Estate of Sena J. Wiebke, by Monte Keller, Special v. Keith Wiebke

CourtCourt of Appeals of Iowa
DecidedJanuary 24, 2024
Docket23-0186
StatusPublished

This text of Estate of Sena J. Wiebke, by Monte Keller, Special v. Keith Wiebke (Estate of Sena J. Wiebke, by Monte Keller, Special v. Keith Wiebke) is published on Counsel Stack Legal Research, covering Court of Appeals of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Sena J. Wiebke, by Monte Keller, Special v. Keith Wiebke, (iowactapp 2024).

Opinion

IN THE COURT OF APPEALS OF IOWA

No. 23-0186 Filed January 24, 2024

ESTATE OF SENA J. WIEBKE, by MONTE KELLER, Special Executor, Plaintiff-Appellant,

vs.

KEITH WIEBKE, Defendant-Appellee. ________________________________________________________________

Appeal from the Iowa District Court for Butler County, James M. Drew,

Judge.

The special executor of an estate appeals the district court’s order denying

a petition to set aside the transfer of real property. AFFIRMED.

Matthew J. Hemphill of Bergkamp, Hemphill & McClure, P.C., Adel, for

appellant.

D. Raymond Walton, Waterloo, for appellee.

Considered by Bower, C.J., and Buller and Langholz, JJ. 2

BOWER, Chief Judge.

The Estate of Sena Wiebke, by and through special executor Monte Keller,

appeals the district court’s order denying a petition to set aside the transfer of real

property claiming undue influence. Upon our review, we affirm.

I. Background Facts and Proceedings

At the time of her death, Sena Wiebke owned a house and roughly ninety-

five acres of farmland (“properties”) in Allison, Iowa. She was survived by two

children, Keith, and Joan.

In 2010, Wiebke executed a general power of attorney, naming Keith as her

attorney-in-fact. Keith remained in this position until Wiebke’s death.

In 2016, Wiebke began having health issues. She managed to remain in

her home until 2019, with help from Keith and his ex-wife, who assisted her with

finances, groceries, and medication. Meanwhile, Wiebke’s relationship with Joan

soured, culminating in Wiebke requesting in the of fall 2016 that Joan no longer

contact her.

In June 2017, Keith contacted attorney Ethan Epley on Wiebke’s behalf to

draft two quitclaim deeds transferring ownership of her properties to Keith. Wiebke

hoped by doing so she could avoid probate and qualify for Medicaid benefits. On

June 28, Epley met with Wiebke in her home to discuss the quitclaim deeds. Epley

testified he asked Keith to leave the room and had a candid conversation with

Wiebke about transferring ownership of her properties. Wiebke expressed she

was grateful to Keith for caring for her. Wiebke also shared she was concerned

Joan’s creditors may be able to force a sale of the home due to Joan’s 1996

conviction for mail fraud and money laundering. 3

With deteriorating health, Wiebke moved to a nursing facility. During her

time there, Wiebke made clear to staff she did not want Joan to visit. In January

2019, nursing facility administrator Heather Sells received a letter, dated

October 17, 2016, in which Wiebke made this stance apparent. After receiving the

letter, Sells entered it into Wiebke’s file. Sells and the facility’s director of nursing

followed up with Wiebke in person to verify she did not want Joan to visit, which

Wiebke confirmed. Betty Schmidt, a social worker, followed up with Wiebke on

this issue three more times in early 2019. Randi Derifield, another social worker,

followed up with Wiebke on this issue later that year. On all occasions, Wiebke

maintained she did not want Joan to visit.

The nursing facility sent Joan letters on multiple occasions, informing her of

Wiebke’s wishes. The facility sent eight letters by certified mail, all returned as

Joan did not pick them up. Finally, the facility sent the letter by standard mail.

Neither Joan nor her husband ever visited the facility.

Wiebke died in December 2019. A will executed by Wiebke in May 2006

was admitted to probate. The will distributed Wiebke’s home to her five

grandchildren in equal parts, half of her real property to Keith, and the remaining

half of her real property equally to Keith and Joan. Joan’s interest was dispersed

subject to a trust with a spendthrift clause.

Joan died one year later, survived by three children. In May 2021, one of

the children, Monte Keller, sought appointment as special executor of the Wiebke

estate. In December, he gained authority to investigate whether the transfer of

property to Keith was the result of undue influence. In January 2022, Keller filed

a petition raising this claim. 4

Following a hearing, the district court entered an order finding although

there was a confidential relationship between Keith and Wiebke, Keith’s efforts to

care for Wiebke “belie an intention to wrongfully procure an improper favor.” The

district court also found “Wiebke knew what she was doing and had legitimate,

rational reasons for doing it.” The court dismissed Keller’s petition. Keller, in his

role as special executor of Wiebke’s estate, appeals the court’s order.

II. Standard of Review

Because this action is in equity, our standard of review is de novo. Iowa R.

App. P. 6.907. We give weight to the fact findings of the district court, particularly

as to credibility of witnesses, but we are not bound by them. Iowa R. App.

P. 6.904(3)(g).

III. Analysis

A claim of undue influence consists of four elements:

(1) The [grantor] must be susceptible to undue influence, (2) opportunity [on the part of the grantee] to exercise such influence and effect the wrongful purpose must exist, (3) a disposition [on the part of the grantee] to influence unduly for the purpose of procuring an improper favor must be present, and (4) the result must clearly appear to be the effect of undue influence.

In re Est. of Herm, 284 N.W.2d 191, 200–01 (Iowa 1979). If the party challenging

transfer of property can show a fiduciary or confidential relationship existed, the

transfer is considered presumptively fraudulent. Mendenhall v. Judy, 671

N.W.2d 452, 454 (Iowa 2003). “[T]he burden of proof shifts to the grantee to

negate a presumption of undue influence by clear, convincing, and satisfactory

evidence.” Id. at 454–55. The grantee must show he “acted in good faith 5

throughout the transaction and the grantor acted freely, intelligently, and

voluntarily.” Jackson v. Schrader, 676 N.W.2d 599, 605 (Iowa 2003).

The parties agree Keith had a confidential relationship with Wiebke because

he was her attorney-in-fact. Accordingly, we must presume the transfer was

fraudulent, absent clear and convincing evidence to the contrary.

Wiebke and Joan were, as the district court stated, “for all practical

purposes, estranged from one another.” Wiebke consistently expressed concerns

that Joan’s creditors could reach the properties through the probate process. Joan

rarely corresponded with Wiebke, while Keith took care of her day-to-day needs.

The record establishes without Keith and his ex-wife, Wiebke would not have been

able to live in her home as long as she did. As the court observed, “The effort

required of Keith is not lost on the court. Given Joan’s absence and Keith’s

undertaking in helping their mother, it is understandable [Wiebke] would choose to

favor him by giving him her real estate.” Under these circumstances, it is not

surprising she wanted to transfer the properties to Keith. The transfer

accomplished two goals: protecting the properties from Joan’s potential creditors

and rewarding Keith for caring for Wiebke as she aged.

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Related

Mendenhall v. Judy
671 N.W.2d 452 (Supreme Court of Iowa, 2003)
Jackson v. Schrader
676 N.W.2d 599 (Supreme Court of Iowa, 2003)
Matter of Estate of Herm
284 N.W.2d 191 (Supreme Court of Iowa, 1979)

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Estate of Sena J. Wiebke, by Monte Keller, Special v. Keith Wiebke, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-sena-j-wiebke-by-monte-keller-special-v-keith-wiebke-iowactapp-2024.