In case any such taker should be an infant, the acquiring of the title of such would involve a complicated and expensive court proceeding, which the testator might well have wished to avoid. He might also have foreseen discord among the residuary owners and the necessity of resorting to an expensive action in partition with attendant delay in order to obtain a sale of the real property and a division of the proceeds among those entitled thereto. Indeed, it appears that between the date of the making of the contract of sale and the time therein fixed for the passing of title, one of the testator‘s children did actually commence an action in the Supreme Court for a partition of the real property of which decedent died seized, including the contracted premises. Thus the possible fears of the testator that all would not be harmonious among those who would eventually succeed to his real property seem justified by succeeding events. By the power of sale in the will the testator provided a way for the disposal of his estate by his trusted representatives at a nominal expense and thereby sought to save long delay and considerable expense which might otherwise result. Such are the reasons which usually give birth to powers of sale in wills. Certain it is that the testa-
Hutkoff v. Winmar Realty Co., 211 A.D. 726, 728-729, 208 N.Y.S. 25 (N.Y.App.Div.1925).
[¶ 65.] Missouri provides another reason why the power of sale may prevail. In Estate of Basler v. Delassus, 690 S.W.2d 791 (Mo.1985), the specific devisees objected to the sale of the property under a power of sale. The Missouri Supreme Court reversed a lower court‘s holding that the real property in issue “passed from the testatrix to the four devisees and that the personal representative had no authority to convey it elsewhere[.]” Basler, 690 S.W.2d at 793. In rejecting that proposition, the Missouri Supreme Court explained that joint devisees do not have a right to specific enjoyment since any one of them could demand partition. Id. Thus, good reasons exist why powers of sale may be exercised over specifically devised property. Such powers are given to avoid problems relating to discord among heirs, to ease the disposition of property when minors are involved, to thwart expense and complications of partition proceedings, to avoid delay, and to benefit the entire estate.
No “Inconsistency” or “Inherent Conflict” Exists
[¶ 66.] For the foregoing reasons, and notwithstanding this Court‘s belief that confirming Glenn‘s estate sale would “reverse” a “century old doctrine,” see supra ¶ 12, the opposite is true. For more than a century, the law has recognized no repugnancy between a devise in fee and a power of sale (even when the specific devise was intended for the surviving spouse and children).
[T]here can be no doubt of the validity of the power of sale. There is no repug-
nancy between a devise in fee and a subsequent power of sale given to the executor for the benefit of the devisees. This is a common incident of testamentary dispositions. The title to the lands vested in the widow and children of [decedent] under the devise, and was a fee, subject to the power of sale given to the executor. In case of a sale under the power the title of the devisees in the land would be divested and an interest in the proceeds substituted.
Mellen v. Mellen, 139 N.Y. 210, 219-20, 34 N.E. 925, 928 (1893) (emphasis added) (citing Crittenden v. Fairchild, 41 N.Y. 289 (1869)). The cases have consistently held that specific devisees take subject to a representative‘s power of sale.
Undoubtedly, under the terms of the will of the testator, his real property, upon the termination of the trust for the benefit of his widow, vested in his children and the issue of any of them then deceased, per stirpes. But such vesting of title was subject to the exercise by plaintiffs of the power of sale contained in said will.
Hutkoff, 211 A.D. at 728-729, 208 N.Y.S. 25. See also Cusack v. Tweedy, 126 N.Y. 81, 26 N.E. 1033 (1891); Hetzell v. Easterly, 66 Barb. 443 (N.Y.1867); In re McLaughlin‘s Estate, 193 Misc. 192, 82 N.Y.S.2d 784 (N.Y.Sur.1948); Weinstein v. Hunter, 276 A.D. 471, 476, 96 N.Y.S.2d 1 (N.Y.App.Div.1950).
[¶ 67.] Similarly, for almost 100 years, Kentucky has recognized that a power of sale is not inconsistent with a specific devise.
[A] power given by will to an executor to sell all or any portion of the residuary estate is not affected by the devise of such residuary share; for the devise is to be construed as subject to the power of sale. Nor is a power of sale in executors necessarily inconsistent with a specific devise in fee.
Stofer v. Stiltz, 179 Ky. 399, 200 S.W. 631, 632 (1918) (quoting 31 Cyclopedia of Law and Procedure 1049 (1909)). Stofer explained:
[When real property] is given in clear language sufficient to convey an absolute fee ... [and][t]he power given the executor to sell and convey is not in vague, general, or indefinite expressions ... [t]he only construction necessary is to reconcile, if possible, any inconsistency in the two positive and unambiguous sections; and this can be done upon authority by holding that ... the devisees took the [real property] in fee, subject to the power of sale given to the executor....
Id. See also Davis v. Scavone, 149 Me. 189, 192, 100 A.2d 425, 426-27 (1953) (concluding that devises are subject to power of sale).
[¶ 68.] Although Glenn‘s will was governed by the UPC, the UPC did not change this doctrine. The UPC only makes the power of sale statutory. Therefore, under the UPC, testators are now required to draft their wills to explicitly limit, restrict, or eliminate this power of sale if that is their intent.
[¶ 70.] In the case before the Court today, one of the devisees apparently did not agree that the dilapidated buildings were a drain on the estate and should be sold. The personal representative, exercising his statutory power of sale—which is materially identical to the common-law power of sale—presented that dispute to the circuit court. The circuit court found that it was in the best interest of the estate and therefore concluded that there was authority to sell under
[¶ 71.] Although the caselaw, our own precedent, and the UPC require this con-
clusion, this Court finally contends that the statutory power of sale is only exercisable when the heirs agree or “it [is] necessary to satisfy the debts of the estate.” Supra ¶ 28. In doing so, the Court overlooks our decision in Kappenmann and the broader language in
[¶ 72.] California Probate Code § 754 is similar to
[¶ 73.] Until today, South Dakota followed the UPC and the caselaw underlying the UPC and powers of sale. The effect of today‘s decision, however, is that even if advance notice of sale is given, there is no power to sell specifically devised real or personal property under
[¶ 74.] KONENKAMP, Justice, joins this dissent.
STATE of South Dakota, Plaintiff and Appellee, v. Tory TIEGEN, Defendant and Appellant.
No. 23759.
Supreme Court of South Dakota.
Decided Jan. 16, 2008.
Argued On Oct. 3, 2007.
