Estate of Lahren, Matter of, No. 94-209

Docket NºNo. 94-209
Citation268 Mont. 284, 886 P.2d 412
Case DateDecember 13, 1994
CourtUnited States State Supreme Court of Montana

Page 412

886 P.2d 412
268 Mont. 284
In the Matter of the ESTATE OF Sylvester L. LAHREN, Deceased.
No. 94-209.
Supreme Court of Montana.
Submitted on Briefs Sept. 8, 1994.
Decided Dec. 13, 1994.

[268 Mont. 285] Joseph B. Gary and Calvin L. Braaksma, Landoe, Brown, Planalp & Braaksma, Bozeman, for appellant.

Dan L. Spoon, Reep, Spoon & Gordon, Kevin S. Jones, Christian & Samson, Missoula, for respondents.

NELSON, Justice.

This is an appeal from a Sixth Judicial District Court, Park County, order determining that the certificates of deposit at issue were held in joint tenancy with right of survivorship by Sylvester L. Lahren's (S.L. Lahren's) granddaughter, Signe Lahren (Signe). We affirm in part and reverse in part.

ISSUES

There are two issues on appeal:

I. Did the District Court err in determining that the bank certificates of deposit, which designate one depositor and one "P.O.D." beneficiary, are joint tenancy instruments?

II. Did the District Court err in determining that the P.O.D. designations on the bank certificates of deposit act to transfer the certificates outside of the probate estate at the time of the depositor's death as a non-testamentary transfer?

FACTUAL AND PROCEDURAL BACKGROUND

S.L. Lahren died testate on June 25, 1992. He bequeathed the residue of his estate, less

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items of personal property which he had specifically devised, to three of his four sons, namely Larry, Daniel and S.L. Lahren Jr. However, the bulk of S.L. Lahren's estate consisted of four bank certificates of deposit (CDs) at American Bank, formerly known as First Security Bank.

The four CDs include: Certificate Number 32989, issued on January 15, 1985, Certificate Number 33220, issued on June 15, 1989, Certificate Number 33493, issued on March 9, 1990, and Certificate Number 34197, issued on October 8, 1991. On three of the four CDs, the depositor was listed as S.L. Lahren P.O.D. Signe Lahren. The fourth CD named as depositor, S.L. or Signe Lahren. Signe is not only [268 Mont. 286] S.L. Lahren's granddaughter, but also the personal representative of S.L. Lahren's estate.

As stated in her memorandum in support of her motion for an order determining that the CDs were joint tenancy property, Signe originally retained legal counsel from Livingston as recommended by one of her uncles. Counsel informed her that he believed that the CDs were estate property. Signe sought a second opinion on the status of the CDs and came to believe through independent review and evaluation that the CDs were actually property held in joint tenancy with right of survivorship.

On June 21, 1993, with her new counsel, Signe filed her motion for an order determining whether the CDs were joint tenancy property. On June 23, 1993, the District Court filed an order requesting additional briefs on the respective positions of the parties regarding the status of the CDs at issue. Appropriate briefs were filed and on February 22, 1994, the District Court determined that the CDs were joint tenancy property. The order was certified as final and appealable on the joint tenancy question. This appeal followed.

ISSUE I--JOINT TENANCY

Appellants argue that the District Court erred in determining that the three CDs at issue were joint property with right of survivorship. (The fourth CD which named the depositor as, S.L. Lahren or Signe Lahren, is not at issue on this appeal.) They contend that Signe did not have a present interest in the CDs and therefore, she had no joint tenancy or joint interest in the CDs.

In a fairly recent opinion, Matter of Estate of Shaw (1993), 259 Mont. 117, 855 P.2d 105, we provided some guiding principles for determining whether property is held in joint tenancy. In Shaw, we held that the creation of a joint interest or joint tenancy in property is by Montana statute. Shaw, 855 P.2d at 111. "Sections 70-1-307 and 70-1-314, MCA, mandate that if parties want to create a joint tenancy (same as joint interest) in property, they must make an express declaration that they intend to create a joint tenancy or joint interest." Shaw, 855 P.2d at 111. (Emphasis added.) Absent an express declaration of intent that the ownership interest be held in joint tenancy or joint interest, then a tenancy in common or interest in common is created. Shaw, 855 P.2d at 111.

Section 70-1-307, MCA, defines joint interest as:

A joint interest is one owned by several persons in equal shares by a title created by a single will or transfer, when expressly [268 Mont. 287] declared in the will or transfer to be a joint tenancy or when granted or devised to executors or trustees as joint tenants.

Section 70-1-314, MCA, explains how an interest in common is created:

Every interest created in favor of several persons in their own right, including husband and wife, is an interest in common unless acquired by them in partnership for partnership purposes or unless declared in its creation to be a joint interest, as provided in 70-1-307.

