2003 WY 119, 76 P.3d 1236, IN THE MATTER OF THE ESTATE OF SEADER
Case Date: 09/23/2003
Docket No: 02-224
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IN THE MATTER OF THE ESTATE OF SEADER Cite as: 2003 WY 119, 76 P.3d 1236 APRIL TERM, A.D. 2003
IN THE MATTER OF THE ESTATE OF NEIL A. SEADER:
KIM SANDERSON and KIRK OLIVE,
Appellants(Respondents),
v.
RONALD BATHRICK, duly appointed and acting Personal Representative of the Estate of Neil Adam Seader, NEIL J. SEADER and CHARLES LEE SEADER,
Appellees(Petitioners).
Appeal from the District Court of Laramie CountyThe Honorable Edward L. Grant, Judge
Representing Appellants:
Megan L. Hayes and Stephen J. Jouard of Dwyer, Huddleson and Ray, P.C., Fort Collins, Colorado.
Representing Appellees:
Lance T. Harmon of Bailey, Stock & Harmon, P.C., Cheyenne, Wyoming; and Matthew H. Romsa of Romsa Law Office, P.C., Cheyenne, Wyoming.
Before HILL, C.J., and GOLDEN, LEHMAN, KITE, and VOIGT, JJ.
VOIGT, Justice, delivered the opinion of the Court; GOLDEN, Justice, filed a dissenting opinion with which HILL , Chief Justice, joined.
VOIGT, Justice.
[1] The district court refused to apply the doctrines of equitable adoption, adoption by estoppel, and virtual adoption to avoid the operation of the anti-lapse statute. The district court also concluded that the testators will did not evidence an intention that the share of a predeceased devisee pass to that devisees children. The devisees children appealed. We affirm.
ISSUES
1. Whether the doctrines of equitable adoption, adoption by estoppel, and virtual adoption are available under Wyoming law to allow the descendents of a predeceased stepchild to be considered lineal descendents of their step-grandfather under the anti-lapse statute?
2. Whether the district court erred in concluding that the testators will did not evidence an intention that the share of a predeceased devisee pass to that devisees children?
FACTS
GOLDEN, J., dissenting, with whom HILL, C.J., joins.
[40] Because I believe there is room for equity under the unique facts of this case, I dissent. With regards to the first issue, the application of the principles of equity to these facts, I disagree with the reasoning of the majority opinion. The Wyoming Probate Code specifically provides that principles of equity should be applied to supplement Code provisions to the extent the equitable principles do not directly contradict express probate provisions. Wyo. Stat. Ann. 2-1-102(b) (LexisNexis 2003). The majority opinion finds such an express contradiction where I believe none exists. The majority opinion relies heavily on a dissent in a North Carolina intestate succession case to support its reasoning, Lankford v. Wright, 489 S.E.2d 604, 607 (N.C. 1997). In Lankford, the North Carolina Supreme Court recognized and applied the doctrine of equitable adoption under a more standard set of facts, ultimately allowing a woman to inherit from the intestate estate of a woman who had held her out as her child. Id. at 606-07.
[41] The dissent in the North Carolina case was based upon a statute that is substantially different from Wyomings statutes. The North Carolina statute, included in the provisions governing intestate succession, provided that a person adopted in accordance with the adoption statutes is entitled by succession to any property by, through and from his adoptive parents.17 The dissent argued that the statute evinced a legislative policy decision that only those children legally adopted could inherit. Id. at 608. Continuing this line of reasoning, the dissent interpreted the statute as a legislative mandate precluding the application of equitable adoption by courts for purposes of intestate succession.
[42] The majority in Lankford refused to accept the reasoning of the dissent, stating:
[W]e again note that an overwhelming majority of states that have addressed the question have recognized and applied the doctrine [of equitable adoption]. More importantly, it is the unique role of the courts to fashion equitable remedies to protect and promote the principles of equity such as those at issue in this case. We are convinced that acting in an equitable manner in this case does not interfere with the legislative scheme for adoption, contrary to the assertions of the dissent. Recognition of the doctrine of equitable adoption does not create a legal adoption, and therefore does not impair the statutory procedures for adoption.
