Elizabeth Roberts v. Eric Roberts, as trustee of the W. David Roberts Revocable Trust, Dave Roberts Growth & Ventures, Inc., and Eric Roberts as personal representative of the Estate of William David Roberts

Supreme Court of Iowa·Decided May 10, 2024·No. 23-1131·Published

Opinion

IN THE SUPREME COURT OF IOWA No. 23–1131

Submitted April 10, 2024—Filed May 10, 2024

ELIZABETH ROBERTS, Appellant, vs.

ERIC ROBERTS, as trustee of the W. DAVID ROBERTS REVOCABLE TRUST, DAVE ROBERTS GROWTH & VENTURES, INC., and ERIC ROBERTS as personal representative of the ESTATE OF WILLIAM DAVID ROBERTS,

Appellees.

Appeal from the Iowa District Court for Shelby County, Craig M.

Dreismeier, Judge.

A surviving spouse appeals a probate court order enforcing a postnuptial modification of a premarital agreement affecting the spouse’s elective share.

REVERSED AND REMANDED.

Mansfield, J., delivered the opinion of the court, in which all participating

justices joined. Christensen, C.J., took no part in the consideration or decision of the case.

Jordan T. Glaser and Brody D. Swanson of Peters Law Firm, P.C., Council Bluffs, for appellant.

Andrew B. Howie of Shindler, Anderson, Goplerud & Weese, P.C., West Des Moines, for appellees.

MANSFIELD, Justice.

I. Introduction.

As the saying goes in many marriages, “what’s mine is yours.” But the same is not necessarily true for couples who decide to sign a premarital agreement before getting married. Under Iowa law, couples are permitted to make agreements before marriage that explain how their estates are to be divided in the event of death or divorce. If a couple has a properly executed premarital agreement, their desired plan for property division will normally control. But does Iowa law allow the couple to make changes to the agreement after they have been married?

In this case, a couple executed a valid premarital agreement shortly before their marriage. Under the agreement, each spouse waived their statutory elective share, but they also agreed that each would take one-third of the other’s net real property interests at the time of death. Twenty-four years and many real property investments later, the parties executed a new agreement prepared by the husband’s attorney in the form of a “partial revocation” of the premarital agreement. Under the partial revocation, the parties’ waiver of elective share

remained in effect, but the parties relinquished their one-third share in each other’s real property investments at the time of death. Simultaneously, the wife

received approximately $15,000 cash and $50,000 in debt repayment or forgiveness from the husband, plus a monthly living allowance for as long as the couple remained married.

Several years later, after the husband died, the wife contested the validity of this partial revocation. The district court rejected her challenge and enforced the partial revocation. The wife’s case now comes to us on appeal. Based on our

examination of Iowa law—specifically Iowa Code sections 596.7 and 597.2—we conclude that this kind of postmarital amendment to a premarital agreement

relating to inchoate dower interests in property is not enforceable. Therefore, we reverse the district court’s judgment and remand for further proceedings.

II. Background Facts and Proceedings.

A. The Premarital Agreement and the Marriage. David and Elizabeth Roberts were married on April 1, 1993, in Iowa. They had met in 1991. At the time of their marriage, David was fifty-four years old, and Elizabeth was fifty-one years old. David sold insurance, provided investment advice, and owned real estate and cattle. Elizabeth had a high school education and had done a variety of jobs, most recently as an interior designer. Both David and Elizabeth had offspring from prior marriages.

About two weeks before their marriage, at David’s request, the couple executed an “antenuptial agreement,” otherwise known as a “prenuptial agreement” or a “premarital agreement.” No party contests the validity of this agreement.

The agreement provided in paragraphs one and two that David and Elizabeth would each retain their own premarital property, including “all interest, rents and profits which may in time accrue or result in any manner

from increase in value, or be collected for the use of the same in any way.”

In addition, paragraph four of the agreement provided that upon the death

of either one, “the survivor shall have and make no claims of any kind against the estate of the other for any reason or by way of any right as the surviving spouse of such decedent for dower, statutory right, election, right of support, right of inheritance and homestead rights . . . except as specifically provided in paragraph 8.” Paragraph eight in turn stated that the surviving spouse would be “awarded and receive the housing facility occupied by the Parties at the time of

such death regardless of ownership thereof” and “one-third of ALL (net equity in) real property of the deceased.” The one-third interest would “include any real

estate either party leaves to the other at death by will” but exclude any personal property. Paragraph ten added that David intended to acquire additional real estate and that Elizabeth would receive at least a ten percent share in that real estate—or more if she contributed capital toward the acquisition.

During the marriage, Elizabeth took part in the renovation and repair of the residential rental properties owned by David. She also “handled most of [the] mail and bills.” Elizabeth further described herself as “the chief cook and bottle washer.”

In 2002, David executed a will. The will left the entire estate to a revocable trust. At that time, there were various beneficiaries of the trust, including Elizabeth, David’s son Eric, David’s daughter Diana, and grandchildren of David and Elizabeth. However, in 2011, David amended the trust. The amended trust made Eric the trustee and, practically speaking, Eric became the sole beneficiary of the trust upon David’s death.

B. The Partial Revocation Agreement. In 2016, David was making arrangements with his attorney to have a warranty deed prepared so that certain real property could be transferred from Elizabeth and himself to the revocable

trust. At that time, his attorney advised him privately that Iowa law had changed such that a spouse’s elective share was no longer effective against property held

in a revocable trust under certain circumstances.1 The attorney explained that in their case, though, Elizabeth would still be entitled to a one-third share of the real property in the revocable trust because of the antenuptial agreement.

About eight months later, in May 2017, Elizabeth prepared a note that stated in part,

After much discussion, months of anxiety, and guilt trips, and desperation, I have come to the conclusion that the situation in our

1See 2015 Iowa Acts ch. 125, § 4 (codified at Iowa Code § 633.238 (2016)).

home is not going to improve. David’s animosity toward my grandsons and other members of my family leaves me in the middle of a[n] unpleasant situation. I can honestly say he has good reason to feel as he does. However I am 76 years old and I would like to live in peace. I have several health problems . . . . I would like to enjoy the time I have left. In order to eliminate the debt I have a[c]quired and to protect David’s int[e]rest, I will waive my dower rights to all properties, investments, and holdings . . . . David and I have disc[u]ssed the amount I will need to eliminate the debts. The amount is $62,500.00. If David wishes to consider this a pre-divorce agreement, I would like to have the 800 a month household allowance until we can come sign this agreement. [It is] imper[a]tive that this is taken care of quickly, as I plan to travel to Texas in June.

David provided this note to his attorney, asking, “Is this workable [and] decent for me?”

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Elizabeth Roberts v. Eric Roberts, as trustee of the W. David Roberts Revocable Trust, Dave Roberts Growth & Ventures, Inc., and Eric Roberts as personal representative of the Estate of William David Roberts, (iowa 2024).

Elizabeth Roberts v. Eric Roberts, as trustee of the W. David Roberts Revocable Trust, Dave Roberts Growth & Ventures, Inc., and Eric Roberts as personal representative of the Estate of William David Roberts (Elizabeth Roberts v. Eric Roberts, as trustee of the W. David Roberts Revocable Trust, Dave Roberts Growth & Ventures, Inc., and Eric Roberts as personal representative of the Estate of William David Roberts) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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