We are left to determine whether S.L. Lahren made an express declaration that the property was to be held in joint tenancy or joint interest, thus creating a joint tenancy or joint interest in the property. The certificates state on the front in printed form:

'You' means the depositor(s) named above.... If more than one of you are named above, you will own this certificate as joint tenants with right of survivorship, (and not as tenants in common.) (You may change this ownership by written instructions.)

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We will treat any one of you as owner for purposes of endorsement payment of principal and interest, presentation (demanding payment of amounts due), transfer and any notice to or from you. Each of you appoints the other as your agent, for the purposes described above. We will use the address on our records for mailing notices to you. You cannot transfer or assign this certificate or any rights under it without our written consent.

Signe argues that this is the express declaration required under Shaw to create a joint...

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9 practice notes
  • B-Bar Tavern Inc. v. Prairie Mountain Bank (In re B-Bar Tavern Inc.), Bankruptcy No. 12–60228–11.
    • United States
    • United States Bankruptcy Courts. Ninth Circuit. U.S. Bankruptcy Court — District of Montana
    • 18 Diciembre 2013
    ...partly written words and partly language in preprinted form, the written words control the pre-printed form. Matter of Estate of Lahren, 268 Mont. 284, 288, 886 P.2d 412, 414 (1994). Therefore, subject to PMB's counterclaim for reformation, Dick's handwritten date of “3/25/9” controls and E......
  • Drescher v. Malee, DA 21-0619
    • United States
    • Montana United States State Supreme Court of Montana
    • 18 Octubre 2022
    ...338 Mont. 12, 161 P.3d 833 ("[t]enants in common own several and distinct titles to their [common] property"); In re Estate of Lahren, 268 Mont. 284, 286, 886 P.2d 412, 413 (1994) (property interests created in favor of "several persons" create a tenancy in common "[a]bsent an express decla......
  • Drescher v. Malee, DA 21-0619
    • United States
    • Montana United States State Supreme Court of Montana
    • 18 Octubre 2022
    ...338 Mont. 12, 161 P.3d 833 ("[t]enants in common own several and distinct titles to their [common] property"); In re Estate of Lahren, 268 Mont. 284, 286, 886 P.2d 412, 413 (1994) (property interests created in favor of "several persons" create a tenancy in common "[a]bsent an express decla......
  • Scottrade, Inc. v. Davenport, Case No. CV–11–3–BLG–RFC.
    • United States
    • United States District Courts. 9th Circuit. United States District Court (Montana)
    • 5 Junio 2012
    ...law expressly recognizes TOD Plans such as the one executed in this case as valid, nontestamentary transfers. Matter of Estate of Lahren, 268 Mont. 284, 886 P.2d 412, 415–16 (1994), citingMont. Code Ann. § 72–6–111. Upon Jim LeFeber's death on September 15, 2010, SSUF, ¶ 83, ownership of th......
  • Request a trial to view additional results
9 cases
  • B-Bar Tavern Inc. v. Prairie Mountain Bank (In re B-Bar Tavern Inc.), Bankruptcy No. 12–60228–11.
    • United States
    • United States Bankruptcy Courts. Ninth Circuit. U.S. Bankruptcy Court — District of Montana
    • 18 Diciembre 2013
    ...partly written words and partly language in preprinted form, the written words control the pre-printed form. Matter of Estate of Lahren, 268 Mont. 284, 288, 886 P.2d 412, 414 (1994). Therefore, subject to PMB's counterclaim for reformation, Dick's handwritten date of “3/25/9” controls and E......
  • Drescher v. Malee, DA 21-0619
    • United States
    • Montana United States State Supreme Court of Montana
    • 18 Octubre 2022
    ...338 Mont. 12, 161 P.3d 833 ("[t]enants in common own several and distinct titles to their [common] property"); In re Estate of Lahren, 268 Mont. 284, 286, 886 P.2d 412, 413 (1994) (property interests created in favor of "several persons" create a tenancy in common "[a]bsent an express decla......
  • Drescher v. Malee, DA 21-0619
    • United States
    • Montana United States State Supreme Court of Montana
    • 18 Octubre 2022
    ...338 Mont. 12, 161 P.3d 833 ("[t]enants in common own several and distinct titles to their [common] property"); In re Estate of Lahren, 268 Mont. 284, 286, 886 P.2d 412, 413 (1994) (property interests created in favor of "several persons" create a tenancy in common "[a]bsent an express decla......
  • Scottrade, Inc. v. Davenport, Case No. CV–11–3–BLG–RFC.
    • United States
    • United States District Courts. 9th Circuit. United States District Court (Montana)
    • 5 Junio 2012
    ...law expressly recognizes TOD Plans such as the one executed in this case as valid, nontestamentary transfers. Matter of Estate of Lahren, 268 Mont. 284, 886 P.2d 412, 415–16 (1994), citingMont. Code Ann. § 72–6–111. Upon Jim LeFeber's death on September 15, 2010, SSUF, ¶ 83, ownership of th......
  • Request a trial to view additional results

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