Estate of Stellwag v. Kennedy

817 S.W.2d 466, 1990 Mo. App. LEXIS 1783, 1990 WL 197713
CourtMissouri Court of Appeals
DecidedDecember 11, 1990
DocketNo. WD 42784
StatusPublished
Cited by2 cases

This text of 817 S.W.2d 466 (Estate of Stellwag v. Kennedy) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Stellwag v. Kennedy, 817 S.W.2d 466, 1990 Mo. App. LEXIS 1783, 1990 WL 197713 (Mo. Ct. App. 1990).

Opinion

TURNAGE, Judge.

Mary Ellen George is the independent personal representative of the estate of Arthur Stellwag, II. George filed her statement of account and schedule of proposed distribution. Ollie Kennedy, the guardian and conservator of the minor dev-isees under the will of Stellwag, filed her objections. After a hearing, the court disallowed some expenses and allowed others. Both Kennedy and George appeal. Affirmed in part and reversed and remanded in part.

Arthur Stellwag died on February 17, 1988. His will was executed while Stell-wag was a resident of North Carolina, but at the time of his death Stellwag was a resident of Platte County, Missouri. The will appointed Mary Ellen George, Stell-wag’s sister, as the personal representative. On February 22, 1988, the court appointed George as the independent personal representative. George did not retain a Missouri lawyer but requested her cousin, Shirley Burgoyne, an attorney in Michigan, to represent her in the estate proceedings.1

The largest item in the statement of account to which Kennedy objected was the payment to Stellwag’s parents of $12,-108.59 for money they claimed was due from loans made to Stellwag. The court found that $11,195.97 should not have been paid because that amount was barred by the Statute of Limitations. George appeals from that order.

The will specifically devised a 1987 Trans Am automobile to Linda Martha, one of Stellwag’s daughters who was 15 at the time of Stellwag’s death. The will directed that the devise to any child who was under the age of 21 at the time of Stellwag’s death was to be held in trust for that child and named George as the trustee. The automobile was valued in the inventory at $13,000 but Stellwag had placed a lien on the automobile prior to the execution of his will. The amount of the lien was $17,-106.12 and George paid that amount from estate funds. The will specifically devised real estate in Colorado to another daughter, Stacey Irene, who was 13 at the time of Stellwag’s death. The land was subject to a lien which had been placed thereon by Stellwag prior to the execution of his will. George paid the balance of said lien in the amount of $2,571.96 and the court allowed George credit for that expenditure. George did not seek court advice or consent for the payment of either lien.

George stored the automobile and other items of personal property in a storage facility in Missouri and paid $80 per month rental on such storage. Kennedy objected to that expense but the court approved.

Kennedy also objected to the allowance to George of any compensation because of her failure to discharge her fiduciary duty to the estate in improperly paying the parents’ claim and in hiring a Michigan attorney and in storing unproductive property. The court overruled such objection and allowed George a fee of $2,500 plus travel expenses and miscellaneous expenses in the approximate amount of $1,200.

The court allowed the personal representative credit for the payment of $3,543.84 to Donald Witt for representing George in the hearing on the objections filed by Kennedy and allowed George credit for $236 for an airline ticket which she purchased to return to Missouri for a hearing on the objections, but which she could not use because the hearing was continued. Kennedy appeals from the order overruling her objection to all of these items.

[468]*468APPEAL OF MARY GEORGE

The parents of Arthur Stellwag filed a claim in which they alleged that Stellwag was indebted to them in the amount of $12,108.59. Evidence adduced on the claim revealed that the parents had paid various bills on behalf of Stellwag between 1978 and October, 1984. The court applied the North Carolina Statute of Limitations of three years and held that any amount paid prior to three years before the filing of the claim was barred. The evidence revealed that practically all of the money paid by the parents went to third parties on behalf of Stellwag.

The parties agree that the law of North Carolina applies because the transactions between Stellwag and his parents occurred in North Carolina while he was a resident of that state. George relies on Phillips and Jordan Investment Corp. v. Ashblue Co., 86 N.C.App. 186, 357 S.E.2d 1 (1987), in which it was held that the three year statute of limitations does not begin to run when no time for repayment is specified, until a reasonable time after money is loaned because the debtor has a reasonable time in which to make repayment. George contends that a reasonable time for Stell-wag to make repayment had not passed by the time of his death because Stellwag was unable to make repayment. In short, George argues that a reasonable time does not begin to run until the debtor has the ability to make the repayment. Phillips and Jordan does not hold that an ability to repay must be shown before a reasonable time can begin. It is evident that such could not be the rule because in some cases a person would never be able to repay with the result that a reasonable time would never begin to run.

Kennedy contends that since the claim is based on payments made by the parents to third parties on behalf of Stellwag the general rule stated in 54 C.J.S. Limitations of Actions § 158 pgs. 204-205 (1987) should apply. That rule states that when payment is made to a third person at the request of another the statute of limitations runs from the time of payment. No North Carolina case has been cited or located bearing on this question but the rule stated in C.J.S. appears to be the general rule and will be applied in the absence of North Carolina authority to the contrary.

The court could have found that the statute of limitations began at the time payment to the third party was made and that such payments which were made more than three years prior to the filing of the claim were barred. By § 516.180, RSMo 1986,2 the North Carolina Statute of Limitations will be applied in this state. The court correctly held that George could not take credit for $11,195.97 of the total paid to the parents.

APPEAL OF OLLIE KENNEDY

Kennedy has appealed from the action of the court in allowing George to take credit for $17,106.12 paid to satisfy the lien on the Trans Am and the sum of $2,571.96 paid to satisfy the lien on the Colorado land. Kennedy contends that because these liens were placed before Stell-wag executed his will that George should not have paid such liens. Kennedy cites North Carolina Gen.Stat. 28A-15-3 which provides that a devisee takes property subject to encumbrances and without a right to have other assets of the decedent applied to discharge the secured obligation, unless an express provision of the will confers such right of exoneration. The statute further provides that a general testamentary direction to pay the debts of the decedent is not sufficient to confer such right. George argues that § 474.060 permits the payment of encumbrances before transfer to the devisee if the will provides by implication that such be paid. She then argues that from the will an intent can be found on the part of Stellwag that the two liens should be paid prior to distribution. However, “[i]t is well established in Missouri that the construction of a will for the purpose of ascertaining the testator’s intent is covered by the law of the testator’s domicile when the will was executed_” Estate of Pet-tit v. Levine,

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817 S.W.2d 466, 1990 Mo. App. LEXIS 1783, 1990 WL 197713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-stellwag-v-kennedy-moctapp-1990.