Lankford, 489 S.E.2d at 607. I believe that the majority in Lankford has the better argument, especially concerning the role of equity and the courts. Equity is always available, and indeed is intended, to fill gaps in compliment with the law, whether common law or statutory law.
Equity follows the law except in those matters which entitle the party to equitable relief, although the strict rule of law be to the contrary. It is at this point that their paths diverge. As the archer bends his bow that he may send the arrow straight to the mark, so equity bends the letter of the law to accomplish the object of its enactment.
Holloway v. Jones, 246 S.W. 587, 591 (Mo. 1922). A reading of the Wyoming Probate Code as a whole reveals that the legislature intends and expects Wyoming courts to apply equity when necessary to discover and make effective the intent of a decedent in distribution of his property. 2-1-102(a)(ii).
[43] Thus, equity may be applied when necessary unless prohibited by an express probate provision. The majority opinion finds such an express prohibition in the anti-lapse statute. To save a bequest from lapsing, the anti-lapse statute requires the deceased devisee be a lineal descendant. The majority opinion claims that the term lineal descendant is unambiguous and this Court cannot apply equity to broaden the class of persons identified by the statute. Lineal descendant means no more, or less, than in a direct line, e.g. a child or grandchild. The definition of child remains to be supplied. In In re Cadwells Estate, this Court quoted with approval a definition of lineal descendant that included an adopted child. 26 Wyo. 412, 419-20, 186 P. 499, 501 (Wyo. 1920). Child is defined by Wyo. Stat. Ann. 2-1-301(v) (LexisNexis 2003) as including an adopted child. No definition expressly states, or even implies, that the definition of adopted child is limited to a legally adopted child, to the exclusion of an equitably adopted child. As such, I see no direct conflict in reading equitably adopted child into the definition of lineal descendant.
[44] Which brings me back to the initial enquiry should equity be applied to these facts? I would approach the question in a slightly different manner. Certainly this case does not present the standard set of facts for the application of equitable adoption. Because Neil died testate, equitable adoption in the traditional sense does not apply. The Wyoming Probate Code clearly directs that [t]he intention of a testator as expressed in his will controls the legal effect of his dispositions. Wyo. Stat. Ann. 2-6-105 (LexisNexis 2003). Thus, the critical inquiry is Neils intentions as expressed in his will.
[45] In determining the intent of a testator, it is important to note that the Wyoming Probate Code is set up as an opt out code. In other words, the provisions of the probate code apply unless the testator evinces a contrary intention in the will. Thus, the anti-lapse statute automatically applies unless the testator indicates otherwise in his will. In this case, Neils will provides no indication that he did not want the anti-lapse statute to apply. Thus, Neils intent is for the anti-lapse statute to apply. There is no question that if one or both of the biological sons had predeceased their father, their heirs would have taken in place of the deceased devisee.
[46] It is critical to note that the anti-lapse statute is not a statute of devise, but rather only limits the conditions upon which an inheritance will lapse. The inheritance does not lapse if it is made to a lineal descendent. If made to a lineal descendant, the issue of the deceased devisee take in place of the deceased devisee. Wyo. Stat. Ann. 2-6-106 (LexisNexis 2003). Thus, Kim and Kirk are not attempting to inherit in their own name or in their own right; they will only take in the place of Julie. It is still Julies inheritance that is at stake.
[47] Neils will clearly indicated that he did want Julie to receive an inheritance from him. The question is: did he want her to receive the inheritance as his daughter or as a non-relative? The majority opinion decides the issue against Julie based upon the lack of any express language in the will referring to Julie as his daughter. I believe this oversimplifies the process. Neil never clarified anyones status in his will. I believe this lack of clarification renders the terms of the will ambiguous.
[48] [T]the construction of the will is to be resolved by determining the intent of deceased as such appears from a full and complete consideration of the entire will when read in the light of the surrounding circumstances. Douglas v. Newell, 719 P.2d 971, 973 (Wyo. 1986). The circumstances in this case indicate that Neil consistently treated and referred to Julie as his daughter. Julie was his wifes daughter. When Julies mother died, she left her entire estate to Neil, leaving nothing to Julie. Then Neil executed his will, treating all three children equally in at least two provisions of the will, including the residuary clause. I believe the family context creates a strong implication that Neil considered Julie his daughter, thus creating an ambiguity in his will requiring extrinsic evidence to resolve his true intent.
