In the Matter of The EState Edward Metz v. Pense

• Citation: 2011 OK 26,256 P.3d 45
• Decision Date: 05 April 2011
• Docket Number: No. 106,807.,106,807.
• Parties: In the Matter of the ESTATE OF William Edward METZ, Deceased.Shirley Glass Romine; Donna S. Hacker, formerly McCoy; Suzanne Suddath; Brad McCoy and Mandi Latimer, Appellees,v.David J. Pense, Appellant.
• Court: Supreme Court of Oklahoma

256 P.3d 45
2011 OK 26

In the Matter of the ESTATE OF William Edward METZ, Deceased.Shirley Glass Romine; Donna S. Hacker, formerly McCoy; Suzanne Suddath; Brad McCoy and Mandi Latimer, Appellees,
v.
David J. Pense, Appellant.

No. 106,807.

Supreme Court of Oklahoma.

April 5, 2011.

[256 P.3d 46]

CERTIORARI TO THE COURT OF CIVIL APPEALS, DIVISION 2¶ 0 Decedent's legatees objected to the final accounting and inventory of the estate with respect to a jointly held bank account naming decedent's nephew as survivor. The District Court, Rogers County, Honorable Sheila A. Condren, held that the decedent did not intend to create a joint tenancy with right of survivorship in nephew, and that the bank account was property of the estate. Nephew appealed and the Court of Civil Appeals affirmed. We reverse and hold that a joint tenancy with right of survivorship was created by the granting clause contained in the share account signature card and properly vested in nephew upon decedent's death.CERTIORARI PREVIOUSLY GRANTED; OPINION OF THE COURT OF CIVIL APPEALS VACATED; DISTRICT COURT'S ORDER REVERSED; CAUSE REMANDED.Larry Ernest Rahmeier, Scarth & Rahmeier, Claremore, for Appellees.Mark H. Ramsey, Taylor, Burrage, Foster, Mallett, Downs & Ramsey, Claremore, for Appellant.COLBERT, V.C.J.

¶ 1 The decedent established a joint bank account naming his nephew as the other joint tenant, with the understanding that his nephew would not exercise dominion or control over the account without the decedent's permission until the decedent's death. The decisive issue on appeal is whether the decedent intended to create a joint tenancy with right of survivorship in nephew.

BACKGROUND AND PROCEDURAL HISTORY

¶ 2 In March 1997, William Metz (Decedent) established a bank account at the Tulsa Teachers Credit Union (TTCU). Decedent named his nephew, David Pense (Appellant),

[256 P.3d 47]

as a joint tenant on the account with right of survivorship. The duly executed share account signature card (Contract) provides:

THE UNDERSIGNED hereby agree with the other, and with the Tulsa Teachers Credit Union; that all sums heretofore deposited by them, or either of them, shall be as joint tenants with right of survivorship, and not as tenants in common, and payable to either during the lifetime of both or to the survivor(s) after the death of one of them; and payment thereof shall discharge said Credit Union from liability to either, or the heirs, personal representatives or assigns of either. The right or authority of the Credit Union under this agreement shall not be changed or terminated by said owners, or any of them except by written notice to said Credit Union which shall affect transactions theretofore, made.

/s/ W.E. Metz

/s/ David J. Pense

The parties agreed verbally that Appellant would not exercise any control over the account until Decedent's death, unless Decedent agreed. For the duration of Decedent's lifetime, Appellant neither contributed nor withdrew money from the account.

¶ 3 Decedent died testate in March 2007. His will bequeathed a specified percentage of his estate to relatives, including Appellant. Other beneficiaries of Decedent's will included Decedent's stepchildren and step-grandchildren, Shirley Glass Romine, Donna S. Hacker, Suzanne Suddath, Brad McCoy and Mandi Latimer, Appellees (Legatees). Legatees objected to the final accounting and inventory of the estate proposed by Decedent's personal representative, alleging that Decedent had intended the money in the TTCU account to revert to his estate at his death. Neither party disputes Decedent's competency. Both parties agree Decedent remained in full control of his affairs until his death. Further, Decedent took no affirmative steps to sever the joint tenancy or change the Contract.

¶ 4 The district court found that Decedent had created a joint tenancy in the TTCU account with Appellant, but that he had intended the money in the account to be used for his medical expenses during his life, and to be property of his Estate after his death. At Legatees' request, the district court imposed a constructive trust on the account, and ordered Appellant to return the proceeds to the Estate for distribution pursuant to Decedent's will. Appellant appealed from the Order Confirming Final Account. The Court of Civil Appeals affirmed, holding that the appellate record supported the district court's decision, but found that the imposition of a resulting trust was more appropriate in this case. Appellant sought certiorari, which was previously granted. Because the record before this Court demonstrates that Decedent intended to create a joint tenancy with right of survivorship in Appellant, we reverse.

