ILNews

Judges differ on application of high court ruling

Back to TopE-mailPrintBookmark and Share

An Indiana Court of Appeals judge dissented from his colleagues today in a ruling involving the ownership of certain joint accounts because he believed an Indiana Supreme Court decision was binding in the case.

"If we were writing on a blank slate I would agree with that result. We are not writing on a blank slate," wrote Judge Michael Barnes in his dissent. "As an intermediate appellate court, we must follow precedent set by our supreme court, even if we do not agree with it."

In the case In Re: The estate of Harry L. Rickert, Carole Baker, personal representative v. Keta Taylor, No. 18A04-0812-CV-746, Judge Barnes disagreed with the majority that In Re Estate of Banko, 622 N.E.2d 476, 480 (Ind. 1993), doesn't apply to the instant case. In Banko, the high court noted under the Non-Probate Transfer Act, there is a statutory presumption in favor of the surviving joint account holder, regardless of the relationship between the decedent and survivor. The statutory presumption requires that a party challenging the survivor's rights to the joint account proceeds establish that the decedent did not intend for the survivor to receive the funds.

Keta Taylor took care of Harry Rickert and his wife until their deaths. Before he died, Harry added Taylor as a sixth residuary beneficiary and executed a power of attorney naming her as his attorney-in-fact. After that, she opened 15 certificates of deposit in his name, with herself as joint owner or payable on death to the beneficiary of the accounts. Rickert only signed paperwork related to two of these accounts.

Carole Baker, as personal representative and beneficiary, argued the accounts should be considered property of the estate. The trial court ruled the accounts presumptively belong to Taylor unless the estate could prove "a different intention" on Rickert's part when they were created.

The majority reversed and remanded for further proceedings, because Rickert couldn't have had any intention regarding the ownership of the accounts at his death because he was allegedly incompetent in the last few years of his life when the accounts were made. As such, the statutory presumption of rights of survivorship in the joint account owner or POD beneficiary shouldn't apply, wrote Judge Melissa May. The majority also held Banko doesn't require application of the NPTA statutory presumption in favor of Taylor as POD beneficiary or joint account holder under the facts of the case. It can't be applied where a testator is unaware the accounts are being opened or is incompetent to form the requiste intent that they benefit the survivor, she wrote.

In his dissent, Judge Barnes argued Banko applied to the instant case and the Supreme Court didn't state any exceptions to this rule.

"If our supreme court in Banko was not persuaded to reverse a trial court's judgment that a joint account survivor was entitled to the account, even where there was clear evidence the decedent was incapacitated when some of the transactions occurred, I conclude we should not reverse the trial court's judgment in this case, where the evidence is less clear regarding Rickert's incapacity or when it might have occurred in relation to when the joint accounts were opened," he wrote.

Judge Barnes urged the Supreme Court to reconsider Banko's breadth given that an unscrupulous caregiver could take advantage of someone and get joint tenancy of accounts; he also urged the General Assembly to enact legislation that would exempt situations such as the one in this case from the NPTA's action.

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. From his recent appearance on WRTV to this story here, Frank is everywhere. Couldn't happen to a nicer guy, although he should stop using Eric Schnauffer for his 7th Circuit briefs. They're not THAT hard.

  2. They learn our language prior to coming here. My grandparents who came over on the boat, had to learn English and become familiarize with Americas customs and culture. They are in our land now, speak ENGLISH!!

  3. @ Rebecca D Fell, I am very sorry for your loss. I think it gives the family solace and a bit of closure to go to a road side memorial. Those that oppose them probably did not experience the loss of a child or a loved one.

  4. If it were your child that died maybe you'd be more understanding. Most of us don't have graves to visit. My son was killed on a state road and I will be putting up a memorial where he died. It gives us a sense of peace to be at the location he took his last breath. Some people should be more understanding of that.

  5. Can we please take notice of the connection between the declining state of families across the United States and the RISE OF CPS INVOLVEMENT??? They call themselves "advocates" for "children's rights", however, statistics show those children whom are taken from, even NEGLIGENT homes are LESS likely to become successful, independent adults!!! Not to mention the undeniable lack of respect and lack of responsibility of the children being raised today vs the way we were raised 20 years ago, when families still existed. I was born in 1981 and I didn't even ever hear the term "CPS", in fact, I didn't even know they existed until about ten years ago... Now our children have disagreements between friends and they actually THREATEN EACH OTHER WITH, "I'll call CPS" or "I'll have [my parent] (usually singular) call CPS"!!!! And the truth is, no parent is perfect and we all have flaws and make mistakes, but it is RIGHTFULLY OURS - BY THE CONSTITUTION OF THIS GREAT NATION - to be imperfect. Let's take a good look at what kind of parenting those that are stealing our children are doing, what kind of adults are they producing? WHAT ACTUALLY HAPPENS TO THE CHILDREN THAT HAVE BEEN RIPPED FROM THEIR FAMILY AND THAT CHILD'S SUCCESS - or otherwise - AS AN ADULT.....

ADVERTISEMENT