Kuerschner v. Kuerschner

CourtCourt of Appeals of Arizona
DecidedSeptember 30, 2025
Docket1 CA-CV 25-0108-PB
StatusUnpublished

This text of Kuerschner v. Kuerschner (Kuerschner v. Kuerschner) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kuerschner v. Kuerschner, (Ark. Ct. App. 2025).

Opinion

NOTICE: NOT FOR OFFICIAL PUBLICATION. UNDER ARIZONA RULE OF THE SUPREME COURT 111(c), THIS DECISION IS NOT PRECEDENTIAL AND MAY BE CITED ONLY AS AUTHORIZED BY RULE.

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

In the Matter of the Estate of: THOMAS W. KUERSCHNER, Deceased. ___________________________________________

JAMES T. KUERSCHNER, Respondent/Appellee,

v.

STEFANIE KUERSCHNER, Petitioner/Appellant.

No. 1 CA-CV 25-0108 PB FILED 09-30-2025

Appeal from the Superior Court in Maricopa County No. PB2021-003597 The Honorable Lisa Ann VandenBerg, Judge Retired

AFFIRMED

COUNSEL

Frazer, Ryan, Goldberg & Arnold, LLP, Phoenix By Scott A. Erickson, Philip B. Whitaker Counsel for Respondent/Appellee

Stefanie A. Kuerschner, Phoenix Petitioner/Appellant KUERSCHNER v. KUERSCHNER Decision of the Court

MEMORANDUM DECISION

Judge Daniel J. Kiley delivered the decision of the Court, in which Presiding Judge Angela K. Paton and Judge Brian Y. Furuya joined.

K I L E Y, Judge:

¶1 Stefanie Kuerschner filed a petition in superior court challenging the disallowance of claims she submitted to the estate (the “Estate”) of her late husband Thomas Kuerschner. After a trial, the court ruled against her and awarded attorney fees and costs to the Estate. We affirm.

FACTS AND PROCEDURAL HISTORY

¶2 On appeal from a bench trial, we view the facts in the light most favorable to sustaining the judgment. See, e.g., Town of Florence v. Florence Copper Inc., 251 Ariz. 464, 468, ¶ 20 (App. 2021).

¶3 Thomas and Joan F. Kuerschner had three children, James Kuerschner, Michael Kuerschner, and Christine Kuerschner. Joan died in July 2012. Thomas and Stefanie were married in October 2013.1

¶4 At all relevant times, Thomas worked as an oral surgeon. The couple purchased a residence in Scottsdale in October 2016. During the marriage, the couple enjoyed a high standard of living, which Stefanie later attributed to Thomas’s “extravagan[ce].”

¶5 Thomas filed a petition for dissolution of marriage in May 2021. At about the same time, Thomas canceled the couple’s membership at the Desert Mountain Golf Club. And over the next few weeks, Thomas removed Stefanie as beneficiary of his multi-million-dollar life insurance policies (the “Great-West insurance policies”) with Great-West Life & Annuity Insurance Company (“Great-West”) and designated his sons James and Michael as beneficiaries instead.

¶6 Approximately one month later, Thomas died by suicide. Thomas’s will, which he signed in December 2013 after his marriage to

1 To avoid confusion, we respectfully refer to individuals who share a last

name by their first names.

2 KUERSCHNER v. KUERSCHNER Decision of the Court

Stefanie, left nothing to her. Instead, the will bequeathed Thomas’s assets to his children and a trust that he had previously established. In accordance with the provisions of Thomas’s will, James was appointed personal representative of the Estate.

¶7 In February 2022, Stefanie submitted a Notice of Claims Against the Estate. She asserted claims, for example, to the statutory homestead allowance of $18,000, see A.R.S. § 14-2402(A), and the family allowance of $12,000, see A.R.S. § 14-2404(C), as well as a general claim to her interest in the couple’s community property. She also asserted claims to specific assets, including the proceeds of the Great-West insurance policies and amounts due under two promissory notes that Thomas obtained in connection with the sale of his interests in two professional practices.

¶8 As personal representative, James allowed some of Stefanie’s claims and disallowed others. The claims he allowed included Stefanie’s claim for the statutory homestead and family allowances in the aggregate amount of $30,000. James declined to disburse this sum to Stefanie, however, on the basis that the homestead and family allowances were statutorily chargeable against any benefit or share passing to Stefanie by non-probate transfer. See A.R.S. §§ 14-2402(C), -2404(C). Because the value of Stefanie’s one-half share of the Scottsdale residence exceeded $30,000, James asserted, Stefanie was not entitled to a $30,000 disbursement from the Estate.

¶9 James acknowledged that, under appropriate circumstances, Stefanie may be “entitled to recover from any community property still held by the Estate” after payment of debts and expenses. As James later cautioned, however, the amount of the allowed claims of the Estate’s creditors far exceeded the Estate’s assets. “It is entirely possible,” James warned, “that the Estate assets will be exhausted by litigation costs and other expenses of administration,” leaving “nothing” for either Stefanie or the “other creditors of the [E]state[.]”

¶10 The claims that James disallowed included, among others, Stefanie’s claim to the proceeds of the Great-West insurance policies. The Estate denied Stefanie’s allegation that Thomas lacked testamentary capacity to change the beneficiary and alleged that, in any event, Stefanie could assert no valid claim against the Estate relating to the insurance policies since the Estate was not a beneficiary and had no interest in the proceeds. Additionally, James disallowed Stefanie’s claims to amounts payable under the promissory notes, asserting that the notes represent the proceeds of the sale of assets Thomas acquired before the marriage, and

3 KUERSCHNER v. KUERSCHNER Decision of the Court

therefore that amounts payable under those notes were Thomas’s separate property.

¶11 Stefanie also alleged that Thomas breached his fiduciary duty to the marital community by canceling the couple’s country club membership without her consent. Although she did not expressly quantify the damages she claimed, she noted that the “[p]urchase of a new membership” at Desert Mountain would “cost in excess of $100,000.” James disallowed Stefanie’s breach of fiduciary duty claim, taking the position that Thomas acted in the marital community’s interests because the couple “were deeply in debt” and could no longer afford the country club membership.

¶12 Stefanie filed a Petition for Allowance of Claims Against Estate (“Petition for Allowance”) in June 2022. The matter was ultimately set for trial in mid-July 2024.

¶13 In the ensuing probate proceedings, Stefanie filed numerous duplicative motions and claims for relief. After filing a motion in mid- August 2023, for example, seeking an order compelling James to disburse $30,000 to her to satisfy her homestead/family allowance claims, Stefanie filed another motion seeking the same relief two days later, and still another one the following day. In November 2023, Stefanie filed two more motions seeking the same relief. The court denied all her requests as legally unsupported.

¶14 Through counsel, Stefanie contacted Great-West to dispute Thomas’s change to the Great-West insurance policies’ beneficiary designation. In December 2021, Great-West filed an interpleader action in federal district court to “determine the proper beneficiary.” Although the disposition of Thomas’s life insurance proceeds was thus the subject of separate litigation, Stefanie continued to re-assert arguments in the probate proceedings relating to her claim to those proceeds.

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