STANDARD OF REVIEW

¶ 5 Before determining whether certain property is a probate asset, a district court must determine in whom the title is vested. Okla. Stat. tit. 58, § 1 (2001).¹ Only

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property of a decedent is subject to the probate estate. Id. In reviewing the district court's determination, this Court will examine and weigh the evidence, but will disturb the district court's order only if it is clearly contrary to law or against the clear weight of the evidence. In re Estate of Eversole, 1994 OK 114, ¶ 7, 885 P.2d 657, 661.

ANALYSIS

¶ 6 This Court recognized the common-law doctrine of joint tenancies with right of survivorship prior to its statutory enactment. In re Pugh's Estate, 1955 OK 87, 281 P.2d 937. In 1945, the Oklahoma Legislature crafted a specific provision for estates held in joint tenancy and tenancy by the entirety which provides:

A joint interest is one owned by several persons in either real or personal property in equal shares, being a joint title created by a single instrument, will or transfer when expressly declared in the instrument, will or transfer to be a joint tenancy, or as between husband and wife a tenancy by entirety or joint tenancy as the grantor may elect, or when granting or devising to executors or trustees as joint tenants. A tenancy by entirety can only be created between husband and wife.

Such joint tenancy or tenancy by entirety may be created by transfer to persons as joint tenants or tenants by entirety from an owner or a joint owner to himself and one or more persons, or from tenants in common to themselves, or by coparceners ² in voluntary partition, and such estates may be created by or for persons who have elected to become bound under any community property act now in existence or which may hereafter be enacted. An adjudication of incompetency shall not operate to terminate such an estate.

Where a deed, transfer or conveyance grants an estate in joint tenancy or tenancy by entirety in the granting clause thereof, the granting clause shall control over the habendum clause containing language inconsistent to the granting clause.

In the event of the death of a joint tenant or tenant by entirety, leaving estate subject to probate, a certified copy of letters testamentary or of administration shall constitute prima facie evidence of such death.

The provisions of this act shall apply to all estates in joint tenancy or tenancy by entirety in either real or personal property heretofore or hereafter created.

Nothing herein contained shall prevent execution, levy and sale of the interest of the judgment debtor in such estates and such sale shall constitute a severance.

Okla. Stat. tit. 60, § 74 (2001)(footnote added). While the statute does not expressly employ the term “survivorship,” this Court has historically held that the Legislature intended this well-defined common law term as a characteristic of joint tenancies, because the common law may not be abrogated by

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implication. See Draughon v. Wright, 1948 OK 81, 200 Okla. 198, 191 P.2d 921; Toma v. Toma, 2007 OK 52, ¶ 14, 163 P.3d 540, 545.

¶ 7 In the case of two joint tenants, the concept of joint tenancy with right of survivorship permits each owner to alienate and hold his share at the same time he “and the other or others hold the entire property as by a single ownership.” Shackelton v. Sherrard, 1963 OK 193, ¶ 12, 385 P.2d 898, 901 (quoting 64 A.L.R.2d 918, pp. 921–922 (1959)). The unique characteristics of joint tenancies, created at common law, continue to prevail in modern times—namely the coexistence of the four unities: interest, title, time, and possession. Id. Simply put, a joint tenancy results in only one interest, created by one conveyance, at the same time, and held jointly yet undivided by both tenants. Id.

¶ 8 It is well-settled law that a joint tenancy, in either real or personal property, “creates a present estate which, absent severance during the life of the joint tenants, assures the surviving tenant absolute ownership of the whole subject matter of the joint tenancy.” Toma, 2007 OK 52, ¶ 11, 163 P.3d at 544. Upon a joint tenant's death, the decedent's interest terminates and the surviving tenant's interest simply continues. Clovis v. Clovis, 1969 OK 170, ¶ 16, 460 P.2d 878, 881. By operation of law, the surviving tenant becomes immediately vested with the property as a whole, and the joint tenancy property is excluded from the decedent's estate. Toma, 2007 OK 52, ¶ 11, 163 P.3d at 544. Therefore, there is no property interest remaining that a decedent's beneficiary may inherit. See Draughon, 1948 OK 81, ¶ 9, 200 Okla. 198, 191 P.2d at 923.

¶ 9 Historically, this Court has recognized two categories of joint tenancies with right of survivorship: those created by written instrument expressly declaring the relationship as prescribed by section 74; and those not created with words of joint tenancy or survivorship but, nonetheless, the party initiating the relationship “intentionally and intelligently created essential elements of joint ownership and survivorship.” Raney v. Diehl, 1971 OK 28, ¶ 18, 482 P.2d 585, 590.

¶ 10 Generally, single instruments containing an express written declaration to create a joint tenancy encompass “the element of intent and...