Matter of Estate of Wulf

526 N.W.2d 154, 1994 Iowa Sup. LEXIS 276, 1994 WL 719164
CourtSupreme Court of Iowa
DecidedDecember 21, 1994
Docket93-1073
StatusPublished
Cited by12 cases

This text of 526 N.W.2d 154 (Matter of Estate of Wulf) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa 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 Wulf, 526 N.W.2d 154, 1994 Iowa Sup. LEXIS 276, 1994 WL 719164 (iowa 1994).

Opinions

SNELL, Justice.

This is a probate matter resulting from a challenge to a will brought by the decedent’s spouse, Lucille Wulf. Lucille appealed the adverse portion of the trial court’s decision on her challenge, and following our affir-mance, the trial court awarded attorney’s fees arising from the appeal incurred by the executor. Lucille now appeals the trial court’s charge of the executor’s extraordinary attorney fees solely against her share of the estate. We affirm in part and modify in part.

I. Factual Background

Raymond Wulf died on December 12,1986. His 1961 will provided that his estate be distributed to his first wife, Dorothy Wulf, if she survived him, and if she did not survive him, to Barry Darwood Simpson. Simpson and Bruce Shawver were named co-executors of Raymond’s estate. The will did not mention Raymond’s surviving spouse, Lucille, whom Raymond married after he executed the will.

Lucille elected to take against the will and seek her statutory share pursuant to Iowa Code section 633.238 (1987). She challenged the final report of the executors on three grounds. First, she asserted that the executors failed to set aside to her a one-third interest in all legal or equitable estates in real property Raymond possessed during the marriage. Second, she contended that she was entitled to an undivided one-half interest in the proceeds of a real estate contract she and Raymond executed during the marriage. Finally, she challenged executors’ fees and attorneys’ fees as being in excess of the maximum the law allows for the ordinary services of fiduciaries and attorneys.

On November 28, 1989, the district court ruled that Lucille was entitled to one-third of the value of the real estate in which Raymond held an equitable interest during the marriage but which Lucille did not release. This amounted to $16,500. The court held against Lucille on her second claim, however, and ruled that she relinquished her right to the real estate contract in question. Lastly, the court held that the executor and attorney fees were warranted since they were incurred as a result of a challenge to the will.

Lucille appealed to this court challenging only the district court’s dismissal of her contract claim. In re Estate of Wulf, 471 N.W.2d 850, 851 (Iowa 1991). We affirmed the district court’s decision. Id. at 853. The executors subsequently filed a “Second Amended Final Report” which asserted that Lucille’s appeal to our court had resulted in the incurrence of extraordinary attorneys’ fees. In this report, the executors reqúested that the court assess the entirety of these fees against Lucille’s share of the estate.

Lucille objected to the second report and argued that the parties should each be responsible for their own fees because the contest over the distribution of the estate was personal between Simpson and herself. The executors requested $3,498.60 in appellate attorney fees and $400 in additional attorney fees to reopen the estate.

The trial court held in favor of the executors and ruled that the requested fees were fair and reasonable. The court also ordered that the costs be assessed solely against Lucille’s share in the estate since she lost the appeal. The court reasoned that it would be unfair to charge any of the costs against Simpson’s share because allowing a disappointed beneficiary to reduce another beneficiary’s share simply because they were disappointed with the apportionment would provide the first beneficiary with unwarranted settlement leverage.

II. Standard of Review

Whether the proceeding at issue was legal or equitable is determinative of our standard for reviewing this matter. Iowa RApp.P. 4. [156]*156Iowa Code section 633.33 (1993), “Nature of proceedings in probate,” provides:

Actions to set aside or contest wills, for the involuntary appointment of guardians and conservators, and for the establishment of contested claims shall be triable in probate as law actions, and all other matters triable in probate shall be tried by the probate court as a proceeding in equity.

Iowa Code section 633.3(8) defines “costs of administration” to include attorneys’ and executors’ fees. See Estate of Bass v. Bass, 196 N.W.2d 433, 435 (Iowa 1972).

A proceeding involving the costs of administration of an estate does not involve an action to set aside or contest a will, nor does it involve an action for the involuntary appointment of guardians and conservators. In addition, a proceeding involving the costs of estate administration is not one for the establishment of contested claims. Id.; In re Estate of Cory, 184 N.W.2d 693, 696 (Iowa 1971). It follows that hearings dealing with the costs of administration are equitable in nature and our review is therefore de novo. Bass, 196 N.W.2d at 435; Cory, 184 N.W.2d at 697.1

III. Award of Extraordinary Attorney’s Fees

Lucille argues that the trial court’s assessment of extraordinary attorney’s fees against the estate was improper because her challenge to the second amended report involved a personal dispute between herself and exee-utor/beneficiary Simpson. She contends Simpson failed to show just cause to justify the award and did not demonstrate any special estate interest warranting the additional fees. The executors argue that they demonstrated just cause for the fee award because the dispute was not personal between Lucille and Simpson but rather involved the validation and clarification of the will in question. They assert that the dispute involved settling the question of what shares the individuals in question would take and them role as fiduciaries required them to act to finalize the distribution of the estate in accordance with the decision of the trial court.

Iowa Code section 633.199, “Expenses and extraordinary services,” governs courts’ award of extraordinary attorney fees in probate matters. Section 633.199 provides:

Such further allowances as are just and reasonable may be made by the court to personal representatives and their attorneys for actual necessary and extraordinary expenses or services. Necessary and extraordinary services shall be construed to also include services in connection with real estate, tax matters, and litigated matters.

Whether an executor may legally obligate the estate for attorneys’ fees depends on the peculiar circumstances of each individual case. In re Estate of Law, 253 Iowa 599, 602, 113 N.W.2d 233, 234 (1962). We accord the trial court considerable discretion in taxing executor attorney fees to estates. In re Estate of Ohrt, 516 N.W.2d 896, 902 (Iowa 1994).

We have noted that pronouncement of a precise test for the governance of this issue in all instances is not possible. Law, 253 Iowa at 602, 113 N.W.2d at 234. However, general factors guide our decision in this area.

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Bluebook (online)
526 N.W.2d 154, 1994 Iowa Sup. LEXIS 276, 1994 WL 719164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-estate-of-wulf-iowa-1994.