Steadman v. DEPARTMENT OF MANAGEMENT SERVS.

901 So. 2d 915, 2005 WL 924314
CourtDistrict Court of Appeal of Florida
DecidedApril 22, 2005
Docket5D04-2974
StatusPublished
Cited by1 cases

This text of 901 So. 2d 915 (Steadman v. DEPARTMENT OF MANAGEMENT SERVS.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steadman v. DEPARTMENT OF MANAGEMENT SERVS., 901 So. 2d 915, 2005 WL 924314 (Fla. Ct. App. 2005).

Opinion

901 So.2d 915 (2005)

Lavondra STEADMAN, o/b/o John STEADMAN, Appellant,
v.
DEPARTMENT OF MANAGEMENT SERVICES, etc., Appellee.

No. 5D04-2974.

District Court of Appeal of Florida, Fifth District.

April 22, 2005.

*916 James L. Homich, Mt. Dora, for Appellant.

Spencer Kraemer and Erin Banks, Assistant General Counsels, Department of Management Services, Tallahassee, for Appellee.

SHARP, W., J.

Lavondra Steadman appeals from a final order of the Division of Retirement which denied her request to pay survivor benefits to her ward John Steadman. The Division refused to pay benefits claiming that Lavondra failed to timely provide the documentation requested by the Division, namely, an order determining heirs and guardianship papers. We conclude the circuit court order obtained by Lavondra and submitted to the Division—an order determining beneficiaries—satisfied the Division's documentation requirement and the Division's refusal to consider her application was frivolous.

In July 2002, State employee Thelma Steadman passed away. Thelma was survived by three adult children, including Lavondra, and her legally adopted minor son, John. Lavondra is John's biological mother. She applied to the Division for survivor benefits for John.[1]

The Division sent Lavondra several letters stating that it needed an order determining heirs and guardianship papers to pay benefits. In November 2003, the Division sent Lavondra a certified letter informing her that it had cancelled her application for benefits because it had not received the order determining heirs or guardianship papers.

In response, Lavondra's attorney requested the Division make an administrative determination that John was entitled to benefits. Lavondra also filed a petition in circuit court asking for an order determining Thelma's beneficiaries, pursuant to section 733.105[2] and Florida Probate Rule 5.385.[3]

On April 23, 2004, the circuit court entered an order determining beneficiaries. *917 The order specifically found: 1) Thelma died without a spouse, 2) her beneficiaries are her three adult children and one minor son, John, 3) the children each have a 25% share of Thelma's intestate estate and 4) John's legal guardian is his natural mother, Lavondra. A copy of this order was sent to the Department of Management Services.

On May 12, 2004, the Department sent Lavondra's attorney a letter acknowledging that the Division had received a copy of the order determining beneficiaries. The letter goes on to state the order determining beneficiaries was not the documentation requested. The case was then transferred to the Division of Administrative Hearings for a hearing on the issue of canceling Lavondra's application.

On June 8, 2004, the Administrative Law Judge entered an order recommending the Division enter a final order in 45 days rejecting Lavondra's application if, by that time, she has not provided the required documentation. The judge concluded the Division had properly requested an order determining heirs and guardianship papers from Lavondra and that Lavondra had not provided the requested documentation.

Lavondra filed an exception to the recommended order, alleging the Division had refused to accept the court's order determining beneficiaries. She attached a copy of that order to her exception. The Division rejected Lavondra's exception on the basis the Administrative Law Judge had already considered the order determining beneficiaries and concluded it was inadequate to support her request for benefits. The Division then entered a final order rejecting Lavondra's application.

On appeal, Lavondra contends the Division of Retirement and the Administrative Law Judge erred when they refused to accept the court order determining beneficiaries as the documentation required by the Division for payment of benefits. Lavondra argues the Division has not stayed current with changes in the law and was demanding an order—an order determining "heirs"—which no longer exists under the probate rules.

Florida Probate Rule 5.385 provides that a personal representative or other interested person may petition the court if there is a question regarding beneficiaries or shares in an estate. Rule 5.385(c) had required the court to enter an order determining "heirs or devises." However, this subsection was amended in 2003 and the language "heirs or devises" was replaced with "beneficiaries." Amendments to the Florida Probate Rules, 848 So.2d 1069 (Fla.2003). Thus the court now enters an order determining "beneficiaries" and not "heirs."

Under the current probate code, beneficiaries and heirs are defined as follows:

(2) "Beneficiary" means heir at law in an intestate estate and devisee in a testate estate. The term "beneficiary" does not apply to an heir at law or a devisee after that person's interest in the estate has been satisfied. In the case of a devise to an existing trust or trustee, or to a trust or trustee described by will, the trustee is a beneficiary of the estate. Except as otherwise provided in this subsection, the beneficiary of the trust is not a beneficiary of the estate of which that trust or the trustee of that trust is a beneficiary. However, if each trustee is also a personal representative of the estate, the beneficiary or beneficiaries of the trust as defined in s. 737.303(4)(b) shall be regarded as a beneficiary of the estate. (18) "Heirs" or "heirs at law" means those persons, including the surviving *918 spouse, who are entitled under the statutes of intestate succession to the property of a decedent.

§ 731.201, Fla.Stat. As Lavondra correctly points out, "heir" is simply a subset of "beneficiary."

In the May 12, 2004 letter acknowledging receipt of the court order, the Department stated that an order determining beneficiaries was not relevant to the issue of who qualifies as a joint annuitant under Chapter 121.[4] Section 121.021 defines "joint annuitant" as follows:

(28) "Joint annuitant" means any person designated by the member to receive a retirement benefit upon the member's death who is:
(a) The spouse of the member;
(b) The member's natural or adopted child who is under age 25, or is physically or mentally disabled and incapable of self-support, regardless of age; or any person other than the spouse for whom the member is the legal guardian, provided that such person is under age 25 and is financially dependent for no less than one-half of his or her support from the member at retirement or at the time of death of such member, whichever occurs first; or
(c) A parent or grandparent, or a person age 25 or older for whom the member is the legal guardian, provided that such parent, grandparent, or other person is financially dependent for no less than one-half of his or her support from the member at retirement or at time of the death of such member, whichever occurs first.

Section 121.091(8) provides that if no beneficiary is named, the beneficiary shall be the spouse of the deceased, if living. If the member's spouse is not alive at his or her death, the beneficiary shall be the living children of the member.

The court order determining beneficiaries states that Thelma died without a spouse and names her four children (including John as her legally adopted son) as the beneficiaries of her intestate estate.

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Related

French v. Department of Children & Families
920 So. 2d 671 (District Court of Appeal of Florida, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
901 So. 2d 915, 2005 WL 924314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steadman-v-department-of-management-servs-fladistctapp-2005.