[49] The complication in this case is that, even if Neil intended Julie to take as his daughter, Julie was never legally adopted by Neil. Julie is legally not a lineal descendant of Neil. I do not believe, however, that the inquiry is automatically at an end with the determination of Julies legal status. This case is presented to this Court as a plea to recognize Julie as adopted in equity. If Julie is recognized as adopted in equity, for purposes of inheritance only, Julie would be a lineal descendant, her share would not lapse, and her children would take her share as her representatives. This, I believe, is where there is room for the application of equity to affect Neils testamentary intent.
[50] This case was decided on summary judgment. I would reverse and remand this case for further proceedings to determine Neils testamentary intent. Starting with his will, we know Neil wanted Julie to inherit from him, but we do not know from the will what status Neil accorded Julie. I believe the first issue to determine is if there is clear and convincing evidence to support equitable adoption. If there is not, the inquiry is at an end because Neil could not have considered Julie an adopted daughter. Julies share would thus lapse.
[51] If there is clear and convincing evidence supporting equitable adoption, then the question returns to Neils testamentary intent. Did Neil intend for Julie to take only if she survived him, or did Neil take for granted that Julie was his daughter and her inheritance would not lapse? If it can be proven that Neil did want Julie to take as his daughter, then I believe it would be appropriate to apply the principle of equitable adoption, thus preventing Julies share from lapsing. This would then allow for Neils testamentary intent to be fulfilled. Applying principles of law and equity is exactly what this court is expected to do to discover and make effective the intent of a decedent in distribution of his property. 2-1-102(a)(ii).
[52] However, I note that many jurisdictions accept that adoption by estoppel precludes not just the foster parents but also their heirs from challenging the status of a child as equitably adopted. See e.g. Shaw v. Scott, 252 N.W. 237 (Iowa 1934) (collecting cases); Fiske v. Lawton, 144 N.W. 455 (Minn. 1913). In both Shaw and Fiske, the foster child predeceased the foster parents and the foster parents then died intestate. The respective courts, after finding clear and convincing evidence of an agreement to adopt, estopped the heirs of the foster parents from challenging the status of the foster child as equitably adopted, thus clearing the way for the foster childs children to inherit their parents share.
FOOTNOTES
1Julie is sometimes spelled Julia in the court file.
2None of the relevant motions, petitions, and legal memoranda in the record are verified or accompanied by sworn affidavits, perhaps because there does not appear to be any controversy as to the basic facts. The facts stated herein are taken from the various pleadings and are set forth in the light most favorable to the appellants.
3Wyo. Stat. Ann. 2-6-106 states:
If a devisee who is a grandparent or a lineal descendent of a grandparent of the testator is dead at the time of execution of the will, fails to survive the testator, or is treated as if he predeceased the testator, the issue of the deceased devisee take in place of the deceased devisee and if they are all of the same degree of kinship to the devisee they take equally, but if of unequal degree then those of more remote degree take per stirpes. One who would have been a devisee under a class gift if he had survived the testator is treated as a devisee for purposes of this section whether his death occurred before or after the execution of the will.
Wyo. Stat. Ann. 2-6-107(b) states:
Except as provided in W.S. 2-6-106, if the residue is devised to two (2) or more persons and the share of one (1) of the residuary devisees fails for any reason, his share passes to the residuary devisee, or to other residuary devisees in proportion to their interests in the residue.
4In general, a devise or legacy left to a beneficiary in his individual capacity, and not jointly with others, will lapse upon his death prior to that of the testator, unless the testator has expressed a contrary intention, or unless a controlling statute otherwise dictates. Matter of Strobles Estate, 6 Kan.App.2d 955, 636 P.2d 236, 239 (1981). See also 80 Am.Jur.2d, Wills, 1423-1430 (2002).
5Wyo. Stat. Ann. 1-22-114(b) (LexisNexis 2003) states: Adopted persons may assume the surname of the adoptive parent. They are entitled to the same rights of person and property as children and heirs at law of the persons who adopted them. Wyo. Stat. Ann. 2-4-101(c) (LexisNexis 2003) states, in pertinent part:
Except in cases above enumerated, the estate of any intestate shall descend and be distributed as follows:
(i) To his children surviving, and the descendents of his children who are dead, the descendents collectively taking the share which their parents would have taken if living[.]
