Matter of Estate of Powers

552 N.W.2d 785, 1996 N.D. LEXIS 202, 1996 WL 494685
CourtNorth Dakota Supreme Court
DecidedSeptember 3, 1996
DocketCivil 960056
StatusPublished
Cited by12 cases

This text of 552 N.W.2d 785 (Matter of Estate of Powers) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Estate of Powers, 552 N.W.2d 785, 1996 N.D. LEXIS 202, 1996 WL 494685 (N.D. 1996).

Opinion

VANDE WALLE, Chief Justice.

Edward Powers appealed from a district court order in probate denying his motion to *786 vacate the court’s prior order summarily denying his objection to the final account and distribution of the Estate of Joseph M. Powers. We affirm in part, reverse in part, and remand for further proceedings.

Joseph, a Fargo resident, died on March 31, 1992. Edward was Joseph’s nephew. J. Michael Eddy was named personal representative of the Estate, and Joseph’s will was admitted to probate on April 7,1992.

A notice and information to heirs and devi-sees was served on Edward on April 14, 1992, and a copy of Joseph’s will was provided to the heirs and devisees. Although Edward was not by name listed as a devisee or will beneficiary, paragraph IV of the will provided:

“In the event there is property in my name and that of another as tenants by the entirety, joint tenants with the right of survivorship, or which is in my name as Trustee for the benefit of a named beneficiary, or which is payable to a co-owner, survivor or named beneficiary, it is my intention that said property pass to said survivor, beneficiary or co-owner. If it does not so pass for any reason, I devise said property to the co-owner, survivor or named beneficiary.”

A notice to creditors was published in the Forum, a Fargo newspaper, three times in April and May 1992. More than three years later, on November 9,1995, Eddy, as personal representative, petitioned for an order approving the final account and determining the testacy status of the decedent, and for an order directing distribution.

Edward appeared pro se at the December 19, 1995, hearing on the petition and filed an objection to the final account and proposed order directing distribution. Edward claimed he had worked for Joseph’s construction company and Joseph promised him that, after the business was sold, Edward’s profit-sharing trust certificates would be paid in full. Edward asserted his two profit-sharing trust certificates were currently worth $75,-317.16.

Edward also asserted he was entitled to $10,000 for the appraised value of a 1983 Ford van which the Estate had disposed of and which, he -contended, he “co-owne[d]” with Joseph. Edward asserted he was entitled to the van under paragraph IV of the will and presented to the court a copy of the front page of a North Dakota Department of Transportation motor vehicle registration certificate which was issued May 14, 1992, and listed him as the sole owner of the van.

The trial court summarily denied Edward’s objection without a hearing, 1 approved the final account, and directed final distribution. The trial court ruled Edward had no standing to object because he was not a beneficiary in the will and because his claims were time barred under the non-claim provisions of N.D.C.C. § 30.1-19-03 (U.P.C.3-803). Edward moved to vacate the trial court’s order. The trial court denied the motion, again without a hearing, for the same reasons given in the first order. It is this order denying his motion to vacate the order approving the final account and distribution, which is the subject of Edward’s appeal.

The non-claim statute, N.D.C.C. § 30.1-19-03 (U.P.C.3-803), bars all creditor claims against a decedent’s estate if they are not presented within three months after the date of first publication and mailing of notice to creditors, or within three months after the claim arises if it arises at or after the decedent’s death. Minex Resources, Inc. v. Morland, 467 N.W.2d 691 (N.D.1991). Because the first notice to creditors was published on April 27, 1992, the Estate asserts the last day for Edward to file a claim against the Estate was July 28, 1992, making the claims in his objection to the final account untimely by more than three years. The Estate is partially correct.

The trial court correctly ruled Edward’s claim based on the profit-sharing trust certificates was time barred. Even if the claim need not have been brought against the company rather than the Estate, and we construed Edward’s claim as a contract ac *787 tion based upon Joseph’s alleged promise to him, Edward’s request clearly constitutes a creditor’s claim against the Estate to which the non-claim statute applies. See, e.g., Johnson v. Christensen, 292 N.W.2d 101 (S.D.1980) [where relief sought was contractual in nature, non-claim statute applied].

However, Edward’s claim based on his alleged ownership of the Ford van requires a different analysis. Edward asserted to the trial court that he was a “co-owner” with Joseph of the van. He supported that assertion with a copy of a motor vehicle registration certificate, issued shortly after Joseph’s death, listing Edward as the sole owner of the van. Edward made at least a colorable showing that he owned the van in joint tenancy with Joseph.

It is elementary in this state that, upon the death of one joint tenant, the title to the joint tenancy property vests immediately in the surviving joint tenant. Cranston v. Winters, 238 N.W.2d 647 (N.D.1976). The joint tenancy interest passes to the remaining joint tenant by right of survivorship. Sabot v. Fox, 272 N.W.2d 280 (N.D.1978). The joint tenancy interest does not pass by will because the joint tenant who dies leaving a surviving joint tenant has no interest which he may devise. Schlichenmayer v. Luithle, 221 N.W.2d 77 (N.D.1974). For purposes of the nonclaim statute, the term “claims” “does not include ... demands, or disputes regarding title of a decedent ... to specific assets alleged to be included in the estate.” N.D.C.C. § 30.1-01-06(5) (U.P.C.1-201). See also Illinois Masonic Children’s Home v. Flynn, 109 Ill.App.3d 744, 65 Ill.Dec. 334, 441 N.E.2d 126 (1982). The non-claim statute is not applicable to any dispute Edward may have over title to the van by virtue of his asserted joint tenancy interest.

Moreover, Joseph specifically stated in paragraph IV of the will that if joint tenancy property “does not so pass for any reason, I devise said property to the co-owner, survivor or named beneficiary.” Edward’s assertion of rights under the specific bequest provision of the will cannot be regarded as a “claim” against the Estate for purposes of the non-claim statute.

In O’Connor v. Immele, 77 N.D. 346, 43 N.W.2d 649

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Bluebook (online)
552 N.W.2d 785, 1996 N.D. LEXIS 202, 1996 WL 494685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-estate-of-powers-nd-1996.