Most undue influence cases are seen in probate courts with petitions for guardianships, conservatorships, and with disputed wills and trusts. Don't miss the crucial news and insights you need to make informed legal decisions. First, she argued that the trial court abused its discretion in allowing the daughters to re-open their case-in-chief to call her as a witness after Eve had rested her case. This communication was published on the date specified and may not include any changes in the topics, laws, rules or regulations covered. The mother was described as strong-willed, forceful, and intense about her decisions and the evidence strongly showed that the mother was in possession of her mental faculties at the time the documents disinheriting the plaintiff were drafted. That means the same facts and circumstances that you use to directly prove undue influence to overturn Trusts and Wills are also used (or usable) to bring a financial elder abuse claim based on undue influence. Bootstrapping describes a situation in which an entrepreneur starts a company with little capital, relying on money other than outside investments. About Us| This alone was insufficient to create a question of material fact as to whether Stuart lacked mental capacity or was unduly influenced when he executed his final will. All Rights Reserved. The trial court granted Amelias motion, concluding that Wylie failed to present sufficient evidence of undue influence and lack of testamentary capacity. Eve and William married about seven months after Doreens death, and neither Cathy nor Paula were invited to, or attended, the wedding. Ernie starts talking to Bert about how he has heard about units for sale in the complex that Bert is invested in developing. undue influence cases. Between 2014 and 2016, Stuart changed his will three more times. The Court of Appeals held that her interests and motives were relevant to the determination of whether she exercised undue influence over William and the trial court was well within its rights to observe her demeanor and evaluate her credibility. It could even apply to totalitarian regimes that act to control populations since the elements are similar. Copyright 2023 ALM Global, LLC. is here to assist with your undue influence case. Eventually, it was determined that the assets should be split between the four children. New Probate Code section 21385 provides that an at-death asset transfer between spouses, whether by will, trust, beneficiary form, or other instrument, is not subject to the presumption of undue influence in Family Code section 721, effectively overriding the Lintz case. LexisNexis and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. The trial court was convinced that Eve exercised undue influence over William due to multiple facts presented at trial, including the dramatic shift in his estate plan only one month before his death and Eves involvement in procuring his will and surrendering his life insurance policy. The conduct must be such that the court finds that the transfer or disposition was not the true will or free intention of the victim. The elements of that definition which are still in effect for contract law are: The research study prompted the second response: landmark legislation modernizing the definition of undue influence. The mother and son had a trusting relationship. Depending on the measure of influence and if there were any extraneous factors involved, some agreements can be legally voided. The ruling affirms an award of $391,040 in damages and $200,495 in prejudgment interest to Adkins. 1992). But in November 2014, Stuart again changed his will, naming Amelia sole executor and beneficiary of his residual estate, and rescinding Wylies bequest. While AB 327 treats surviving spouses favorably, AB 328 takes the opposite approach with respect to care custodians who marry elders. This case therefore requires the Bo ard to examine and apply the law on undue influence that was so rigorously and helpfully analysed by the House of Lords in the Delaware's definition for undue influence is "an excessive or inordinate influence considering the circumstances of a particular case" while Indiana's case law states that undue influence is "the exercise of sufficient control over the person, the validity of whose act is brought into question, to destroy his free agency and constrain him to do what he would not have done if such control had not been exercised." 513 Farmhouse Rd. Contact Us| Jul. Customer Service| at 371-380 (citing the psychological study by Robert B. Cialdini, Influence: The Psychology of Persuasion). Undue influence "denotes conduct that causes the testator to accept the 'dominance and influence of another' rather than follow his or . The Faegre Drinker Biddle & Reath LLP website uses cookies to make your browsing experience as useful as possible. We explore issues of mental capacity, undue influence, fiduciary duty, and financial elder abuse. Receipt of this communication does not establish an attorney-client relationship. Eve challenged only one finding of fact the trial courts condemnation of her demeanor and determination that she did not love William. A daughter was living with her father who was in his 80s and in poor health. Statutes, for the most part, provide clear examples of which cases meet the necessary criteria for undue influence. The case turned in large part on the issue of whether the alleged undue influencers were in a confidential relationship with the decedent. He notified the prior beneficiaries that