Angleton v. Estate of Angleton, 49A05-9510-CV-413

• Citation: 671 N.E.2d 921
• Decision Date: 22 October 1996
• Docket Number: No. 49A05-9510-CV-413,49A05-9510-CV-413
• Parties: Brad C. ANGLETON, Appellant-Petitioner, v. ESTATE OF Cheryl Ann ANGLETON, Deceased; Shirley Adkins, Administratrix, Appellee-Respondent.
• Court: Indiana Appellate Court

Page 921

671 N.E.2d 921

Brad C. ANGLETON, Appellant-Petitioner, v. ESTATE OF Cheryl Ann ANGLETON, Deceased; Shirley Adkins, Administratrix, Appellee-Respondent.

No. 49A05-9510-CV-413.

Court of Appeals of Indiana.

Oct. 22, 1996.

Brad C. Angleton, Michigan City, Pro Se. ¹

John V. Commons, Indianapolis, for Appellee-Respondent.

OPINION

BAKER, Judge.

Appellant-petitioner Brad C. Angleton appeals the order of the Marion Probate Court denying his claim against the Estate of Cheryl Ann Angleton, Shirley Adkins, Administratrix (Estate) and declaring him a constructive trustee of property he was entitled to receive due to the death of his wife, Cheryl Angleton. Brad raises numerous issues for review, which we combine and restate as: 1) whether the probate court erred in declaring him a constructive trustee; 2) whether the court erred in refusing to disqualify the attorney for the Estate; and 3) whether the court erred in refusing to stay the estate proceedings.

FACTS

On April 9, 1993, Cheryl Ann Angleton died intestate. At the time of her death, Cheryl owned two life insurance policies. The first policy, with ITT Hartford Life Insurance Companies, had a value of $300,000 and listed Brad C. Angleton as the beneficiary. The second policy, with Secura Life, had a value of $100,000 and listed Brad C. Angleton as the primary beneficiary and Cheryl's brother, Harold M. Adkins, as the contingent beneficiary.

On April 27, 1994, Brad was convicted of murdering Cheryl and, on July 12, 1994, sentenced to fifty-five years imprisonment. ² On July 19, 1994, an estate was opened by Shirley Adkins, Cheryl's mother, who requested that she be appointed personal representative of the Estate. The attorney for the Estate, John V. Commons, was previously involved in Brad's prosecution for Cheryl's death. In October 1994, ITT Hartford paid the proceeds of its policy into the Estate. Thereafter, on December 16, 1994, Brad filed a claim against the Estate arguing that he was entitled to the Estate assets as beneficiary of the policy. Brad also filed claims seeking a trial on the underlying facts of the murder, a declaration of his rights, the disqualification of the Estate attorney and the Administratrix and a stay of the distribution of the Estate property.

On February 12 and September 12, 1995, the probate court held a hearing on Brad's claims. During the hearing, the Estate presented evidence to establish that Brad had been convicted of Cheryl's death, including certified copies of Brad's indictment and the abstract of judgment. At the conclusion of the Estate's evidence, Brad moved for judgment on the evidence, which the court denied. On September 18, 1995, the court entered its order denying Brad's requests to have the Estate attorney disqualified and to stay the proceedings and declaring Brad a constructive trustee of any property he would have received as a result of Cheryl's death.

DISCUSSION AND DECISION ³

I. Constructive Trustee

First, Brad challenges the probate court's determination that he is a constructive trustee of the property he would have received due to Cheryl's death. Brad raises nine issues regarding the probate court's order, which we separate into two general categories: 1) whether the constructive trust statute, IND. CODE § 29-1-2-12.1, is applicable to the Estate; and 2) whether the trial court erred in refusing Brad's request to introduce evidence of his culpability prior to his adjudication as a constructive trustee.

A. Constructive Trust Statute

First, we address Brad's argument that the constructive trust statute is inapplicable to the Estate. The relevant part of I.C. § 29-1-2-12.1 provides as follows:

(a) A person is a constructive trustee of any property that is acquired by him or that he is otherwise entitled to receive as a result of a decedent's death, if that person has been found guilty, or guilty but mentally ill, of murder, causing suicide, or voluntary manslaughter, because of the decedent's death. A judgment of conviction is conclusive in a subsequent civil action to have the person declared a constructive trustee.

(b) A civil action may be initiated to have a person declared a constructive trustee of property that is acquired by him, or that he is otherwise entitled to receive, as a result of a decedent's death, if:

(1) the person has been charged with murder, causing suicide, or voluntary manslaughter, because of the decedent's death; and

(2) the person has been found not responsible by reason of insanity at the time of the crime.

