Estate of Bell v. Olmstead

2000 OK CIV APP 117, 13 P.3d 86, 71 O.B.A.J. 3043, 2000 Okla. Civ. App. LEXIS 79
CourtCourt of Civil Appeals of Oklahoma
DecidedMay 19, 2000
DocketNo. 92,445
StatusPublished
Cited by1 cases

This text of 2000 OK CIV APP 117 (Estate of Bell v. Olmstead) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Bell v. Olmstead, 2000 OK CIV APP 117, 13 P.3d 86, 71 O.B.A.J. 3043, 2000 Okla. Civ. App. LEXIS 79 (Okla. Ct. App. 2000).

Opinions

OPINION

ADAMS, Judge:

T1 Randy Olmstead was a neighbor and friend of David and Barbara Bell and was in their home shortly after Barbara shot David in January of 19983. David Bell did not survive, and Barbara was eventually arrested and charged with murder. During the next six years, Olmstead was deeply involved in trying to help the family, which included the Belis' two children-Erin, who was a minor at that time, and Carter. David's will was filed for probate, and the court appointed Olm-stead as special administrator. Later that year, the court appointed him as Personal Representative of the estate, and Olmstead received a fee of $75,000 for his services as special administrator. Because of the circumstances of David's death, the atmosphere was quite contentious, and Olmstead came into some criticism because of his relationship with the Bells.

[88]*8812 Eventually, Barbara, Carter, and Erin reached an agreement concerning how the assets which passed upon David's death, only a small portion of which were technically assets of the estate, would be divided. Under that agreement, Carter and Erin agreed to pay equally the estate and gift taxes to the extent the estate assets were not sufficient to pay them. The taxing authorities demanded more tax than the initial return indicated, and based, at least in part, on Olmstead's recommendation, the estate paid the additional tax and commenced a legal action for refund, challenging the taxing authorities' view. In order to do so, Carter and Erin each furnished $400,000 from their funds because the estate had insufficient assets to pay the entire amount of additional tax. The refund claim was settled in the estate's favor, and the taxing authorities refunded approximately $770,000, including interest.

83 Olmstead filed his final accounting and petition for approval of fees. Carter filed an objection to the final account specifically objecting to the amount of the personal representative's fee and attorney fees which had been requested. At the hearing on the final account, Carter withdrew his objection to the attorney fees. At that hearing, the trial court awarded Olmstead a personal representative fee of $127,029. Within thirty days of that order, Carter, along with his trustee, John Turner,2 filed a motion requesting the trial court to reduce the amount of that fee. The trial court granted Carter's request, reducing Olmstead's fee to $48,145. The trial court also awarded Olmstead $5,000 in legal fees incurred by him in defending his first 'application for attorney fees and $18,000 for attorney fees for defending his request for the personal representative's fee. Erin took no position concerning any of these issues.

T4 Carter's appeal involves the standard used by the trial court to set Olmstead's fee and the attorney fees awarded to Olm-stead for his attorney's services in defending Carter's objection to Olmstead's personal representative fee and attorney fee request. Olmstead's appeal raises questions concerning the trial court's order reducing Olm-stead's fee in response to Carter's motion. This a case of equitable cognizance, and we must affirm the trial court's decision unless it is against the clear weight of the evidence or contrary to law. Matter of Estate of Bartlett, 1984 OK 9, 680 P.2d 369.

CARTERS APPEAL

Personal Representative's Fee

5 According to David's will, "[alny Personal Representative shall be entitled to reasonable compensation for services in administering and distributing the Estate or trust property, and to reimbursement for expenses." Citing this provision, Carter contends the trial court erred in failing to base Olmstead's fee on what was "reasonable" under the circumstances rather than awarding Olmstead the statutory commission provided in 58 0.9.1991 § 527. According to § 527, the fee of the personal representative must be calculated in accordance with its provisions, "[when no compensation is provided by the will, or the [personal representative] renounces all claim thereto."

T6 Although Carter concedes that Olmstead announced on the day of trial concerning his fee that he renounced any claim to compensation under the will, he argues that this renunciation was ineffective because "it would seem ... that any 'renunciation' regarding the terms of the Personal Representative's service to the Estate must come at the beginning of his administration, and not at the end." Carter cites no authority to support this argument, and there is nothing in the statutory language which requires the renunciation contemplated by the statute to be made at the outset of the administration. We will not consider assignments of error which are not supported by authority. Peters v. Golden Oil Co., 1979 OK 123, 600 P.2d 330. The trial court did not err in applying § 527 to determine Olmstead's fee.3

[89]*89T7 Even if the trial court was correct in applying § 527, according to Carter, it should not have exercised its discretion under § 527 to award an additional allowance, up to the amount of commissions otherwise allowed by § 527, for extraordinary services. The trial court heard evidence of the unique cireumstances involved in this probate and the manner in which those cireumstances increased the complexity of administering the estate and dealing with the individuals involved. Moreover, the record supports the trial court's conclusion that Olmstead was in large measure responsible for saving the estate and the heirs at least $770,000 in federal and state estate taxes which other experts had suggested they would be unable to avoid. The trial court's conclusion that Olmstead had performed extraordinary services is not against the clear weight of the evidence and will not be disturbed.

Attorney Fees

18 The trial court approved Olmstead using $12,000 of estate assets to pay his attorneys for services rendered in connection with the dispute over his fee as the personal representative, and Carter argues this was improper. He contends that it was improper for the trial court to allow the estate to pay Olmstead's attorneys for "defending a bloated fiduciary fee application.4

19 As a general rule, personal representatives of an estate are entitled to reimbursement from the estate for the cost of employing an attorney, as they would be for other necessary expenses of administration. Matter of Estate of Bartlett, 1984 OK 9, ¶ 26, 680 P.2d at 379. This rule would not be abrogated simply because the heirs took a position opposite to that of the personal representative. See, Matter of Edwards Irrevocable Trust, 1998 OK CIV APP 144, 966 P.2d 810.

{10 Determining the appropriate compensation for the personal representative differs only slightly from determining the compensation for any other person engaged by the estate to perform services. Both actions are related to the administration of the estate and the preservation and care of the estate assets.

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Bluebook (online)
2000 OK CIV APP 117, 13 P.3d 86, 71 O.B.A.J. 3043, 2000 Okla. Civ. App. LEXIS 79, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-bell-v-olmstead-oklacivapp-2000.