Manahan's Estate, In re

• Decision Date: 10 December 1963
• Docket Number: No. 51080,51080
• Parties: In the Matter of the ESTATE of Charles A. MANAHAN, Deceased.
• Court: Iowa Supreme Court

Page 135

125 N.W.2d 135

255 Iowa 1060

In the Matter of the ESTATE of Charles A. MANAHAN, Deceased.

No. 51080.

Supreme Court of Iowa.

Dec. 10, 1963.

Mossman & Mossman, Vinton, for appellants.

Fitzgibbons & Fitzgibbons, Estherville, for appellee.

MOORE, Justice.

Doctor Charles A. Manahan died February 25, 1959 leaving a last will dated June 30, 1953. By its terms he left all his property in trust with the income therefrom going to his second wife, Lois Manahan, and his two daughters, Alberta Mae Long and Dorothy Marie Elson, during their lifetime, subject to the provisions for payment of educational expenses. The remainder was left to the children of his two daughters. Lois and the daughters were named co-executrices. The preliminary inheritance tax report estimated the value of the entire estate at $249,538.46.

Lois elected not to take under the will. Thereafter she entered into a courtapproved agreement with the other two coexecutrices settling her distributive share of the real estate acquired by decedent subsequent to their marriage for $50,000. She then resigned as a co-executrix.

Paragraph 5 of the will provides:

'5. It is my wish that my grandchildren, including the children of Ernest Hanover, shall receive whatever education they desire. I wish to encourage the grandchildren to do graduate work if they are so inclined and this graduate work does not have to be continuous. Therefore, if any of my grandchildren, including the children of Ernest Hanover, are not able to go to college or graduate school without having to work for their board or room, or tuition or books, and if such child or person shall request financial assistance from the coexecutrixes of my estate, such assistance as is necessary shall be given from the income of my estate, prior to the distribution of the income to the life tenants, providing two of the three co-executrixes, or one of the survivors of the co-executrixes, believe that without such assistance such child or person would have to work while in school. As the grandchildren reach suitable age, they are to be informed of these facts. This paragraph is to be applicable only while at least one of the three life tenants is living.'

July 11, 1961 Lois Manahan's grandson, Jeffery Ernest Hanover, 19, by Ernest Hanover, his father and next friend, filed in the Manahan estate an application for educational expenses of $2100 for the college year 1961-62. The two remaining executrices without inquiry denied his application and filed resistance thereto, alleging lack of knowledge and asked the court to deny and dismiss the application.

The issues raised by the application and resistance were submitted to the trial court as a probate proceeding commencing June 11, 1962. After listening to the testimony of several witnesses and a study of the exhibits introduced, the court found claimant is a child of Ernest Hanover mentioned in paragraph 5 of the will and entitled to the benefits therein provided. The court found claimant was a student in New Mexico State University, was unable to go to college without having to work for his board, room, tuition and books, the reasonable and necessary assistance for the college year 1961-62 was over $2100, the estate income was sufficient to pay the claim and the discretion given the co-executrices by paragraph 5 was not an arbitrary but only a sound discretion to be exercised in the light of the facts and actual circumstances.

From the court's order allowing claimant $2100 as educational expenses for the college year 1961-62 the co-executrices have appealed.

They assert the court erred in finding abuse of discretion, the applicant qualified for assistance in the amount allowed, and there was sufficient income to pay educational expenses. They also argue that oral applications of other beneficiaries named in paragraph 5 have been denied and the allowance gives the applicant here a preference over other claims and debts of the estate.

Appellants seem to argue this claim is here triable do novo. That of course is not correct. In re Estate of Wulf, 242 Iowa 1012, 1016, 48 N.W.2d 890, 892, 33 A.L.R.2d 698, states: 'The proceeding was in probate, was tried as an ordinary action, and the findings of the trial court are conclusive in so far as supported by substantial evidence. (Citations) * * * And our rule in Iowa is that all proceedings in probate are triable as ordinary actions unless there is some special statutory provision to the contrary.' See sections 611.3, 611.4, 611.5 and 635.59, Iowa Code, I.C.A Citation of other authority is unnecessary. Rule 344(f), subd. 1, 58 I.C.A.

The trial court having heard this application following the completion of applicant's college year 1961-62 at New Mexico State University had the benefit of testimony and exhibits showing applicant's school record, his actual expenses, the source of founds expended and his work record. He chose this school because his doctor advised him to go to a drier climate. He has rheumatism and a sinus condition which causes severe headaches.

Between twelve and thirteen hundred students enrolled in the freshman class in the fall of 1961. By the end of the school year only eight hundred remained. The reduction was due to drop-outs and failures. Applicant was one of the survivors. His major was chemistry. His first semester average was 2.2. His second semester average was 2.5 (2 is a C).

His expenses for that college year were:

                Tuition                                                               572.00
                Room                                                                  240.00
                Board (including meals, during holidays when he was on campus         529.00
                Books                                                                 100.00
                Clothing                                                              150.00
                Laundry, toothpaste, other personal effects and entertainment         360.00
                Transportation expense to and from New Mexico not including meals     126.00
                Slide rule, paper, pencils and other supplies                          25.00
                Health insurance                                                        8.25
                                                                                   ---------
                                                                                   $2,110.25
                

Applicant worked from January 1 to September 1, 1961. He earned $600 which was spent for clothing and other items before starting to college. To pay expenses applicant cashed an $1100 life insurance policy his father had paid up for him, used his $77 income tax refund, borrowed $800 from the bank at Armstrong, Iowa, his home town, and was given some financial help by his parents. During the summer of 1962 he was working to pay part of the note to the bank. He estimated his earnings during the summer would enable him to pay $450 on that obligation. During his college year applicant attempted to obtain work but was unable to do so. The loan from the bank resulted.

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