Estate of Boyd

98 Cal. App. 3d 125, 159 Cal. Rptr. 298, 1979 Cal. App. LEXIS 2261
CourtCalifornia Court of Appeal
DecidedOctober 26, 1979
DocketCiv. 54877
StatusPublished
Cited by4 cases

This text of 98 Cal. App. 3d 125 (Estate of Boyd) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Boyd, 98 Cal. App. 3d 125, 159 Cal. Rptr. 298, 1979 Cal. App. LEXIS 2261 (Cal. Ct. App. 1979).

Opinion

Opinion

ALARCON, J.

We affirm the judgment of the probate court distributing property to the assignee of appellant, an heir of the estate of Sholts H. Boyd, deceased. In so doing, we hold that, in assessing the reasonableness of the consideration paid for an assignment of an interest in a probate estate, the lower court properly looked to the value of the estate interest on the date the assignment was made.

This appeal raises questions concerning the proper determination by a probate court, under Probate Code section 1020.1, 1 of the value of assigned property. The question presented appears to be one of first impression in California. Also challenged on appeal is the propriety of the court finding that the agreement in question was not the result of the imposition of undue influence on the assignor.

Probate Code section 1020.1 provides for judicial review of the merits of assignments transferring an interest in a probate estate. On the petition of any person interested in the estate, or on the court’s own *129 motion, the court may inquire into the consideration for the assignment, the amount of charges paid by the assignor, and the circumstances surrounding the execution of the assignment. If the court finds that the consideration is grossly unreasonable or that the assignment was obtained by duress, fraud, or undue influence, the court may refuse distribution, “except upon such terms as it deems just and equitable.” (Prob. Code, § 1020.1.) In the instant case, appellant assignor contends that the consideration for the assignment was grossly unreasonable and that the assignment was obtained by undue influence. Therefore, appellant argues that under either theory the court order affirming the assignment must be reversed.

Summary of the Facts

Sholts H. Boyd died testate on October 8, 1973. Decedent’s will and codicil, executed in 1969, were admitted to probate. An inventory and appraisement of the estate filed in September 1974, showed assets in the approximate value of $150,000. Decedent’s property consisted of cash, promissory notes, and seven parcels of income-producing real property in Venice, California.

Appellant, Hiram Boyd, was a nephew of decedent. Decedent’s will specifically devised to him real property located at 548 Westminster Avenue, Venice, California. At the time of his uncle’s death in October 1973, appellant was a resident of Texas. Upon learning that he, his brother, and his sister were mentioned in his uncle’s will, he came to Los Angeles. He stayed in Los Angeles for approximately one month, at the end of which time he was informed that his mother was ill and in need of money. He testified that he attempted to get an advance from the money in the estate from the estate’s attorney and that he contacted Cash for Heirs. Both attempts were unsuccessful. At that time, he was introduced to respondent, Joseph A. Baker, a real estate broker. Baker testified that he offered to buy the Venice real estate from appellant for $16,500. Appellant informed him that he was in urgent need of $3,000 immediately, and respondent agreed to open an escrow on condition that appellant receive $3,000 on opening of escrow and the balance of the purchase price when escrow was closed.

Sharon E. Martin testified that she was an escrow officer with Santa Monica Bank. On December 17, 1973, appellant and respondent came into her office and asked that she open escrow on the Venice property. *130 Respondent gave her verbal instructions concerning the documents to be prepared and handed her some written instructions. Mr. Boyd was present but did not speak during this transaction. She prepared escrow instructions and a grant deed and was given a copy of an assignment. All three documents were signed in her presence by Mr. Boyd and Mr. Baker.

Dr. Phillip Weise, a clinical psychologist, testified that he administered certain tests to appellant and concluded that he had the ability to read at the sixth-grade level. He evaluated the documents signed by appellant in this case and concluded that they required generally 10th to 12th grade level reading ability. He testified that he would estimate that appellant’s IQ is in the bottom 25 percentile. Appellant testified that he did not read or attempt to read any of the documents concerning the sale of the property. They were handed to him, he was instructed to sign, and he did so.

With respect to the value of the property purchased, Edward Kraft testified on behalf of appellant. He is a real estate broker practicing in the West Los Angeles-Brentwood area. He estimated the value of the property on the date of the assignment in question at $26,000. He testified that on the date of hearing, March 29, 1977, ,the property was worth $51,500. Rodger Spero testified on behalf of respondent. He is a real estate broker with offices in Venice. He testified that at the time of the assignment, the property in question was worth approximately $16,000, give or take $1,000. The inheritance tax referee appraised the real property at $16,500.

The Court Selected the Correct Valuation Date for Purposes of Assessing the Propriety of the Assignment.

The trial court entered the following findings of fact: “That the market value of the real property devised to petitioner was, in December 1973, the time of the said agreement, $16,500,. . .

“That the consideration given the petitioner was not grossly unreasonable.”

Appellant assumes, as do we, that although not expressly so stated, the court used the $16,500 valuation in reaching its conclusion that the consideration was not grossly unreasonable. Appellant contends that the court should have measured the adequacy of the consideration by com *131 paring the purchase price with the value of the property on the date the estate was distributed.

The validity of Probate Code section 1020.1 is well established. (See, for example, Burchell v. Strube (1955) 43 Cal.2d 828, 836 [279 P.2d 1]; Estate of McPherson (1949) 94 Cal.App.2d 906, 909 [212 P.2d 41]; Estate of Simmons (1963) 217 Cal.App.2d 580, 586 [31 Cal.Rptr. 861].) And the courts have recognized that the probate judge is empowered to give much stricter scrutiny to the fairness of consideration than would be the case under ordinary contract principles. (Estate of Freeman (1965) 238 Cal.App.2d 486, 488-489 [48 Cal.Rptr. 1].) Appellant contends that the Freeman mandate that the court inquire into the reasonableness of “value received, in relation to the value given” (id. at p. 490) requires an assessment of the value of what the assignor gave up—the value of the property on the date of distribution.

In support of this contention, appellant relies on cases wherein devisees assign their right to take all of the residue of an estate. In those cases, the assignments were found void for lack of consideration based on the value of the residue of the estate as it became known after the assignment was executed.

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Cite This Page — Counsel Stack

Bluebook (online)
98 Cal. App. 3d 125, 159 Cal. Rptr. 298, 1979 Cal. App. LEXIS 2261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-boyd-calctapp-1979.