Neuharth v. Brunz

181 N.W.2d 92, 85 S.D. 267, 1970 S.D. LEXIS 121
CourtSouth Dakota Supreme Court
DecidedNovember 17, 1970
DocketFile 10764
StatusPublished
Cited by6 cases

This text of 181 N.W.2d 92 (Neuharth v. Brunz) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neuharth v. Brunz, 181 N.W.2d 92, 85 S.D. 267, 1970 S.D. LEXIS 121 (S.D. 1970).

Opinion

HOMEYER, Judge.

Plaintiff appeals from a judgment which confirms defendant’s title to certain real estate and personal property which she holds in joint tenancy with her mother, Christina Neuharth, now deceased.

Plaintiffs in this and two other actions consolidated for trial seek to invalidate the conveyances and transfers through which defendant acquired such title and a determination that the property is an asset of the estate of Christina Neuharth and subject to the terms of her will. Emil Neuharth, plaintiff in this and one other action, Edward Neuharth and Mollie Kahler who with him are plaintiffs in a third action, and the defendant, Emma Brunz, are children of Christina Neuharth and Henry Neuharth, both deceased A sister, Anna Neuharth, an incompetent, appears by a guardian ad litem.

On February 26, 1963, Henry Neuharth executed a will at his home in Burke, South Dakota, which omitting the usual opening paragraph, signature and attestation clause reads:

“FIRST: I desire that all of my just debts, expenses of last sickness and funeral expenses be paid by ,my coexecutors hereinafter named as soon after my death as may be convenient.
SECOND: I hereby nominate and appoint my son, Emil Neuharth, and my daughter, Emma Brunz, as coexecutors of this my last will and testament, and I desire that they act in said capacity without bond.
*270 THIRD: I give, devise and bequeath to my son Edward Neuharth, my son, Emil Neuharth, my daughter, Mollie Kahler, and my daughter, Emma Brunz, as co-trustees, in trust only, all of my property, real, personal or mixed and wherever located, to be held in trust and used for the support and benefit of my wife, Christina Neuharth, and my daughter, Anna Neuharth, so long as either of them shall live.
FOURTH: After the life interest in the above trust has terminated by the death of both of the beneficiaries above named, I then give, devise and bequeath the remainder of said trust to Edward Neuharth, Mollie Kahler, Emil Neuharth and Emma Brunz, in equal shares.
FIFTH: In the event of the inability or unwillingness of the trustees herein named to act as trustees, then in such event I direct the Court having jurisdiction to appoint a corporate trustee with bond.
SIXTH: I hereby revoke and cancel all previous wills or codicils thereto by me made.”

At the same time and place Christina Neuharth executed a similar will with her husband Henry’s name substituted for hers wherever it appears in the above will. The makers retained possession of the wills after execution. Henry’s will was probated after his death. Christina’s could not be found after her death, but an unexecuted copy was obtained from the law office of the draftsman and appears in the record. There is no dispute as to its contents or execution.

On May 20, 1963, Henry Neuharth executed and delivered to his wife Christina, a warranty deed to the family home in Burke, which is the real estate here involved. On the same day with the apparent knowledge and consent of Henry she redeemed ten U.S. Series E Bonds registered in their names for a total sum of $9,470.80. From the proceeds she purchased a $5,000 Certificate of Deposit in a Gregory, South *271 Dakota bank, payable to “herself or Emma Brunz, either or survivor”. On the same date, the balance in a joint checking account of Henry and Christina, and the balance of the proceeds from the redemption of the government bonds, making a total of $6,481.21, was deposited in a new checking account in the same bank in the names of Christina Neuharth or Emma Brunz. They both signed the bank signature card dated May 20, 1963. Thereafter both wrote checks on this account until Christina’s death about three and one-half years later.

Henry Neuharth died on June 27, 1963 and the will described, supra, was probated. Listed as assets of the estate were a one-half interest in an old Chrysler automobile, a one-half interest in 160 acres of land which had been sold under contract for deed and a one-half interest in the family home heretofore mentioned, which had been transferred to Christina Neuharth in contemplation of death necessitating a determination of inheritance taxes. Emma Brunz acted as executrix, Emil Neuharth having renounced his right to act, and the estate was distributed on January 28, 1964 without objection. On February 21, 1964, Christina conveyed the family home to herself and Emma Brunz as joint tenants with right of survivorship and not as tenants in common. The certificate of deposit and the balance in the checking account and the family home are the subject matter of this litigation.

Plaintiff-appellant contends the trial court erred in entering judgment for the defendant when (1) the preponderance of the evidence establishes a valid family agreement for the disposition of the property of Henry and Christina Neuharth agreed to and ratified by defendant, Emma Brunz; (2) absent sufficient proof of (1), the preponderance of the evidence shows an agreement between Henry and Christina to make wills which would make available their residuary estates for the support of the incompetent daughter, Anna; and (3) the preponderance of the evidence shows defendant obtained her interest in such property by the exercise of undue influence. The assignments of error will be considered in the above order.

*272 As an appellate court we may not disturb the findings of the trial court unless we are satisfied that they are clearly erroneous. SDCL 15-6-52(a).

I.

Family agreements relative to the distribution of property of decedents have long been recognized in this state and are not contrary to public policy. If fairly made they are binding and enforceable according to their terms. It has frequently been said the law looks with favor upon such family compromises. In re Vasgaard’s Estate, 62 S.D. 421, 253 N.W. 453; Moncur v. Jones, 72 S.D. 202, 31 N.W.2d 759; Johnson v. Tomlinson, N.D., 160 N.W.2d 49, 31 Am.Jur.2d, Executors and Administrators, § 12, 15A C.J.S. Compromise and Settlement § 3b.

An essential and indispensable element necessary to a binding agreement on a family settlement is the presence of some interest in the subject matter which is the basis for the settlement or compromise. This is lacking in the case at bar. So long as Henry and Christina were both alive, their children possessed no interest in their property or property which might become a part of their estates. Consideration and other elements which sometimes give rise to an estoppel are not here present. See Henrich v. Newell, 59 S.D. 372, 240 N.W. 327.

The evidence shows little more than the presence of the children or some of them in the office of the lawyer draftsman when the wills and proposed contents were discussed. The record is clear Christina was not present during this .discussion. A few days later the wills were executed in the family home with the draftsman and children present.

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Bluebook (online)
181 N.W.2d 92, 85 S.D. 267, 1970 S.D. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neuharth-v-brunz-sd-1970.