In Re The Estate of Newell Gene Warren, Deceased: Gladys P. Warren and Terry Warren v. Sherry Maharrey

CourtCourt of Appeals of Mississippi
DecidedJuly 23, 2024
Docket2023-CA-00438-COA
StatusPublished

This text of In Re The Estate of Newell Gene Warren, Deceased: Gladys P. Warren and Terry Warren v. Sherry Maharrey (In Re The Estate of Newell Gene Warren, Deceased: Gladys P. Warren and Terry Warren v. Sherry Maharrey) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re The Estate of Newell Gene Warren, Deceased: Gladys P. Warren and Terry Warren v. Sherry Maharrey, (Mich. Ct. App. 2024).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI

NO. 2023-CA-00438-COA

IN RE THE ESTATE OF NEWELL GENE APPELLANTS WARREN, DECEASED: GLADYS P. WARREN AND TERRY WARREN

v.

SHERRY MAHARREY APPELLEE

DATE OF JUDGMENT: 03/27/2023 TRIAL JUDGE: HON. VICKI B. DANIELS COURT FROM WHICH APPEALED: YALOBUSHA COUNTY CHANCERY COURT, SECOND JUDICIAL DISTRICT ATTORNEYS FOR APPELLANTS: CHARLES M. MERKEL JR. ROBERT ALEXANDER CARSON III ATTORNEY FOR APPELLEE: J. HALE FREELAND NATURE OF THE CASE: CIVIL - WILLS, TRUSTS, AND ESTATES DISPOSITION: AFFIRMED - 07/23/2024 MOTION FOR REHEARING FILED:

BEFORE CARLTON, P.J., McDONALD AND McCARTY, JJ.

CARLTON, P.J., FOR THE COURT:

¶1. This appeal involves a will contest and a contest over inter vivos transfers. Newell

Gene Warren died on December 30, 2018. Mr. Warren’s daughter, Sherry Maharrey, offered

his Last Will and Testament for probate. The decedent’s son and Sherry’s brother, Terry

Warren, and the decedent’s second wife, Gladys P. Warren, filed a petition contesting the

will and certain inter vivos transfers from Mr. Warren to Sherry. Gladys and Terry sought

to have the will and the inter vivos transfers set aside.

¶2. Following a two-day bench trial, the Yalobusha County Chancery Court denied their

petition. Gladys and Terry appeal from the chancery court’s order. ¶3. The chancery court found that the will and the inter vivos transfers were valid; no

confidential relationship existed between Mr. Warren and Sherry, either at the time of the

inter vivos transfers or at the time the will was executed; and there was no evidence that

Sherry had exerted undue influence over Mr. Warren. Finding no error, we affirm.1

STATEMENT OF FACTS AND PROCEDURAL HISTORY

¶4. Mr. Warren died at the age of eighty-seven. Terry and Sherry were Mr. Warren’s

children from his first marriage. When Mr. Warren died, he had been married to his second

wife, Gladys, for about thirty-eight years. Gladys also had children from her first marriage.

¶5. Mr. Warren and his brothers were raised “with little or nothing.” His formal

education ended after the fifth grade. He started out working as a mechanic in two factories.

Eventually, he began his own appliance repair business. Mr. Warren worked in that business

for many years, becoming successful financially. His family uniformly described Mr. Warren

as a very hard worker.

¶6. Gladys also described her husband as “high-strung” and acknowledged that she had

filed for a divorce two times, once in 1998 and again in September 2016, ultimately

dismissing both complaints. Terry testified that while he and Sherry were growing up, he and

his father “didn’t get along,” and, according to Terry, Sherry was “all her mother’s child.”

¶7. Regarding Mr. Warren’s finances, Terry testified that his father “cared about money

1 In the course of appellate briefing, Gladys and Terry included in their record excerpts an “Exhibit A” that purported to summarize Mr. Warren’s assets and the purported beneficiaries of those assets for the years 2011, 2014, 2016, and 2017. Sherry moved to strike Exhibit A. Gladys and Terry filed no response. We grant Sherry’s motion to strike for the reasons addressed.

