In re Estate of Rickert

Summary

The Indiana Supreme Court held that an attorney-in-fact’s use of a power of attorney to establish joint accounts benefiting herself is presumed invalid as self-dealing. The Non-Probate Transfer Act’s survivorship presumption does not eliminate the fiduciary’s burden to prove that such accounts were validly established with the principal’s participation. The court also held that filing an adverse party’s deposition without using it for an evidentiary purpose does not waive an objection under Indiana’s Dead Man’s Statute, and it remanded for restoration of the affected accounts to the estate.

Holdings

1. The Non-Probate Transfer Act's presumption that funds in a joint account pass to the surviving account holder does not eliminate the fiduciary's duty to prove that an account was validly established when the attorney-in-fact used the power of attorney to benefit herself. Taylor therefore had to prove by clear and convincing evidence that her use of Rickert's power of attorney to create survivorship interests was voluntary and fair.
2. An estate waives its objection to an adverse claimant's competency under the Dead Man's Statute only by using the claimant's deposition for an evidentiary purpose, such as offering it into evidence or citing it in support of or opposition to a motion. Merely filing the deposition does not constitute waiver.

Questions Presented

1. Whether the Non-Probate Transfer Act overrides the common-law and statutory presumptions invalidating self-dealing transactions by an attorney-in-fact.
2. Whether filing an adverse claimant's deposition with the trial court, without offering or citing it for an evidentiary purpose, waives the Estate's objection under the Dead Man's Statute.

Disposition

reversed_and_remanded