B. Undue Influence

(cont.)

Lord Justice Hannen1

Will contest planning

Contest Grounds Most common grounds for a will contest are lack of

capacity and undue influence. Often alleged together; testator’s mental status overlaps

with the susceptibility element of undue influence. Warning Signs

“Unnatural disposition”—e.g., omission of child or unequal shares for children

New testamentary scheme makes a radical departure Multiple or blended families. Imposes conditions that are likely to anger the

beneficiary. Makes a disposition to a person unpopular with the

testator’s family. 2

Precautionary measures, pages 205-206

Record Building

Letters between lawyer and client Recorded video

discussion Professional examination of capacity

Maintain Secrecy

Inter vivos trustInter vivos gifts

Soothe Feelings

Family meetingLetter or video explanation

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Disinterested witnesses with affidavits Inter vivos trust

Inter vivos trusts In will challenges, the basic question facing the

court is whether the testator really intended the dispositions in the will

With a trust that has existed for an extended period of time, it’s easier to persuade the judge that it genuinely reflects the wishes of the grantor

Trustee will be able to testify to the grantor’s capacity based on series of interactions

In addition, if a long-standing trust is invalidated, months or years worth of transactions are invalid. Trying to undo all of those transactions, many of which involved innocent third parties, will discourage many courts from findings of incapacity 4

Inter vivos trusts

As a practical matter, challengers will need to contest trusts immediately. But how will they know about them? And if they do find out, they may be reluctant to antagonize the grantor, who can rewrite any trust or will

In the Kauffman case, then, Robert would have been better off had he established an inter vivos trust

Other useful steps would have been to make a bank the trustee, rather than have Walter handle business matters, and to rewrite or update the 1951 letter with each successive will

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C. Fraud

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Forms of fraud Fraud

Testator is deceived by a deliberate misrepresentation and as a result does that which s/he would not have done.

The misrepresentation must be made with the intent to deceive the testator and a purpose to influence the disposition

Fraud in the Inducement A misrepresentation causes the testator to execute or revoke

a will, to refrain from executing or revoking a will, or to include particular provisions in the wrongdoer’s favor.

Fraud in the Execution A person intentionally misrepresents the character or contents

of the instrument signed by the testator, which does not in fact carry out the testator’s intent.

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Remedies for fraud

Invalidate the fraudulently procured provision

Refuse to probate the will Probate the will and impose a

constructive trust

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Puckett v. Krida, p. 209

Two nurses were hired to care for Nancy Hooper after she returned home from being hospitalized with Alzheimer’s disease

By misleading Hooper into thinking her family was misappropriating funds, the nurses were able to obtain a power of attorney, a deed and dispositions in her will

9

Nancy Hooper

Nurse Krida

Nurse Reeves

JeanLaw

(niece)

Puckett v. KridaPuckett v. Krida, 1994 WL 475863 (Tenn. App. 1994)

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Was there undue influence or fraud?

There was a confidential relationship from the nurse-patient relationship and power of attorney

There was a suspicious circumstance from the deliberate misrepresentations that changed Ms. Hooper’s attitude toward the niece and induced her to favor the nurses This court, like others, applies the same burden-

shifting rules for fraud as for undue influence

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D. Duress

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Duress

When undue influence becomes overtly coercive, it is called duress. “A donative transfer is procured by duress if the

wrongdoer threatened to perform or did perform a wrongful act that coerced the donor into making a donative transfer that the donor would not otherwise have made.”

Restatement (Third) of Property: Wills and Other Donative Transfers §8.3(c) (2003).

The law invalidates transfers compelled by duress.

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Latham v. Father Divinep. 210

Mary Lyon had executed a will three years before her death, in which she left her estate to Father Divine, two corporations affiliated with Divine and an individual follower of Divine

Lyon’s first cousins claimed that she planned to execute a new will leaving much of her estate to them, but that Divine and the others stopped her, first by using physical force and then by killing her during surgery 14

Mary Lyon

Father Divine

Follower

Affiliated Corp. 1

Affiliated Corp. 2

Latham v. Father DivineLatham v. Father Divine, 85 N.E.2d 168 (N.Y. 1949)

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The value of a constructive trust

Invalidating the will would not have helped the contestants since they claimed that duress prevented Ms. Lyon from executing a new will that favored them Had the will been invalidated, the estate

would have gone to Ms. Lyon’s intestate heirs (the contestants were cousins but not next of kin, p. 210)

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Undue Influence

“A donative transfer is procured by undue influence if the wrongdoer exerted such influence over the donor that it[:] overcame the donor’s free will and caused the donor to make a donative transfer that

the donor would not otherwise have made….”

Restatement (Third) of Property: Wills and Other Donative Transfers §8.3(b) (2003).

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