Wolfe v. Young

521 S.W.3d 598, 2017 Ky. App. LEXIS 567, 2017 WL 2491661, 2017 Ky. App. Unpub. LEXIS 423
CourtCourt of Appeals of Kentucky
DecidedJune 9, 2017
DocketNO. 2016-CA-000540-DG
StatusPublished
Cited by1 cases

This text of 521 S.W.3d 598 (Wolfe v. Young) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wolfe v. Young, 521 S.W.3d 598, 2017 Ky. App. LEXIS 567, 2017 WL 2491661, 2017 Ky. App. Unpub. LEXIS 423 (Ky. Ct. App. 2017).

Opinion

OPINION

COMBS, JUDGE:

This is a case arising out of probate law in which we granted discretionary review. [599]*599Roy Gregory Wolfe contends that the circuit court erred by affirming an order of the district court order removing him as executor of his father’s estate. Wolfe argues that the district court failed to apply the correct standard concerning the allegation of the other beneficiaries that he was unsuited to hold this fiduciary position. Having carefully considered the arguments of counsel and the law governing the issue, we agree that the district court erred by removing Wolfe as executor and that the circuit court erred in affirming the decision of the district court. Consequently, we reverse and remand.

Roy Clement Wolfe, a resident of Boyle County, died testate on February 21, 2014. His will was admitted to probate on March 20, 2014. Article I directed that the decedent’s just debts, funeral expenses,, taxes, and costs of administration be .paid out of the residuary estate.

Article II granted Wolfe the exclusive option to purchase from the estate a log cabin located in Russell Springs—including all its furnishings. The will provided that Wolfe could buy the property within six months at the value assessed by the property valuation administrator on the date of death, and it authorized a partial distribution of the estate to enable Wolfe to pay for the real property.

Article III bequeathed to Wolfe “all of my tools and any boat owned by me at the time of my death.”

Article IV bequeathed to the decedent’s surviving children the household furniture and tangible personal property in his Dan-ville home. The property was to be divided by agreement; if agreement could not be reached on any item within sixty days of death, the item was to be sold by the executor with the proceeds to be added to the residuary clause.

Article V provided that the residue of the estate would be divided in equal shares among the decedent’s daughters, Michelle Young; Paula Vanover; Marla Hays; and his son, Roy Gregory Wolfe (per stirpes). Finally, the will named Roy Gregory Wolfe as executor of the estate.

Wolfe was duly appointed by order of the Boyle District Court. In his capacity as executor, Wolfe filed an inventory of his father’s estate on May 16, 2014. •

’ The inventory reported assets having a total estimated value of $1,276,269.00 and included; a position in Duke Energy valued at $518,345; a position in Spectra Energy Corp. valued at $408,924; the residence in Danville valued at $155,000; the cabin in Russell Springs valued at $130,000; two insurance .policies valued at $27,000; tools at the Danville residence (including a lawn mower) valued at $15,000; tools at the cabin (including a lawn tractor) valued at $15,000; and a number of items of tangible personal property.

On. June 5, 2014, through counsel, the decedent’s daughters sent a letter to their brother demanding that Wolfe amend the inventory or otherwise account for assets that they alleged had been omitted from their father’s estate. They contended that the inventory failed to include a 2008 truck (valued at $12,000); a man’s diamond ring (valued at $25,000); a German carving set; a blue oriental bowl & plate; some glassware; some old love letters; a long, black coat; a purple heart medal; “silver”; guns; and some “new hand weights.” They contested Wolfe’s classification of the mower and yard tractor as “tools” and suggested that this alleged misclassification could constitute a breach of his fiduciary duties. They also objected to Wolfe’s failure to allow them access to the real property and his decision to expend estate funds to improve the real property without notice to them—including some $7,000 spent on the [600]*600cabin and $13,000 on the Danville residence, which they preferred to sell “as is.” Finally, they requested that the Duke Energy and Spectra Energy Corp. stock be distributed to them in kind.

On June 16, 2014, Wolfe responded to the letter, explaining his decisions and disposition of the disputed property. He denied that he intended to deprive his sisters of access to the real property and indicated that he had changed the locks only because he did not know if his father’s caregivers had retained keys to the property. He specifically denied any breach of fiduciary duty to the estate.

On July 28, 2014, Young, Vanover, and Hays filed a motion in the district court demanding that Wolfe be removed as executor of the decedent’s estate. They alleged that Wolfe had mismanaged the estate’s assets. Wolfe responded to the motion and denied the allegations.

On April 30, 2015, the district court conducted an evidentiary hearing on the motion. Young, Vanover, and Hays presented their testimony challenging Wolfe’s possession of the truck, the diamond ring, the tractor, and the lawnmower. They also testified concerning their objections to the expenses incurred with respect to the decedent’s homes and the disputed liquidation and distribution of the Duke Energy and Spectra Energy stock.

Wolfe testified that his father had given him the pickup truck prior to his death and that he had given him the man’s diamond ring over a decade earlier with the explanation that Wolfe’s mother had intended for him to have it. Wolfe explained that he had interpreted the provision of decedent’s will leaving to him “all of my tools and any boat owned by me at the time of my death” to include the tractor and the lawnmower. He indicated that the expenditures for the upkeep of the real property owned by the decedent at his death were made while the properties remained in the estate and were necessary to fulfill Wolfe’s obligations as executor to preserve the property.

With respect to his sale of the disputed stock, Wolfe testified that there were insufficient liquid assets in the estate to pay the decedent’s funeral expenses and expenses related to the estate’s administration after his sisters had distributed the funds from the decedent’s payable-on-death checking account. Wolfe explained that he had liquidated the Spectra Energy stock (at a market high) before he received the letter requesting its in-kind distribution and pursuant to his authority under the terms of the will and the provisions of KRS1 395.200. Concerning the Duke Energy stock, Wolfe indicated that the sale of part of the position did not affect the request of the remaining beneficiaries’ request for a distribution in kind and that he had taken a partial distribution of the stock pursuant to the provision of the will that entitled him to make that distribution if it was necessary to enable him to purchase the cabin in Russell Springs from the estate. Finally, Wolfe indicated that he had hired an accountant to assist him in his responsibilities as executor.

On December 4, 2015, the district court entered its order. The court did not make findings of fact concerning the allegations underlying the motion and did not rule on the specific claims asserted by Young, Vanover, and Hays. After considering the evidence, the court concluded that there existed a “controversy which constitutes a conflict of interest and potential breach of fiduciary duty” by Wolfe. It held that “the nature of the disputes are so severe” that Wolfe “is incapable of performing his duties” as executor. By its order entered [601]*601on December 4, 2015, the district court removed Wolfe as executor and substituted Chris Herron, a local attorney, to serve as public administrator of the decedent’s estate.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Phoebe Adkins v. Lora Conley
Court of Appeals of Kentucky, 2023

Cite This Page — Counsel Stack

Bluebook (online)
521 S.W.3d 598, 2017 Ky. App. LEXIS 567, 2017 WL 2491661, 2017 Ky. App. Unpub. LEXIS 423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wolfe-v-young-kyctapp-2017.