Stephenson v. Spiegle

58 A.3d 1228 (2013)

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Nature of the Case

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Facts

Murray executed a Will, prepared by D, leaving his estate to family members or trusts for the benefit of family members. About two months after executing the Will, Murray appeared at Union State Bank and opened an account, which directed the payment of the balance, upon Murray's death, to a designated beneficiary. Desirous of naming a trust as the beneficiary, Murray was dissuaded by a bank representative because the trust documents were not at hand. Murray named 'William Spiegle Atty' as the 'pay-on-death' beneficiary. When Murray died on December 19, 2007, the account held $143,151.26, approximately one-third of his entire estate. Stephenson (P), the estate's executor, discovered the Union State account. After inquiries at the Bank, D wrote P to advise he was the account's sole beneficiary. D conveyed that he had no idea why the account was established. It was established approximately six weeks after the will was executed and that D believed the intent of this account was clearly to take it outside the estate itself. D stated he was completely unaware that this had occurred. P commenced this action alleging that Murray was not competent or that he had made a mistake and, also, that the terms of the account were a product of D's undue influence. The judge concluded it would be unconscionable to withhold the remedy of rescission and declared the estate's entitlement to the funds. D appealed.