Judges affirm decision in familial dispute over insurance funds

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When Nathaniel Kappel died, it led to a dispute in the family as to who is entitled to insurance payouts on policies that Nathaniel Kappel and his brother William took out on each other in 1996. The Court of Appeals agreed with the probate court that Nathaniel Kappel’s estate is not entitled to funds from either man’s policy.

Nathaniel and William Kappel farmed together and created an agreement in 1973 that spelled out the terms of their partnership and the value of the partnership. Both men took out an insurance policy on the other valued at $50,000 in the event of one’s death. In 1996, the two took out $750,000 insurance policies on the other, but did not add those policies into the original agreement.

Nathaniel Kappel died in March 2004. The estate sought to recover the $750,000 paid on the State Life policy insuring Nathaniel Kappel’s life. Those efforts failed, so the estate filed a petition to marshal assets. William Kappel, along with his wife, Judith, and son, Mark, filed various claims against the estate. The estate countersued claiming conversion of the First Colony policy funds Nathaniel Kappel took out on William Kappel.

The probate court denied the estate recovery of the insurance proceeds, ordered William and Mark Kappel to withdraw their claims, and denied William and Judith Kappel's complaint for contribution as to a mortgage and taxes on the brothers’ farmland filed by the father and son.

In In the Matter of the Estate of Nathaniel Kappel v. William Kappel, Judith Kappel, and Mark Kappel, 32A01-1111-ES-526, the Court of Appeals affirmed that the $750,000 proceeds from the State Life policy are not property of the estate. The estate claimed pursuant to the 1973 agreement that money was to go to the estate, and William Kappel’s failure to pay it was a breach of contract and conversion.

The probate court found the 1973 agreement was abandoned because the brothers welcomed a third party into the farming operation and did not annually update the partnership valuation as contemplated by the agreement. The Court of Appeals ruled that the estate couldn’t establish the probate court’s decision was a clear error.

There was also no error in the decision finding that William and Judith Kappel did not convert the proceeds of the First Colony policy. The evidence showed that Nathaniel Kappel applied to liquidate the policy on his brother’s life and that money was deposited into the farm’s account to address the mounting losses of the partnership. There was a question as to the validity of the signature on the insurance check.

The COA also denied the estate’s request to remand the matter for a jury trial and affirmed the decision by the probate court to deny attorney fees to William, Judith and Mark Kappel. There’s no evidence to show the estate pursued the litigation in bad faith.



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  1. This is ridiculous. Most JDs not practicing law don't know squat to justify calling themselves a lawyer. Maybe they should try visiting the inside of a courtroom before they go around calling themselves lawyers. This kind of promotional BS just increases the volume of people with JDs that are underqualified thereby dragging all the rest of us down likewise.

  2. I think it is safe to say that those Hoosier's with the most confidence in the Indiana judicial system are those Hoosier's who have never had the displeasure of dealing with the Hoosier court system.

  3. I have an open CHINS case I failed a urine screen I have since got clean completed IOP classes now in after care passed home inspection my x sister in law has my children I still don't even have unsupervised when I have been clean for over 4 months my x sister wants to keep the lids for good n has my case working with her I just discovered n have proof that at one of my hearing dcs case worker stated in court to the judge that a screen was dirty which caused me not to have unsupervised this was at the beginning two weeks after my initial screen I thought the weed could have still been in my system was upset because they were suppose to check levels n see if it was going down since this was only a few weeks after initial instead they said dirty I recently requested all of my screens from redwood because I take prescriptions that will show up n I was having my doctor look at levels to verify that matched what I was prescripted because dcs case worker accused me of abuseing when I got my screens I found out that screen I took that dcs case worker stated in court to judge that caused me to not get granted unsupervised was actually negative what can I do about this this is a serious issue saying a parent failed a screen in court to judge when they didn't please advise

  4. I have a degree at law, recent MS in regulatory studies. Licensed in KS, admitted b4 S& 7th circuit, but not to Indiana bar due to political correctness. Blacklisted, nearly unemployable due to hostile state action. Big Idea: Headwinds can overcome, esp for those not within the contours of the bell curve, the Lego Movie happiness set forth above. That said, even without the blacklisting for holding ideas unacceptable to the Glorious State, I think the idea presented above that a law degree open many vistas other than being a galley slave to elitist lawyers is pretty much laughable. (Did the law professors of Indiana pay for this to be published?)

  5. Joe, you might want to do some reading on the fate of Hoosier whistleblowers before you get your expectations raised up.