Mcknight v. Way

• Decision Date: 06 August 2010
• Docket Number: 2090508.
• Citation: 58 So.3d 810
• Parties: Helen McKNIGHT, as conservator of the estates of William Walker Way and Alexander Spiller Way and as executor of the estate of Linda McKnightv.Jack WAY et al.
• Court: Alabama Court of Civil Appeals

58 So.3d 810

Helen McKNIGHT, as conservator of the estates of William Walker Way and Alexander Spiller Way and as executor of the estate of Linda McKnight

v.Jack WAY et al.

2090508.

Court of Civil Appeals of Alabama.

June 25, 2010.Rehearing Denied Aug. 6, 2010.Certiorari Denied Sept. 10, 2010

Alabama Supreme Court 1091585. J. Paul Whitehurst, Northport, for appellant.John T. Fisher, Jr., and Jaime Webb Conger of The Fisher Law Firm, P.C., Tuscaloosa, for appellee Tuscaloosa Memorial Chapel, Inc.; and Randolph M. Fowler of Phelps, Jenkins, Gibson & Fowler, LLP, Tuscaloosa, for appellee The Peoples Bank & Trust Co.BRYAN, Judge.

Linda McKnight (“Linda”), a resident of Pickens County, died testate on May 11, 2006. Item Two of Linda's will left all of her property to her three children, Drew Smithart (“Drew”), William Walker Way (“William”), and Alexander Spiller Way (“Alex”):

“ITEM TWO

“I give, devise, and bequeath all of my property, real, personal or mixed, of every kind and description, wherever located, to my children, Drew Smithart, William Way and Alex Way. The property (including real estate and all furnishings and contents) designated as 13593 Riverbend Road, Moundville, AL 35474, located in Tuscaloosa County shall be owned by my sons as joint tenants with right of survivorship. Drew Smithart is to have all jewelry and furniture that was given to me by him or his father. This includes a diamond engagement ring in unusual setting, a diamond cross necklace, a yellow gold diamond teardrop necklace and plain diamond earrings to match, a solid pearl necklace, matching earrings with gold jackets, one pearl and one jade enhancer, a solid gold large ring, and diamond loop earrings. He also gets my fur coat and his truck. William and Alex shall share the rest of my jewelry, furniture and personal effects, equally. I LOVE YOU ALL. YOU HAVE BEEN THE LIGHTS, JOYS AND LOVES OF MY LIFE. I WILL SEE YOU IN HEAVEN. I hope I have provided for your needs and ask you to spend your money and use your hearts wisely. My sons are already given the manufactured house owned by myself and located at 994 Clear Creek Road, Gordo, AL, 35466 as tenants in common. They may move it or live in it where it stands or sell it.”

(Capitalization in original.)

Item Five of Linda's will prohibited her former husbands, Bill Smithart and Jack Way (“Jack”), from having possession or control of any property belonging to Drew, William, or Alex that they had acquired through Linda, her sister, or her parents:

“ITEM FIVE

“I name as guardian of the person and as conservator and/or trustee of the estate of each child of mine Helen McKnight, my mother, and Drew Smithart, my son, presently of Pickens County, Alabama, or if he/she for any reason fails or ceases to act as such guardian or conservator, then the other shall act alone. No bond or other security shall be required of a conservator, guardian or trustee acting under this Will or on behalf of any life insurance or IRA beneficiaries. It is my intention by the appointment of a guardian of the person that such guardian shall have custody of the person of the minor children. It is my desire that my named guardians and custodians immediately get a custody order for all my children upon my death. Upon each child reaching 18, it is my desire that each such child shall be relieved of any disabilities of non-age and shall be emancipated, guardian of their own person, and conservator of their own money.

“Anybody who contests this will shall receive nothing. Neither [Bill Smithart] nor Jack [Way] is to ever have possession or control of any items or funds from life insurance, IRAs, this will or other method of acquisition belonging to my children and acquired by, through or under myself, my sister, or my parents. This is based not on spite, for I loved them both; but upon their proven criminal track records with money (even if one of them remains unconvicted). I wish I could say it more delicately, but I cannot. They are not to touch one penny of Drew's, William's or Alex's assets.”

(Emphasis added.)

The Probate Court of Pickens County admitted Linda's will to probate and issued letters testamentary to Helen McKnight (“Helen”), Linda's mother. The probate court also appointed Helen conservator of the estates of William and Alex.

