In re Estate of Honse

392 S.W.3d 511, 2013 WL 394708, 2013 Mo. App. LEXIS 141
Missouri Court of Appeals·Decided February 1, 2013·No. No. SD 31853·Published

Opinion

JEFFREY W. BATES, J.

Does the court-ordered sale of property by a conservator to support his incompetent ward completely adeem a specific bequest or devise to a beneficiary of the ward’s trust? Our answer on these facts is “No.” Instead, the bequest or devise is adeemed only to the extent the sale proceeds are used to support the ward or pay estate expenses and, after the ward’s death, the balance of the identifiable proceeds passes to the beneficiary.

I. Factual and Procedural Background

The record on appeal consists solely of the legal file, from which our summary of the facts is drawn. Donald Honse (Donald) and Mildred Honse (Mildred) were husband and wife.1 The couple had five biological children: Sandra Kay Schoene (Schoene); Debra Lynn Clark (Clark); Nancy Ann Rowden (Rowden); Douglas Andrew Honse (Douglas); and Gregory Steven Honse (Gregory). Hereinafter, we collectively refer to Schoene, Clark and Rowden as “Daughters.”

Gregory died prior to 2005 and left no surviving issue. On February 24, 2005, Donald and Mildred executed a joint, revocable inter vivos trust denominated as the Honse Family Trust (the Trust). Article III, § A.2 of the Trust gave the Trustee the discretionary authority to use “so much of the income and principal of the trust estate as the Trustee deems necessary or appropriate for the care, comfort, medical, or surgical attention, maintenance, or support” of a mentally or physically incapacitated settlor. Article V contained provisions describing how the trust estate should be distributed after both of the settlors died. Section C of that article stated:

C. DISTRIBUTION OF REMAINDER OF TRUST ESTATE Upon the death of both of the Settlors and after payment of final debts and expenses and after the specific bequests of personal property, per Article V, Paragraph A above, the Trustee shall distribute the remainder of the Trust Estate, together with any undistributed net income, as follows:

1. To Settlors’ son, Douglas A. Honse, because he farms the real estate owned by Settlors, the following:
a. Settlors’ farm except for Set-tlors’ residence and the immediate land around it of at least one (1) acre to be surveyed and legally described at the expense of the Trust.
b. Farm operational outbuildings; vehicles (including all pickups owned by Settlors); tractors, implements, and equipment; tools and supplies; and crops growing and being stored including hay and other cattle feed.
2. To Settlors’ daughters, Sandra K. Schoene, Debra L. Clark, and Nancy A. Rowden, the following in equal shares:
a. Settlors’ residence and the immediate land around it of at least one (1) acre to be surveyed and legally described at the expense of the Trust.
b. Any passenger vehicle owned by Settlors (to be contrasted with pickup trucks which were to remain with the farm).
c. Furniture, appliances, and household effects in Settlors’ residence.

[514] Donald and Mildred were named as co-trustees of the Trust. Article IX of the Trust named Douglas as the first successor trustee and Edwin Honse (Edwin) as the second successor trustee.

On August 3, 2005, Donald and Mildred executed a first amendment to the Trust (August 2005 amendment). This amendment changed Article III, § C so that it stated:

C. DISTRIBUTION OF REMAINDER OF TRUST ESTATE Upon the death of both of the Settlors and after payment of final debts and expenses and after the specific bequests of personal property, per Article V, Paragraph A above, the Trustee shall first make the following specific bequests and distributions and distribute the remainder of the Trust Estate, together with any undistributed net income, as follows:
1. The following specific property to Settlors’ son, Douglas A. Honse, per stirpes, because he has been farming the real estate owned by Settlors along with them and assisted in caring for and running errands for Settlors, the following:
a. Settlors’ farm except for Set-tlors’ residence and the immediate land around it of at least one (1) acre (or more as may be required by various zoning requirements) to be surveyed and legally described at the expense of the Trust.
b. Farm operational outbuildings; vehicles (including all pickups owned by Settlors); tractors, implements, and equipment; tools and supplies; livestock; and crops growing and being stored including hay and other cattle feed.
2. The following specific property to Settlors’ daughters, Sandra K. Schoene, Debra L. Clark, and Nancy A. Rowden, in equal shares, per stirpes:
a. Settlors’ residence and the immediate land around it of at least one (1) acre to be surveyed and legally described at the expense of the Trust.
b. Any passenger vehicle owned by Settlors (to be contrasted with pickup trucks which were to remain with the farm).
c. Furniture, appliances, and household effects in Settlors’ residence.
3.The rest, remainder, and residue of the Trust Estate together with any undistributed income shall be distributed in equal shares to each of Set-tlors’ daughters, Sandra K. Schoene, Debra L. Clark, and Nancy A. Row-den. per stirpes.

In September 2007, the Missouri Department of Health and Senior Services filed a petition requesting that the Public Administrator of Maries County be appointed as the guardian and conservator of both Donald and Mildred. The petition alleged that Donald and Mildred were unable to care for themselves because they suffered from senile dementia. Donald died on October 20, 2007. On November 16, 2007, a Maries County circuit judge determined that Mildred was a totally incapacitated and totally disabled person by reason of her mental and physical conditions. The court appointed Maries County Public Administrator Eugene Meyer (hereinafter referred to as Conservator Meyer) as Mildred’s guardian and conservator. He was issued letters of guardianship and conservatorship on November 27, 2007.

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In re Estate of Honse, 392 S.W.3d 511, 2013 WL 394708, 2013 Mo. App. LEXIS 141 (Mo. Ct. App. 2013).

392 S.W.3d 511 (In re Estate of Honse) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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