State v. Palm

272 P.3d 668, 128 Nev. 34, 128 Nev. Adv. Rep. 4, 2012 Nev. LEXIS 15, 2012 WL 512656
CourtNevada Supreme Court
DecidedFebruary 16, 2012
DocketNo. 55634
StatusPublished
Cited by8 cases

This text of 272 P.3d 668 (State v. Palm) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Palm, 272 P.3d 668, 128 Nev. 34, 128 Nev. Adv. Rep. 4, 2012 Nev. LEXIS 15, 2012 WL 512656 (Neb. 2012).

Opinion

OPINION

Per Curiam:

This is a dispute between the State and a testator’s daughter and half sisters over his $3 million estate. At issue is the proper distribution of the estate of the testator, who, by way of a handwritten will, attempted to disinherit all of his heirs but was unsuccessful in otherwise affirmatively devising his estate. Under the common law, a disinheritance clause was unenforceable in these circumstances. In the proceedings below, after determining that the testator’s handwritten will was a valid testamentary instrument that revoked his earlier will, the district court applied the prevailing common law rule, and thereby deemed the testator’s disinheritance clause unenforceable. The court therefore distributed the testator’s entire estate to his disinherited daughter, pursuant to the law of intestate succession, and rejected the claim that because he disinherited all of his heirs, his estate must escheat to the State to be used for educational purposes.

Crucially, however, the Nevada Legislature has enacted a statute providing, in pertinent part, that a will includes “a testamentary instrument that merely . . . excludes or limits the right of an individual or class to succeed to property of the decedent passing by intestate succession.” NRS 132.370. We conclude that by its plain and unambiguous language, NRS 132.370 abolishes the common law rules that would otherwise render a testator’s disinheritance clause unenforceable when the testator is unsuccessful at affirmatively devising his or her estate. Here, although the district court correctly determined that the testator executed a valid handwritten will that revoked his earlier will, the court erred in deeming the disinheritance clause contained therein unenforceable.

Next, we consider whether to adopt the doctrine of dependent relative revocation, which, broadly stated, provides that a revocation made in connection with a failed dispositive objective or false assumption of law or fact should be considered ineffective when doing so is necessary to ensure that an estate is distributed in a manner that most closely matches the testator’s probable intent. In this, we consider whether the district court erred in determining that the doctrine is precluded by NRS 133.130, which provides, in [39]*39relevant part, that where a testator executes two wills, the revocation of the second will does not operate to “revive the first will,” absent terms in the revocation expressing an intention to revive the first will or the reexecution of the first will. We conclude that NRS 133.130 restricts revival, a concept that is fundamentally distinct from the doctrine of dependent relative revocation. Furthermore, because we believe that the general policy underlying the doctrine of dependent relative revocation is sound, we take this opportunity to expressly adopt the doctrine. Here, while the district court erred in determining that NRS 133.130 precludes the doctrine of dependent relative revocation, it did not err in alternatively determining that if the doctrine exists in Nevada, it is inapplicable under the particular facts of this case.

Finally, we consider whether an escheat is triggered when, as here, a testator disinherits all of his or her heirs. We conclude that an escheat is triggered in such a circumstance because, when all heirs have been disinherited, the testator “leaves no surviving spouse or kindred” under NRS 134.120 pursuant to the plain and commonly understood meaning of that phrase. Accordingly, the district court erred in determining that the testator’s estate does not escheat.

Because the disinheritance clause contained in the testator’s will is enforceable, we reverse the judgment of the district court. As the testator disinherited all of his heirs, his estate must escheat.

FACTS AND PROCEDURAL HISTORY

The 1975 will

In 1975, William Melton executed a formal will. The will was comprised of two forms, which Melton and three witnesses signed. Melton devised most of his estate to his parents and devised small portions to his brother and two of his cousins, Terry Melton and Jerry Melton. He also indicated that his daughter was to receive nothing. In 1979, Melton executed a handwritten codicil on the back of one of the 1975 will forms that provided his friend, Alberta (Susie) Kelleher, should receive a small portion of his estate (both will forms and the codicil are hereinafter referred to as “the 1975 will”).

The 1995 letter

In 1995, Melton sent a handwritten letter to Kelleher. It reads:

5-15-95
5:00 AM
Dear Susie
I am on the way home from Mom’s funeral. Mom died from an auto accident so I thought I had better leave something in writing so that you Alberta Kelleher will receive my [40]*40entire estate. I do not want my brother Larry J. Melton or Vicki Palm or any of my other relatives to have one penny of my estate. I plan on making a revocable trust at a later date. I think it is the 15 of [M]ay, no calendar, I think it[’]s 5:00 AM could be 7: AM in the City of Clinton Oklahoma
Lots of Love
Bill
/si William E. Melton
AKA Bill Melton
[Social security number]

Discovery of the 1975 will and the 1995 letter

Kelleher died in 2002, thus predeceasing Melton, who died in 2008.1 Shortly after Melton’s death, respondent John Cahill, Clark County Public Administrator,2 initiated a special administration of Melton’s estate. During this administration, it was discovered that Melton had a daughter, respondent Vicki Palm. The 1995 letter was also discovered. Initially, Palm and respondent Elizabeth Stes-sel3 were appointed co-administrators of Melton’s estate. But the district court suspended their powers after determining that a disinterested party should administer the estate because a dispute over the proper distribution of the estate had arisen between Melton’s half sisters, appellants Linda Melton Orte and Sherry L. Melton Briner, appellant State of Nevada, respondents Bryan Melton and Robert Melton,4 and Palm. The district court therefore appointed Cahill to be the special administrator of Melton’s estate. Thereafter, Cahill obtained access to Melton’s safe deposit box and discovered the 1975 will. The appraised net value of Melton’s estate is approximately $3 million.

[41]*41 The parties and their respective positions

Melton’s daughter

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Cite This Page — Counsel Stack

Bluebook (online)
272 P.3d 668, 128 Nev. 34, 128 Nev. Adv. Rep. 4, 2012 Nev. LEXIS 15, 2012 WL 512656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-palm-nev-2012.