William, who was Jack's son, died on September 24, 2006, at the age of 15. The Probate Court of Tuscaloosa County opened a decedent's estate for William and issued letters of administration to Tuscaloosa Memorial Chapel, Inc. (“the Chapel”), William's largest creditor. Although the record before us is not complete, Jack apparently asserted that Helen, as William's conservator, was obligated to transfer the property in William's conservatorship estate to Jack on the ground that it had vested in Jack by virtue of the statute governing intestate succession. Although her petition is not in the record before us, Helen apparently petitioned the Probate Court of Pickens County to determine that the property in William's conservatorship estate should be transferred to Linda's estate so that it could be divided between Drew and Alex. Following a hearing, the Probate Court of Pickens County entered a judgment determining that Jack was entitled to the property in William's conservatorship estate by virtue of the law of intestate succession. That judgment stated:

“This cause was before the court for hearing on the conservator's Petition to Determine Distribution of the Estate. Helen McKnight is the conservator of the subject estate and the maternal grandmother of William Walker Way.

“Present in the courtroom were the conservator and her attorney the Hon. J. Paul Whitehurst, and the Hon. Thomas R. Jones, Jr., the attorney representing Jack Way who is the father and sole heir at law of William Walker Way. William Walker Way was 15 at the time of his death and therefore lacked legal capacity to make a will. The conservator's petition at paragraph 3, page 1, acknowledges that Jack Way is William's only heir at law pursuant to Alabama's law of intestate succession. Code of Alabama 1975, § 43–8–42.

“The attorneys made opening and closing arguments to the court. Ms. McKnight testified on direct examination of her attorney and cross-examination of Mr. Jones. No other witnesses were called by either side.

“The assets comprising the subject conservatorship estate devolved substantially from the estate of Linda McKnight, the mother of William Walker Way who preceded her son in death. The conservatorship was established to receive and conserve the assets obtaining to William Walker Way from his mother's estate, his separate estate and proceeds of a life insurance policy. Linda McKnight and Jack Way were divorced several years prior to Linda's death. It is clear in Linda's will that she did not want Jack Way to benefit from her estate, either directly or indirectly. However, provision is not made in the will for disposition of the assets received from her estate by William Walker Way upon his death.

“The conservator is now asking the court to construe Linda McKnight's will to read that her intent, as expressed in the will, was to restrict the transferred property to the children so that Jack Way could not benefit from the transfer upon the death of one of his children. In other words, the court should now order a renunciation of the property received from Linda's estate by the conservatorship thereby returning the property to Linda's estate so that her two surviving sons would then share equally in William's share. The court, however, must apply the law of Alabama's intestate succession statute because the assets obtaining to William Walker Way from his mother's estate vested in him by operation of law at the moment of Linda's death. Code of Alabama 1975, § 43–8–42.

“The section of the statute applicable to the instant issue is found at § 43–8–42(2) which directs that in the event of no surviving issue, the intestate's estate shall devolve in toto to the surviving parent or parents. Such is the case here. William Walker Way had no surviving spouse or issue at the time of his death and was survived by his father, Jack Way. The conservatorship estate is within the jurisdiction of this court and shall be distributed under this ORDER as below directed.

“IT IS THEREFORE THE ORDER OF THE COURT that:

“1. The conservator of the William Walker Way conservatorship case number 6735 now pending in the Probate Court for Pickens County, Alabama, shall within 30 days from the date hereof petition the court for a final settlement of the subject conservatorship estate and upon a hearing shall submit her final account for all receipts and disbursements.

“2. Upon the court's entry of order approving the conservator's account and final settlement of the conservatorship, the assets thereof shall be transferred from this court to the Tuscaloosa County Probate Court for administration and distribution under the estate case of William Walker Way now pending before that court.”

(Capitalization in original.) Helen, in her capacities as William's and Alex's conservator and as Linda's executor, then appealed from that judgment to the Pickens Circuit Court (“the circuit court”).

The Chapel appeared in Helen's appeal in the circuit court and moved the circuit court to compel Helen to file a final settlement of William's conservatorship estate and, upon approval of that final settlement, to order Helen to transfer William's property to the decedent's estate established for William by the Probate Court of Tuscaloosa County. The Peoples Bank & Trust Company (“the Bank”), a judgment creditor of Jack's, filed a motion seeking leave to intervene in Helen's appeal and requesting that the circuit court compel Helen to file a bond as required by an earlier order of the Probate Court of Pickens County. The record before us does not indicate whether the circuit court ruled on that motion.

Following a hearing, the circuit...