2 more than anything in the world.” Sherry acknowledged that her father was “frugal” and

“fond of money.” She would always go to Terry, rather than her father, if she needed money.

Terry, a successful businessman, similarly testified that “[ninety-nine] percent of the time,”

Sherry would go to him when she needed help financially, and he would help her all he

could.

¶8. Terry and Sherry both testified that they knew they could not ask their father about his

finances; he was “very private” about his assets. Mr. Warren’s long-time accountant, Joseph

Black Jr.; his lawyers, Daniel Martin and John J. Crow Jr. of the CrowMartin law firm; and

his financial advisor, Justin Childress, all testified at trial. They likewise agreed that Mr.

Warren was very private about his finances. Childress testified that Mr. Warren told him that

“he did not trust his spouse and he preferred that [his financial information] be sent to his

brother’s [home;] that way he could access his statements there.”

¶9. Although Terry acknowledged how private his father was about his assets, several

witnesses at trial testified about how Terry would make remarks about his potential

inheritance or how he would speculate about how much money his father had. For example,

Terry’s aunt, Glenda Warren, testified that any time there were family gatherings, “most of

the time Terry would say, you know, ‘Reckon how much money he’s got?’ . . . ‘I am going

to have a high ole time, you know, when that comes to me.’” Glenda said that Mr. Warren

would react “[k]ind of solemnly” when he would hear Terry making these comments.

Sherry’s son, Charlie, corroborated Glenda’s testimony and said that when his grandfather

heard these kinds of comments, it “grated on his [grandfather’s] nerves.” Sherry testified that

3 she would tell her father that Terry was only joking when he made these remarks, but her

father “didn’t appreciate it.”

I. The Power of Attorney and the Inter Vivos Transfers

¶10. In 2009, Mr. Warren executed a power of attorney in Sherry’s favor. Sherry testified

that she did not know he was going to have such a document prepared. She said that he just

brought it to her office one day. She and her father never talked about it. Sherry “thought

Power of Attorney meant that when something happened to my daddy that it was up to me

to take care of any, you know, any loose ends or whatever.” Sherry further testified, “It never

occurred to me that I could have actually acted on my dad’s behalf in anything.”

¶11. Childress was a certified financial planner with Cetera (Regions Investment

Solutions)2 during the relevant 2014-2018 time period. He was introduced to Mr. Warren

in early 2014, and they had some introductory conversations about financial planning and the

offerings Cetera had regarding investments or insurance. In late March 2014, Mr. Warren

had a Regions IRA CD that was maturing. Childress assisted Mr. Warren in transferring the

assets to a Cetera IRA that invested in a Lincoln fixed index annuity that would have a higher

rate of return. Mr. Warren also purchased a whole life insurance policy with Prudential

around that same time and named Gladys, Terry, and Sherry as beneficiaries.

¶12. Later, in mid-2016, Mr. Warren “popped into” Childress’s office to generally discuss

distributing assets to his children. Mr. Warren was alone at the time. They discussed

different account types and the tax implications for distributing. Childress testified,

2 The marketing name for Cetera is Regions Investment Solutions, which is a subsidiary of Regions Bank.

4 “Specifically, we talked about the insurance policy, his IRA, and the tax consequences of

distributing from the IRA.”

¶13. Then, about a year later (mid-2017), Mr. Warren returned to Childress’s office by

himself, and he “specifically said that he had an annuity that was not under [Childress’s]

purview and he wanted to gift it to Sherry, his daughter.” Childress testified that he and Mr.

Warren “talked about gifting an annuity, and what the tax consequences of that could be.”

Childress told Mr. Warren that “if [the instrument] was a nonqualified annuity and he gifted

the annuity, then there would be a tax consequence to him.” Mr.

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In Re The Estate of Newell Gene Warren, Deceased: Gladys P. Warren and Terry Warren v. Sherry Maharrey, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-newell-gene-warren-deceased-gladys-p-warren-and-missctapp-2024.