In Re Estate of Dorothy Jean McMillan

CourtCourt of Appeals of Tennessee
DecidedApril 1, 2021
DocketE2020-00413-COA-R3-CV
StatusPublished

This text of In Re Estate of Dorothy Jean McMillan (In Re Estate of Dorothy Jean McMillan) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Estate of Dorothy Jean McMillan, (Tenn. Ct. App. 2021).

Opinion

04/01/2021 IN THE COURT OF APPEALS OF TENNESSEE AT KNOXVILLE February 24, 2021 Session

IN RE ESTATE OF DOROTHY JEAN MCMILLIN

Appeal from the Chancery Court for Knox County No. 189858-2 Clarence E. Pridemore, Jr., Chancellor ___________________________________

No. E2020-00413-COA-R3-CV ___________________________________

On behalf of the estate of his mother, one son, as substitute personal representative, filed suit against his brother, the previous personal representative, seeking return of funds alleged to be missing from the decedent’s accounts. Upon summary judgment, the trial court found in favor of the defendant, the initial administrator of the estate. We reverse and remand for trial.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Chancery Court Reversed; Case Remanded

JOHN W. MCCLARTY, J., delivered the opinion of the court, in which D. MICHAEL SWINEY, C.J., and KRISTI M. DAVIS, J., joined.

Bruce T. Hill, Sevierville, Tennessee, for the appellant, Estate of Dorothy Jean McMillin.

Thomas M. Leveille, Knoxville, Tennessee, for the appellee, Paul L. McMillin.

OPINION

I. BACKGROUND

Dorothy Jean McMillin (“Decedent”), the mother of both plaintiff James McMillin (“James”) and defendant Paul McMillin (“Paul”), lived at 3600 Guinn Road in Knoxville, Tennessee, on property consisting of approximately six acres. By early 2012, Decedent was experiencing various health problems.

On June 7, 2012, Paul drove Decedent to attorney Robert Wilkinson’s office, at which time Decedent requested that new estate plans be prepared.1 After leaving Mr. Wilkinson’s office, Paul drove Decedent to Regions Bank, at which time he accompanied his mother into the bank and she changed her account from an individual account owned solely by Decedent to a joint account owned by Decedent and Paul with a right of survivorship. Three weeks later, Paul drove Decedent to Y-12 Credit Union, at which time Decedent likewise changed her account from an individual account owned solely by Decedent to a joint account owned by Decedent and Paul with a right of survivorship.2

On June 20, 2012, Decedent signed a new Last Will and Testament, appointing Paul as the new personal representative of her estate. Pursuant to the language of Decedent’s will, Paul was to distribute Decedent’s property equally among her beneficiaries, share and share alike. On the same day, Decedent also signed a Durable Power of Attorney, naming Paul as agent-in-fact. According to Paul, Decedent thereafter requested that he build a new house for her on the existing property. Decedent passed away on November 18, 2012, prior to the completion of the home.

Paul was issued Letters Testamentary to administer his mother’s Estate on December 21, 2012. He continued to use the money from the joint bank accounts to construct the house. Upon opening an Estate account with SunTrust, Paul issued checks to each of the four sibling beneficiaries whereby each received $100,000. These checks were issued in September 2013. The funds in the Estate account were originally held in Decedent’s Vanguard account with a balance of approximately $577,897.03.

Two of Decedent’s four children, Iris Davenport and James,3 filed suit against Paul and his wife Johneta McMillin, in their individual capacities, for exercising undue influence over Decedent in an attempt to wrongfully enrich themselves. According to the complaint, Paul obtained access to a sum total of $615,055.45 from Decedent (the assets in the joint accounts). They requested that judgment be made on behalf of Decedent’s Estate.

At the February 25, 2014 jury trial, Paul did not deny that he obtained the money from his mother. He testified as follows:

Q: A grand total of $615,055.45; does that sound about like the total amount that you received from those two accounts?

A: It could have been, yes, sir.

1 Her prior will named James to serve as personal representative. 2 According to Paul, Decedent believed that James and Iris wanted to put her in a nursing home and use her money to pay for it. 3 Linda Cole is the fourth sibling. -2- Paul further testified he spent this money, in addition to the amounts claimed in the present matter, on the construction of Decedent’s home:

A: The monies, all of the monies that I have taken out of Regions and Y-12 has been spent on that house.

Q: And you’re telling the Court and the Jury that money that came out of those accounts was used to build that house?

A: Absolutely.

An appraisal of the home at the time of that trial reflected a market value of $320,000. The jury rendered a verdict against Paul and his wife in the amount of $284,800.4 It is apparent that the jury subtracted the appraised value of the house from the $615,055.45 that Paul obtained from his mother prior to her death, plus some apparent minor adjustments. This court explained the verdict in this manner as demonstrated below:

Paul admitted that the house had been appraised at a value of approximately $320,000. He provided no explanation for the disposition of the balance of the $615,000, except to state that he withdrew cash for Decedent’s use in paying her bills at her direction. The jury’s verdict of $284,800 reflects the approximate difference between the $615,000 removed by Paul from the Decedent’s accounts and the appraised value of the new home. Upon careful review of the record, we conclude that there is material evidence to support the jury’s verdict both in substance and amount, and the verdict must be affirmed.

As administrator of the estate, Paul had the duty to collect the judgment against himself on behalf of the Estate. Due to the obvious conflict of interest, on May 23, 2014, Knox County Chancellor Michael Moyers removed Paul as the personal representative and replaced him with the designated successor personal representative, James.

After assuming the duties as personal representative, James discovered that $577,897.03 from Decedent’s Vanguard account had been deposited into the Estate’s SunTrust account by Paul. From the account, Paul had issued $100,000 checks to each beneficiary, leaving $177,897.03 as the balance in the account. However, when James took over, the $177,897.03 was no longer in the account.

On behalf of the Estate, James filed suit against Paul to recover the $177,897.03. The first lawsuit against Paul and his wife, in their individual capacities, did not address

4 Final Judgment entered March 4, 2014. Affirmed by this court on March 31, 2015, No. E2014- 00497-COA-R3-CV. -3- Paul’s activities as personal representative. Paul answered the new complaint by citing a provision under Decedent’s will and claiming that he had broad discretion on how to spend the Estate’s assets.

Between March 2013, the date that the house was listed for sale with a licensed real estate broker, and May 2015, the best offer from a qualified buyer was for $275,000 for the new construction plus $5,000 for an additional one acre. This sum was $40,000 below appraised valued, as the construction of the house was incomplete. Tammy Garber, the licensed real estate agent who listed the property, stated in an affidavit that “at the time of the sale” the property “was uninhabitable, requiring significant work to bring it up to code.” An appraisal estimated the cost to complete the construction at $59,455; it further indicated that “a large sinkhole on the property . . . negatively affected the marketability of the property.”

James, in his capacity as successor personal representative, sought and received court approval to sell the house ($275,000) and a one acre adjoining lot ($5,000) for the sum of $280,000, because the Estate had insufficient funds to complete the construction of the home.

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Bluebook (online)
In Re Estate of Dorothy Jean McMillan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-dorothy-jean-mcmillan-tennctapp-2021.