6Equitable adoption does not create an adoption; rather, it merely recognizes its existence for limited purposes. Holt v. Burlington Northern R. Co., 685 S.W.2d 851, 858 (Mo.App. 1984).
7Wyomings adoption statutes are found at Wyo. Stat. Ann. 1-22-101 through 1-22-203 (LexisNexis 2003).
8While adoption is not defined in Wyo. Stat. Ann. 1-22-101, which is the definitions section of Wyomings adoption statutes, Wyo. Stat. Ann. 1-22-114, which sets forth the effects of adoption, contains language similar to that cited above:
(a) Upon the entry of a final decree of adoption the former parent, guardian or putative father of the child shall have no right to the control or custody of the child. The adopting persons shall have all of the rights and obligations respecting the child as if they were natural parents.
(b) Adopted persons may assume the surname of the adoptive parent. They are entitled to the same rights of person and property as children and heirs at law of the persons who adopted them.
9See 2 Am.Jur.2d, Adoption, supra, 53 at 931-32 n.10-n.13; George A. Locke, Annotation, Modern Status of Law as to Equitable Adoption or Adoption by Estoppel, 97 A.L.R.3d 347, 3, 359-66 (1980); Rebecca C. Bell, supra, XXIX Stetson L. Rev. at 417 n.12; Beth Ann Yount, Note, Lankford v. Wright: Recognizing Equitable Adoption in North Carolina, 76 N.C. L. Rev. 2446, 2446 n.5 (1998); and J.C.J., Jr., Note, Equitable Adoption: They Took Him Into Their Home and Called Him Fred, 58 Va. L. Rev. 727, 727-28 n.7 and n.10 (1972).
10But see Thomas v. Malone, 142 Mo.App. 193, 126 S.W. 522, 523-24 (1910), where an equitably adopted child was allowed to pursue a claim against a will as a pretermitted heir. Further, some courts have begun to apply the doctrine to other claims, such as life insurance benefits, inheritance tax considerations, wrongful death actions, workers compensation benefits, child support, and will contests. George A. Locke, supra, 97 A.L.R.3d at 353.
11Hicks v. Simmons, 271 F.2d 875, 877 (10th Cir. 1959) (oral promise to adopt and to leave adopting parents property to adoptee); In re Garys Estate, 69 Ariz. 228, 211 P.2d 815, 818 (1949) (oral promise to feed, clothe, educate, and make heir); Foster v. Cheek, 212 Ga. 821, 96 S.E.2d 545, 546-50 (1957) (oral promise to adopt and to make heir to inherit as natural child); Fredrick v. Christensen, 73 S.D. 130, 39 N.W.2d 529, 531-32 (1949) (legal adoption coupled with promise to make heir); In re McLeans Estate, 219 Wis. 222, 262 N.W. 707, 708 (1935) (no adoption promised, but oral promise to provide in will).
12The children had not lived in his home for six months, as required by Wyo. Stat. Ann. 1-22-111(a)(iii) (W.S. 1977).
13The adoption statutes and the probate code must be read together to determine legislative intent. In re Cadwells Estate, 26 Wyo. 412, 186 P. 499, 500 (1920).
14That was the point of Chief Justice Mitchells dissent in Lankford, 489 S.E.2d at 608.
16We are not herein determining whether equitable adoption may be applied in an intestate setting. Wyo. Stat. Ann. 2-1-102(b) (LexisNexis 2003) allows for the appropriate exercise of equity in a probate case: Unless displaced by the particular provisions of this code, the principles of law and equity supplement the code provisions. See Calista Corp., 564 P.2d at 61 n.18.
17N.C. Gen. Stat. 29-17 (2001). Succession by, through and from adopted children (a) A child, adopted in accordance with Chapter 48 of the General Statutes or in accordance with the applicable law of any other jurisdiction, and the heirs of such child, are entitled by succession to any property by, through and from his adoptive parents and their heirs the same as if he were the natural legitimate child of the adoptive parents.
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