he suspected that there was a new will disinheriting them. The U.S. Court of Appeals for the Third Circuit has upheld a ruling directing attorney John Sogliuzzo to repay $591,535 on a claim that he exercised undue influence to take the assets of an. In addition, all four are not required to determine if undue influence has occurred. Yes. %PDF-1.6 % The Social Influence Model is a much-needed framework for experts to be able to do a competent job presenting a forensic analysis of undue influence in courts. /content/aba-cms-dotorg/en/groups/law_aging/publications/bifocal/vol_35/issue_3_feb2014/defining_undue_influence, Vol. Consulting Magazine recognizes women leaders in technology across three categories Leadership, Client Service and Innovation. Undue influence occurs when an individual is able to use an advantage to coerce another party's decisions. Our seasoned attorneys have extensive backgrounds in estate planning, uncontested probate and guardianship, law enforcement . Focus groups composed of various professional groups including Adult Protective Services professionals, Public Guardian professionals, and private bar attorneys discussed their perspectives on undue influence. Although Eve had listed herself as a witness, she did not testify during her case-in-chief, and the daughters also had not called her to testify. Undue influence most commonly occurs when a more powerful party exerts its influence over a less powerful party in order to achieve its desired outcome. Undue influence is a common ground to challenge a will or trust. This applies to most states with case law, and thus there is definite room for improvement, which could be made in the form of creating undue influence statutes so that the elements are less subjective overall. Ultimately, the trial court declared that the purported will was invalid due to Williams lack of capacity and Eves undue influence over him, and it ordered that Williams estate be distributed as if he had died intestate. With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. The takeaway from this opinion is the Third Districts explanation that the factors in the seminal case of In re Carpenters Estate, 253 So. Join New Jersey Law Journal now! The elements are 1: victim appears to be vulnerable, 2: suspected influencer appears to have power or authority over the client, 3: suspected influencer has taken steps suggestive of undue influence, and 4: the influencer's actions appear to have resulted in unfair, improper, or suspicious outcomes. Evidence of vulnerability may include, but is not limited to, incapacity, illness disability, injury, age, education, impaired cognitive function, emotional distress, isolation, or dependency where the influencer knew of, or should have known of, the alleged victims vulnerability. The father began operating the business, paid off the loan in full and attempted to sell the sons business. October 2020 The MLO Minute: By, Jessica Wilson, Esq. Undue Influence and Vulnerable Adults, ABA 2020. We comment on local court practices, including procedures in Department 129 (the probate unit) of Sacramento County Superior Court. That number is expected to grow to 19% of the population by 2030. The Appellate Division affirmed the trial court decision. 13, 2011). William had been diagnosed with depression, anxiety and congestive heart failure following Doreens death. To prove a claim of undue influence, one must prove four elements: 1) that the testator was susceptible to undue influence, 2) that there was an opportunity to exercise that undue influence, 3) that the party had a disposition to unduly influence, and 4) that there was damage done to another solely due to the undue influence. 1-296/10-0938, 2011 Iowa App. The tool provides four main factors to be evaluated when determining if the individual in question has been a victim of undue influence. An opportunity to exercise influence; 2. Each of the parties remains an independent entity. Eve also claimed that the trial court erred in concluding Williams will was invalid. Following Lintz, surviving spouses were in a weaker position than other family members when accused of undue influence. Their mother had died in April 2016. Your membership has expired - last chance for uninterrupted access to free CLE and other benefits. It's time to renew your membership and keep access to free CLE, valuable publications and more. A particularly clear definition of undue influence is found in the California's Welfare and Institutions Code 15610.70, meaning "excessive persuasion that causes another person to act or refrain from acting by overcoming that person's free will and results in inequity." Some relationships, such as one between a patient and a doctor or a parent and a child, are considered to run the risk of undue influence and are legally outlined. The ruling affirms an award of $391,040 in damages and $200,495 in prejudgment interest. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem. To overcome the presumption and obtain the benefit of the donative transfer, the care custodian must prove the absence of fraud or undue influence by clear and convincing evidence. For instance, Connecticut's statute on undue influence describes the four elements of Undue influence as being (1) a person who is subject to influence; (2) an opportunity to exert undue influence; (3) a disposition to exert undue influence; and (4) a result indicating undue influence. When the mother died, the plaintiff learned of his disinheritance and promptly sued his brother for unduly persuading his mother to change her estate plan. A petition was filed for the Public Guardian to be appointed the guardian of person and estate for Ms. R. The Western Union office had contacted Adult Protective Services with concerns about the amount of money Ms. R. was wiring to another country. The husband died first, and his wife inherited the assets of his estate. The law targets paid care custodians as they are defined in Probate Code section 21362. Ms. McKissock describes this type of exploitation as marrying into elder abuse. Marriage is easy to accomplish, difficult for a third party to challenge, and confers automatic rewards on surviving spouses. From 1992 until less than two months before his death, Stuart drafted a series of new wills, changing the nature of his bequest, the beneficiaries of that bequest, and the wills executors. Betty has dementia that has eroded her short term memory and otherwise impaired her thinking. In re Estate of Dilley, No. This inequity in power between the parties can vitiate one party's consent as they are unable to freely exercise their independent will. Under AB 328, Chad would have to prove with highly compelling evidence that Betty knowingly and voluntarily entered into the marriage with him, which will be difficult for him to do. With this demographic shift comes increased focus on the telemarketers and lottery scams that target these vulnerable adults. 2017-001131, 2020 WL 1542114 (S.C. Ct. App. While this is not likely, it is possible because the new definition and factors merely requires that the judge or jury consider them. She also told her father, Well the other kids wont help. If the elder has no estate plan, the surviving spouse is entitled by Californias rules of intestacy to the elders share of their community property and to at least a half share of the elders separate property. Complicating the matter is that undue influence is often linked to impaired cognitive capacity even though it frequently occurs when the elder clearly has capacity. The pdf for the issue in which this article appears is available for download:Bifocal,Vol. The issue in this case was whether a son had to reimburse his fathers estate. We hope that our blog will be of interest to estate planning professionals and to family members immersed in trust and estate disputes. Ms. R. would not tell her sister who the caller was or what the call was about. The father was terribly distressed over his sons actions and failure to make payments, especially since the money was owed to the bank and he owed a fiduciary duty to the board of the bank. California trust and estate disputes often involve allegations that a surviving spouse took advantage of a deceased spouse so as to get more of the latters assets. These differences are especially evident in states that define undue influence through case law when compared to states that provide definitions through statutes. Read on to find out what undue influence is, and how it's proved in court. (Note:The pdf for the issue in which this article appears is available for download: BIFOCAL Vol. To view this content, please continue to their sites. U.S. research may be subject to undue foreign influence in cases where a researcher has a foreign conflict of interest (COI). It may also be present in some criminal cases. This may be because: Undue influence may often be found when there are vulnerabilities, isolation, and dependency. Later it was learned that Ms. R. was talking to her dear friend who lived in a different country and who was going to make certain that Ms. R. received a million dollars if only she would send more money nowit was a Jamaican lottery scheme. Adrian Philip Thomas, P.A. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. A receivership is a court-appointed solution that can assist creditors to recover funds in default and help troubled companies to avoid bankruptcy. Why should spouses be treated with more suspicion than other close family members who are also in positions of influence with respect to elders? These case law examples showcase the ambiguities that are widely present in undue influence definitions. The issue is particularly important because the number of people over 65 is increasing nationwide. 3300 PGA Blvd, Suite 600Palm Beach Gardens, FL 33410. The appeal in this case followed the decision of the Supreme Court not to set aside two default judgments entered against Keimon Lawrence and his father, Keith James. A will contest took place. 2d 697, 702 (Fla. 1971) are not an exhaustive list, but rather are illustrative and aid the trial court in looking for those warning signals pointing to active procurement of a will by beneficiary. (Citations omitted.). A mother sold her farm to her son who had been living with her at the time. Michael Laury, Sr., appellant pro se. It was held by the Court of Appeal that manifest disadvantage for the purposes of the doctrine of undue influence had to be a disadvantage which was obvious as such to any independent and reasonable person who considered the transaction at the time with knowledge of all the relevant facts. In re Estate of Stockdale, 196 N.J. 275, 302-03 (2008) (citing Haynes v. First Natl State Bank, 87 N.J. 163, 178 (1981)). He has handled a broad array of matters over his 30 year career ranging from transactional matters to a variety of trials in both the Law and Chancery Divisions of the N.J. Superior Court for business and individual clients. In June 2009, the son was arrested for drug abuse and defaulted on the loan. P.C. {15} In