If a civil action is initiated under this subsection, the court shall declare that the person is a constructive trustee of the property if by a preponderance of the evidence it is determined that the person killed or caused the suicide of the decedent.

According to Brad, the probate court did not have the authority to adjudicate him a constructive trustee because the statutory preconditions to initiating a civil action, specifically those listed in I.C. § 29-1-2-12.1(b)(1) and (2), have not been met. Further, Brad claims that no cause of action to declare him a constructive trustee was ever initiated by the Estate. Finally, Brad argues that even if the statute is applicable, the trial court erred in determining that the statute precludes Brad from receiving any of the Estate property. ⁴

Brad correctly interprets I.C. § 29-1-2-12.1(b) to require that a person be charged with murder, causing suicide or voluntary manslaughter and found not responsible by reason of insanity as a prerequisite to initiating a civil action to declare a person a constructive trustee. However, I.C. § 29-1-2-12.1(b) is inapplicable to the instant case. Instead, the probate court declared Brad a constructive trustee pursuant to I.C. § 29-1-2-12.1(a), which provides that a person is a constructive trustee if he or she has been found guilty or guilty but mentally ill of murder, causing suicide or voluntary manslaughter. Brad's interpretation of the statute would render I.C. § 29-1-2-12.1(a) meaningless and is clearly not in keeping with the legislature's intent. See Willis v. State, 492 N.E.2d 45, 47 (Ind.Ct.App.1986) (where possible, every word in statute must be given effect and meaning; no part is held meaningless if it can be reconciled with rest of statute).

Additionally, we reject Brad's argument that the probate court was without authority to declare him a constructive trustee because no civil action was initiated by the Estate for this purpose. Here, in her petition to open the Estate, Adkins sought to be declared the Estate's personal representative on the basis that the "spouse has forfeited rights having been convicted of murdering the decedent under Cause no. 49G03-9309-CR-111404." R. at 5. Thereafter, Brad filed claims challenging the court's appointment of Adkins as the personal representative and seeking the proceeds of the Estate, which the Estate disallowed. R. at 23. At that time, a controversy arose over Brad's status as constructive trustee. The hearing on the disallowance of Brad's claim against the Estate constituted a civil action and, as a result, the probate court had the authority to conduct proceedings to declare Brad a constructive trustee. See IND. CODE § 29-1-14-21 (person who claims interest in Estate property may file petition with court and case shall be set for trial and tried as ordinary civil action).

Finally, Brad argues that the probate court erred in determining that I.C. § 29-1-2-12.1 precluded him from receiving the proceeds of Cheryl's insurance policies. Specifically, Brad contends that pursuant to Geo. Pfau's Sons Co., Inc. v. Neal, 665 N.E.2d 68 (Ind.Ct.App.1996), a probate court must first order the insurance proceeds paid to Brad and, then, declare those proceeds subject to a constructive trust. We disagree.

In Geo. Pfau's Sons, a company refused to pay a survivorship annuity because the recipient of that annuity had been convicted of her husband's murder. The company claimed it could not pay the annuity benefits to the surviving spouse because of I.C. § 29-1-2-12.1 but that it could not pay the benefits to the Estate because the plan provided that benefits could only be paid to a surviving spouse. This court held that in providing that a wrongdoer is the constructive trustee of benefits she is entitled to receive, I.C. § 29-1-2-12.1 does not relieve potential payers of the obligation to pay such benefits. Id. at 69, 70. Instead, the statute merely changes the distribution of the benefits once the offender receives them. Id.

Clearly, the intent of this court in Geo. Pfau's Sons was to ensure that benefits due a surviving spouse were not extinguished due to the spouse's wrongdoing. The intent was not to require that benefits be delivered into a wrongdoer's hands only to pass, later, to the remaining beneficiaries. Such an interpretation would have no purpose, as the wrongdoer's possession of the money would be fleeting. In fact, such an interpretation could possibly generate future problems as wrongdoers would be tempted to disrupt the flow of the money to the ultimate beneficiaries. We cannot countenance such a result. Thus, we find no error in the probate court's application and implementation of the constructive trust statute. ⁵

B. Evidence of Culpability

Next, Brad contends the probate court erred in refusing to allow him to present evidence regarding his culpability for Cheryl's death during the constructive trustee proceedings. During the hearing, the Estate presented certified copies of the grand jury's indictment of Brad and the abstract of judgment as proof of Brad's conviction for murder. R. at 380-81. The court denied Brad's request to present evidence on the underlying facts of the conviction. R. at 208, 389. Thereafter, the probate court found the Estate's evidence to be conclusive and declared Brad a constructive trustee. R. at 388-90. Brad argues the court erred for the following reasons:

1) a judgment of conviction...