State Bd. of Social Welfare v. Teeters

• Decision Date: 05 April 1966
• Docket Number: No. 52019,52019
• Citation: 258 Iowa 1113,141 N.W.2d 581
• Parties: STATE BOARD OF SOCIAL WELFARE of the State of Iowa, Appellant, v. Ruth TEETERS, James H. Teeters, Naomi I. Westphal, James H. Teeters, Executor of the Estate of John L. Teeters, deceased, and Naomi I. Westphal, Executor of the Estate of John L. Teeters, deceased, Appellees.
• Court: Iowa Supreme Court

Page 581

141 N.W.2d 581

258 Iowa 1113

STATE BOARD OF SOCIAL WELFARE of the State of Iowa, Appellant, v. Ruth TEETERS, James H. Teeters, Naomi I. Westphal, James H. Teeters, Executor of the Estate of John L. Teeters, deceased, and Naomi I. Westphal, Executor of the Estate of John L. Teeters, deceased, Appellees.

No. 52019.

Supreme Court of Iowa.

April 5, 1966.

Pattie, Hinshaw & King, Marshalltown, for appellant.

Mote, Wilson & Welp, Marshalltown, for appellees.

MOORE, Justice.

Plaintiff, state board of social welfare, in this declaratory judgment action seeks to establish a lien on realty now held by defendants for the amount it paid their brother, Grant Teeters, now deceased, as old age assistance. The trial court dismissed plaintiff's petition for want of proof sufficient to sustain the prayer thereof. Plaintiff has appealed and will be referred to as the board.

The evidence consists of a stipulation of facts and several documents admitted without objections. The facts are therefore without dispute. Our review is de novo as this action was tried in equity. Rule 334, Rules of Civil Procedure.

Being in equity with undisputed facts we give no weight to the findings of the trial court as credibility of witnesses is not a factor. Final determination of this case is for this court. After a careful examination of the record and documents we draw our own inferences and conclusions. Cassady v. DeJarnette, 251 Iowa 391, 393, 101 N.W.2d 21, 23; Ames Tr. and Svgs. Bank v. Reichardt, 254 Iowa 1272, 1280, 121 N.W.2d 200, 204.

Plaintiff by virtue of the provisions of Chapter 249, Code of Iowa, approved the application of Grant Teeters dated October 29, 1957 for old age assistance and thereafter paid him $65.50 each month until his death May 29, 1963, a total of $4913.70.

John L. Teeters, father of Grant and defendants herein died February 4, 1957. His will executed March 6, 1953 was admitted to probate January 24, 1958. The estate remained open and no distribution of personal property had been made at time of trial. After payment of debts and administration costs the remaining assets consist of several lots of real estate in State Center which the will describes and designates as his 'home property', and three United States Savings Bonds having a cash value of $3180. The inventory fixes the value of the home property at $10,000. John L. Teeters owned no other real property at the time of his death.

The pertinent parts of John L. Teeters' will are: '2. I give, devise and bequeath to my beloved daughter, Ruth Teeters, for her use for her lifetime, my home property described as follows: (describing all of the real estate reported in the inventory.)

'3. I give, devise and bequeath all the rest, residue and remainder of my property of whatever kind and wherever located, to my beloved son, Grant Teeters, for his use for his lifetime, and subject always to a life estate of Ruth Teeters in the home property as set out in paragraph two hereof, I do give to him, my son, Grant Teeters, the right, power and authority, at such time or times and in such manner as pleases him, to sell, assign, transfer, convey, lease, exchange, invest and re-invest, rent, mortgage or pledge said property or any part thereof and contract with reference thereto and to convert to his own use and take as his own property any part thereof that he considers necessary for the maintenance, support or comfort of his sister, Ruth, or himself and if he and his sister, Ruth, shall be living at the time, she and he, acting jointly, shall have the right, power and authority to sell and convey my home property described in paragraph two hereof, absolutely and in fee simple.

'4. If at the death of my son, Grant Teeters, there remain any part of my property in the original or a changed form, all such property so remaining, I give, devise and bequeath to my son, James H. Teeters, and my daughter, Naomi I. Westphal, if both be then living and all to the survivor if either be then deceased. On receiving any such property, without binding them or making it obligatory, I ask that they or the survivor, at once make all necessary arrangements to assure that their sister, Ruth, if living, will have all proper maintenance, support and comfort, for her lifetime.'

Naomi I. Westphal and James H. Teeters as executors of the Estate of James L. Teeters and residuary beneficiaries after Grant's death and the first life tenant, Ruth Teeters, are defendants and resist plaintiff's attempt to establish a lien against the home property.

Subsequent to their father's death, Ruth and Grant occupied and used the home property as their residence. Ruth continues to so occupy it. She has paid all real estate taxes, insurance, maintenance and cost of utilities since her father's death. Until his death Grant paid her for room and board amounts varying from $45 to $55 per month from funds received by him from the board.

The application for old age assistance in brief stated that Grant Teeters does 'hereby apply for Old Age Assistance. Date of birth 1--23--91. Value of property: real--none. personal--none. Monthly income--none. I will assist in securing data relative to my eligibility for assistance * * * and I will give any officially appointed representative of the county or state department of Social Welfare information necessary to make a complete investigation. I hereby swear or affirm that the above statements are true to the best of my knowledge. (Signed) Grant Teeters.' At the bottom of the same page there appears the following: 'The eligibility requirements for the aid requested and his right to an appeal and fair hearing have been fully explained to the above applicant. Said application was sworn to before the undersigned: By (Signed) Helen Smith, (Title) PAW II, Dated 10--29--57.'

With reference to assistance given Grant Teeters the board on November 22, 1957 filed with the Marshall County recorder the following notice of lien:

'TO WHOM IT MAY CONCERN: This is to certify that the application for assistance of the above named person as provided for by Chapter 249, Code of Iowa, 1950, as amended, has been approved. The assistance furnished under this order, together with prior and subsequent orders of the State Department of Social Welfare, is made a lien by law on any real estate owned either by the person above named and to whom assistance has been granted. This order shall be subject to review at any time by the Department and the amount awarded may be increased, decreased or discontinued.

'You are hereby notified that all assistance furnished the above named person and spouse is made a lien by law on any real estate owned by either of them and the exact amount of assistance paid may be determined by communicating with the State Department of Social Welfare at Des Moines, Iowa.' Signed by the Director of the Division of Accounts and Audits from the State Department of Social Welfare.

On the same page with said notice of lien there appears a certificate and order for assistance as follows: 'The request of the above named person for Old Age Assistance is hereby approved.

'It is therefore ordered that such assistance is hereby fixed and ordered paid in the sum of $65.50 per month in accordance with county recommendation; assistance to begin November 1, 1957 and continue until further order of the Department.' Signed by said Director.

No estate has been opened for Grant Teeters. He died seized of no real estate in fee simple title. Apparently he possessed no personal property subject to probate proceedings. The only interest Grant had in the real estate involved here (the home property) was derived under the terms of his father's will. Defendants have not executed to plaintiff or Grant any instrument affecting...