order to show undue influence, the plaintiff must demonstrate: (1) a susceptible testator, (2) another's opportunity to exert influence, (3) the fact of improper influence exerted or attempted, and (4) the result showing the effect of such influence. Often, one of the parties is in a position of power over the other due to elevated status, higher education, or emotional ties. In June 2014, Stuart executed a will naming Wylie the sole executor and beneficiary of his residual estate. Undue influence cases are complicated, sophisticated matters . Most undue influence cases are seen in probate courts with petitions for guardianships, conservatorships, and with disputed wills and trusts. He purchased an extravagant house in the city of Fishers that was titled in both his and Eves names, though only paid for by William. CP-330-2020. In 2009, the San Francisco Probate Court, aided by the California Administrative Office of the Courts, undertook a research study with funding from the Borchard Foundation Center on Law and Aging. Alternatively, the newlywed caregiver might arrange for the elder to sign documents, such as a trust amendment, that substantially benefit the caregiver and avoid the presumption of undue influence that otherwise applies to caregivers. LexisNexis and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information. The Court of Appeals noted that Indiana Code 29-1-7-17 offers several grounds upon which a will can be declared invalid. Similarly, Stuarts attorneys stated that Stuart understood his new estate plan and was of sound testamentary capacity to execute his will. Then the burden shifts to the person who conducted the influence to rebut the presumption by presenting evidence to the contrary. About a year later, one of the brothers wrote a letter to the disinherited nieces and nephews expressing his concern about the nieces influence on his sister. The trial court found no evidence of undue influence, in this case, and refused to invalidate the 2004 will and trust. After reviewing the record, the Appellate Division noted that despite the trial judges repeated requests, Wylie failed to present evidence concerning Stuarts mental capacity other than her own speculation and Stuarts several alterations to his will. We represent individuals throughout South Florida, including Palm Beach County, Broward County, Okeechobee County, Martin County and St. Lucie County, as well as the surrounding communities of Palm Beach Gardens, Palm City, West Palm Beach, Jupiter, Wellington, Palm Beach, Stuart, Fort Pierce, Port St. Lucie, North Palm Beach, Juno Beach, Hobe Sound, Boca Raton, Boynton Beach and Lantana. The four factors are weighted equally, which means that no factor is more important than another. Evidence of apparently authority may include but is not limited to, status as a fiduciary, family member, care provider, health care processional, legal professional, spiritual adviser, expert, or other qualification. Bailment describes the transfer of property from a bailor, who temporarily relinquishes possession but not ownership of the property, to a bailee. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Additionally, Wylie did not offer evidence of suspicious circumstances and failed to demonstrate that Stuart and Amelias marriage differed from any other twenty-five year relationship. Ames, Iowa 50011, Phone: (515) 294-5217 In contract law, a party claiming to be the victim of undue influence may be able to void the terms of the agreement. We discuss trust contests, will contests, and administration disputes. As Ms. McKissock explained, the Executive Committee of the Trusts and Estates Section considered this asymmetry in the five-year period after Lintz, eventually recommending a fix in AB 327. In this case, two brothers became embroiled in a bitter lawsuit over their mothers estate and the sale of a tract of real estate. How Financial Advisers Can Protect Themselves Against Lawsuits, What Is a Fiduciary Duty? The father served as guarantor on his sons bank loan, and paid it off when the son defaulted. What Is a Pyramid Scheme? On the issue of susceptibility, the appellate court held that the mother was not susceptible. Here, a childless married couple executed separate wills leaving their assets to each other and then to their surviving siblings, nieces and nephews upon their deaths. With the exception of purported undue influence by a spouse, undue influence is presumed when (i) a person with a confidential relationship with the testator, (ii) was active in procuring or securing the preparation or execution of the devise and (iii) is a substantial beneficiary thereof. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas. Youngblut, 945 N.W.2d 25, 36-37 (Iowa 2020): To prevail either on and undue influence claim or a tortious-interference claim where the plaintiff is challenging conduct leading to a new will, the plaintiff must prove an outsider overcame the testator's independent will. However, many states still rely on case law or vague statutes to define undue influence. All rights reserved. The appellate court did find that both brothers lived close enough to their mother to have the opportunity to unduly influence their mother. In all those situations, courts consider evidence indicating that undue influence may or may not have already happened. The fathers will specified that his two living sons were the sole beneficiaries of his estate- share and share alike, absolutely. The son who received the fathers bailout claimed that this was a gift.