Wiktorowicz v. Haley

• Decision Date: 31 March 1969
• Citation: 251 A.2d 794
• Court: Maine Supreme Court
• Parties: Lucille Stone WIKTOROWICZ, Administratrix of the Estate of Benjamin F. Stone v. Frederick HALEY, Executor of the Estate of Helen M. Stone.

Page 794

251 A.2d 794

Lucille Stone WIKTOROWICZ, Administratrix of the Estate of Benjamin F. Stone v. Frederick HALEY, Executor of the Estate of Helen M. Stone.

Supreme Judicial Court of Maine.

March 31, 1969.

George W. Perkins, and Clinton B. Townsend, Skowhegan, for appellant.

William Clifford, and Robert Clifford, Lewiston, for appellee.

Before WILLIAMSON, C. J., and WEBBER, TAPLEY, DUFRESNE, and WEATHERBEE, JJ.

WILLIAMSON, Chief Justice.

Benjamin F. Stone died in January 1966 leaving a widow Helen, who died in February 1967, and a daughter Lucille by a former marriage. At his death there were in existence five bank accounts amounting to about $24,000 standing in the joint names of Benjamin and Helen.

Under his will, Benjamin bequeathed $2,000 to Lucille, and also provided as follows:

Second: All the rest, residue and remainder of my estate, real, personal and mixed, wherever situated and however and whenever acquired of which I may die seized and possessed or to which I may be at the time of my decease entitled, I give, bequeath and devise to my beloved wife, Helen M. Stone, for and during the term of her natural life, to have and to hold the same to her and her assigns to use as she may see fit for her comfort and enjoyment for and during the term aforesaid, with full power and authority in her and at her own option to mortgage, pledge, sell and convey the same; in the event, however, my said wife shall pre-decease me, or in the event there is any of my estate remaining at the decease of my said wife, after adequate provision for her funeral and burial expenses, I give, bequeath and devise any such remainder to my daughter, said Luville Stone Wiktorowicz.

Helen, the named executrix, deposited the will in the Probate Court, but took no further steps for its probate. Shortly after her husband's death she transferred the accounts to herself. Following her death the will was allowed and Lucille named administratrix c. t. a.

In this jury-waived action the plaintiff, estate of Benjamin F. Stone, seeks to recover from the defendant, estate of Helen M. Stone, the joint accounts, less certain payments therefrom. The decisive issue raised by the plaintiff on appeal is whether the burden of proof to establish ownership of the joint accounts rests on the estate of Benjamin or the estate of Helen. For reasons herein stated, we are of the view that the Court below erred in placing the burden of proof under the circumstances on the plaintiff.

First: The ultimate decision must be based on what constituted the life estate fund at Benjamin's death, and (2) on what charges were properly made against the fund by Helen and for her funeral and burial expenses. The remainder, with suitable accounting for income on the fund, belongs to the estate of Benjamin for the ultimate advantage of Lucille. It is not necessary for us to determine whether Lucille was the proper party to seek recovery of the remainder. Any recovery by the plaintiff would under Benjamin's will go to Lucille, in any event. Compare Hardy v. Mayhew, 158 Cal. 95, 110 P. 113.

Second: Helen during her marriage with Benjamin had substantial earnings from employment in the shoe industry. The Court below found that Helen was entitled to such earnings as her own under the 'wife's earnings' statute, ¹ and that any contributions made by her to the joint accounts belonged to her and not to her husband. No objection was raised to this finding. We need not consider further the source of Helen's contributions.

Third: At Benjamin's death it became necessary to determine the interests of Benjamin's estate and of Helen in the joint accounts. The funds of each were mingled in the deposits and therefore an accounting was required.

Helen as named executrix acted as a fiduciary with reference to Benjamin's estate, and for our purposes, in particular with reference to Lucille. Crockett Appellant, 130 Me. 135, 154 A. 180; Tapley v. Douglass, 113 Me. 392, 94 A. 486. In acting as executrix, Helen had no less responsibility than had she been authorized under a will duly probated. Indeed, '(a)dditionally to the moral obligation imposed either by express or implied direction of the maker, a statute charges upon every supposed executor having custody of an unprobated will the imperative legal duty of filing it for probate', Nichols v. Leavitt's Estate, 118 Me. 464, 109 A. 6. The statute presently is 18 M.R.S.A. Sec. 9. See also Smith v. Moore, 6 Me. 274.

Thus at her husband's death Helen had possession of the mingled funds belonging to her husband's estate and to herself. In our view, it was her duty to separate the funds of each and to account to the estate for its share. ² In so acting the burden of establishing her personal interest in the mingled funds was upon her in light of her obligation as a fiduciary. Hence the burden of proof to unscramble the eggs at Benjamin's death now falls on Helen's estate. Petersen v. Swan, 239 Minn. 98, 57 N.W.2d 842.

Fourth: Helen, as we have seen, transferred the mingled funds to herself. As executrix or personally, and in either event to the advantage of Benjamin's estate, she paid the following:

                Allowance to herself as surviving
                 widow from the joint accounts
                 under 9 M.R.S.A. Sec
                 515                               $5,000
                Legacy to Lucille                   2,000
                Benjamin's funeral expenses         1,195
                                                   ------
                                                   $8,195
                

The items totaling $8,195 were all properly chargeable against Benjamin's estate before the residue could be ascertained. The funeral and burial expenses of Helen amounting to $1055, plus disbursements by Helen for her 'comfort and enjoyment' would come from the remainder received by Helen for life under the second clause of the will.

Fifth: Helen, however, did more than act as an executrix although not authorized. She acted as well as the life beneficiary of the residue of Benjamin's estate. In this latter capacity Helen was a trustee or quasi trustee for the remainder interests, and in particular for Lucille. Mallett v. Hall, 129 Me. 148, 153, 150 A. 531; Nelson v. Meade, 129 Me. 61, 65, 149 A. 626.

It was her duty to protect and preserve the funds of the life estate and to expend them only for purposes designated by the testator, that is, for her 'comfort and enjoyment'.

Our Court said in Pierce v. Stidworthy, 79 Me. 234, 241, 9 A. 617, 619:

'The will, giving the widow the use and income of the fund during her life, with the right to apply to her use, if needed, any part of the principal, making her the sole judge of the need of so doing, we are of opinion that she is entitled to the possession and management of it; but, as she will be charged with the trust of managing and preserving it for the heirs, who are to take what may be left at her death, as well as for herself, we think it but reasonable, under the peculiar circumstances of this case, that, before it is paid over to her, she be required to give a bond to the judge of probate, in the sum of $5,000, with sureties to be approved by him, conditioned for the faithful management and preservation of the fund according to the terms of the will.'

In Fuller v. Fuller, 84 Me. 475, 481, 24 A. 946, 948, with reference to a life estate with power of disposal, the Court said:

'But where the property consists of money, which may be easily lost or wasted, the general rule is that a legatee must give some...