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Sisters can’t prove brother unduly influenced mother in crafting estate plan

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The Indiana Court of Appeals affirmed the order by a trial court that the execution of an option contract by a woman to her son was enforceable. The woman’s daughters claimed the contract was a result of undue influence.

Kenneth Hayes has power of attorney over his mother. In 2005, Phyllis Hayes executed a promissory note, mortgage, will, and an option contract as part of her estate plan created by attorney Joseph Certain. Certain created the documents pursuant to Phyllis Hayes’ request and videotaped Phyllis Hayes on March 3, 2005, explaining why she set up her estate plan the way she did. The option contract allowed Kenneth Hayes to purchase her 200-acre farm at $2,500 per acre, for a total price of $500,000, a reasonable fair market price at the time. She explained that her son would receive more of the assets than her other children because she was repaying a $180,000 loan he had made to her and her husband in the 1980s to keep the farm running.

Kenneth Hayes told his sisters Jo Ann Hayes and Dianna Hale in 2010 that he was going to purchase the farm. They objected because the farm is worth far more now than it was when their mother created the option contract. Their expert valued the price per acre between $8,000 and $10,000.
 
After a hearing, the trial court found that Kenneth Hayes did not unduly influence his mother to make the contract. Although his mother was found to be incompetent in 2011, her doctor testified that she was mentally competent to enter into the 2005 contract. The sisters appealed.

“The trial court’s numerous findings, which were based on Phyllis’s attorney’s testimony and the video of Phyllis taken at the time the option contract was executed, support its conclusion that Kenneth did not unduly influence Phyllis. Further, any doubt as to whether the trial court held Kenneth to the higher standard of proof is eliminated by the trial court’s conclusion ‘that it would be reasonable to conclude that [Phyllis] was in a superior position’ because she was represented by counsel and Kenneth was not,” Judge Michael Barnes wrote in Guardianship of Phyllis D. Hayes, an Adult, Joann Hayes and Dianna Hale v. Kenneth J. Hayes, 52A02-1308-GU-751.

The sisters simply have not shown that the manner in which the estate plan was crafted establishes that Kenneth Hayes failed to rebut the presumption of undue influence, the appeals court held.

 

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  1. Im very happy for you, getting ready to go down that dirt road myself, and im praying for the same outcome, because it IS sometimes in the childs best interest to have visitation with grandparents. Thanks for sharing, needed to hear some positive posts for once.

  2. Been there 4 months with 1 paycheck what can i do

  3. our hoa has not communicated any thing that takes place in their "executive meetings" not executive session. They make decisions in these meetings, do not have an agenda, do not notify association memebers and do not keep general meetings minutes. They do not communicate info of any kind to the member, except annual meeting, nobody attends or votes because they think the board is self serving. They keep a deposit fee from club house rental for inspection after someone uses it, there is no inspection I know becausee I rented it, they did not disclose to members that board memebers would be keeping this money, I know it is only 10 dollars but still it is not their money, they hire from within the board for paid positions, no advertising and no request for bids from anyone else, I atteended last annual meeting, went into executive session to elect officers in that session the president brought up the motion to give the secretary a raise of course they all agreed they hired her in, then the minutes stated that a diffeerent board member motioned to give this raise. This board is very clickish and has done things anyway they pleased for over 5 years, what recourse to members have to make changes in the boards conduct

  4. Where may I find an attorney working Pro Bono? Many issues with divorce, my Disability, distribution of IRA's, property, money's and pressured into agreement by my attorney. Leaving me far less than 5% of all after 15 years of marriage. No money to appeal, disabled living on disability income. Attorney's decision brought forward to judge, no evidence ever to finalize divorce. Just 2 weeks ago. Please help.

  5. For the record no one could answer the equal protection / substantive due process challenge I issued in the first post below. The lawless and accountable only to power bureaucrats never did either. All who interface with the Indiana law examiners or JLAP be warned.

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