Nelson v. Nelson

512 S.W.2d 455, 1974 Mo. App. LEXIS 1299
CourtMissouri Court of Appeals
DecidedJuly 1, 1974
DocketKCD 26401
StatusPublished
Cited by16 cases

This text of 512 S.W.2d 455 (Nelson v. Nelson) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson v. Nelson, 512 S.W.2d 455, 1974 Mo. App. LEXIS 1299 (Mo. Ct. App. 1974).

Opinion

WASSERSTROM, Judge.

A widow sues here to reach funds deposited in a bank account in joint names of her deceased husband and his sister. Plaintiff’s theory is that the account in question was established and the funds deposited were transferred in fraud of her marital rights. The underlying facts are essentially undisputed, the issue being what inferences and legal conclusions are to be drawn therefrom.

Plaintiff and her deceased husband, Jack Clifford Nelson (called “Cliff”), were married on September 19, 1964, on which date she was 24 years of age and he was 49. At the time of the marriage she had one child, 9 months of age. She brought no funds to the marriage. On the other hand, Cliff was Vice President and Sales Manager of Vess Cola Bottling Company and had a modest accumulation of assets.

Substantially concurrent with the marriage, Cliff purchased a small home with a *458 downpayment of $5,000, which he put in joint names with plaintiff. He had additional assets at this time consisting of $7,000 in life insurance, on which the defendant sister Vivian was named as beneficiary, and an account with Blue Ridge Bank, which was in the joint names of Cliff and Vivian. Cliff apparently had some additional assets in his sole name, but no itemization or value of these additional assets appears in the record.

On January 11, 1966, Cliff opened the joint bank account here in question in the Columbia National Bank of Kansas City, Missouri. The opening deposit was $9,-112.45, of which $4,887.39 came from an account in Central Bank which had theretofore been in Cliff’s sole name. Cliff never told plaintiff anything about this new account; but he did talk about it to a friend, to whom he gave as one reason for changing banks that he preferred the practice of Columbia National Bank of not disclosing information with respect to customers’ deposits with the bank.

Relatively small withdrawals were made from time to time by Cliff from this joint account and several additional deposits were made. The most significant of these additional deposits was $4,000 in February of 1967, $4,000 on January 11, 1968, and $2,000 on March 25, 1969. Because of the withdrawals and deposits, there was some fluctuation in the balance kept in the account, but the balance increased overall until the final balance of $16,900 at the time of death.

A daughter was born to plaintiff and Cliff on September 3, 1968, and during that year plaintiff began requesting that she be accorded a greater participation in the family financial affairs. No doubt in response to those importunings and also because of the birth of the daughter, Cliff did make some changes in assets and handling of accounts. One action was to change the beneficiary on the $7,000 of life insurance from Vivian to plaintiff. Another change was the transfer of the account at Blue Ridge Bank from the names of Cliff and Vivian to the joint names of Cliff and plaintiff, and plaintiff thereafter very largely took charge of that account.

Cliff died from a heart attack on April 15, 1970. There was no period of disability prior to that death, and he had led a vigorous active life. There was evidence, however, that for some years prior to his death he had worked long hours; that he had become concerned about business affairs and that he had become nervous and excitable; that he had submitted himself to a number of physical examinations and electrocardiograms during the period 1966 to 1968; and that he stated to his wife that he thought he would die young and would not be around to see his children grow up.

Immediately following Cliff’s death, plaintiff found herself with title to the house, $7,000 insurance proceeds, $6,000 in the Blue Ridge Bank and miscellaneous personal property of approximately $2,000. She discovered for the first time that Vivian was the surviving joint tenant of the Columbia National account. Plaintiff then approached Vivian with a suggestion that Vivian transfer $5,000 to each of the children and that Vivian keep the balance, but Vivian declined to go along with that suggestion. This suit followed.

Columbia National Bank paid into the registry of the court $17,762.70, which was the full principal amount of the account together with accrued interest. After receiving evidence, the trial court entered judgment for the plaintiff “as trustee” and ordered that the funds in the registry of the court be turned over to the administrator of the estate of Jack C. Nelson for the determination by the Probate Court of the amount of her marital rights. Vivian appeals from that judgment, assigning the following as error: 1) that plaintiff did not prove an intent and purpose by Cliff to defraud plaintiff of her marital rights; 2) that the trial court made improper computations in determining that the amount re *459 ceived by plaintiff was so disproportionate as to give rise to an inference of intent to defraud; 3) that plaintiff failed to prove that the account in question was established in contemplation of imminent death; 4) that the trial court should have required answer to Interrogatory No. 18.

These points can be reduced to two by considering the interrelated Points 1, 2 and 3 together.

I.

This case is controlled by § 474.150 (all statutory references herein being to RSMo 1969, V.A.M.S.), which provides as follows:

“1. Any gift made by a person, whether dying testate or intestate, in fraud of the marital rights of his surviving spouse to share in his estate, shall, at the election of the surviving spouse, be treated as a testamentary disposition and may be recovered from the donee and persons taking from him without adequate consideration and applied to the payment of the spouse’s share, as in case of his election to take against the will.”

The important portion of this statute for present purposes is the phrase “in fraud of the marital rights.” This statutory phrase was intended to adopt the meaning of that term as it existed at common law. Reinheimer v. Rhedans, 327 S.W.2d 823 (Mo. 1959). Therefore, to see whether or not the transfer in this case was in fraud of plaintiff’s marital rights, we must look at the extensive body of cases which developed under the common law of this state.

A.

The common law of this state has long been that a spouse may not give away his property without consideration with the intent and purpose of defeating the marital rights of the other spouse. A leading case declaring this rule prior to the adoption of our present statute is Potter v. Winter, 280 S.W.2d 27 (Mo.1955). The law on this subject was thoroughly reviewed and readopted after enactment of the new 1955 statute in Edgar v. Fitzpatrick, 369 S.W.2d 592 (Mo.App.1963), modified on other grounds, 377 S.W.2d 314 (Mo. banc 1964). Under the common law, the burden of proving the prohibited intent and purpose to defraud was upon the surviving spouse. Dillard v. Dillard, 266 S. W.2d 561, 563 (Mo.1954); Sebree v.

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Bluebook (online)
512 S.W.2d 455, 1974 Mo. App. LEXIS 1299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-v-nelson-moctapp-1974.