Basel v. Schlarb

Summary

The Ohio Eleventh District Court of Appeals reversed and remanded a probate court judgment finding Lori Schlarb guilty of concealing estate assets under R.C. 2109.50 and assessing penalties, damages, attorney fees, and costs. The court held that the concealment statutes generally apply only to property owned by the decedent at death, and that the narrow exception for invalid inter vivos transfers did not apply on the evidence presented. The court therefore found the second assignment of error regarding damages moot.

Holdings

1. An R.C. 2109.50 and 2109.52 concealment proceeding applies to property the decedent owned under law at death, including property transferred inter vivos only when the transfer is shown to be invalid. Because Schlarb acted under a valid power of attorney, Florence never transferred ownership of the assets to Schlarb, and the appellee did not prove that the underlying transactions were wrongful, fraudulent, or invalid, the funds spent for Florence's benefit during her lifetime were not exclusive property of the estate and could not be recovered through the concealment proceeding.
2. The damages assignment of error was moot because the court reversed the underlying concealment judgment for lack of authority to adjudicate the particular case.

Questions Presented

1. Whether the probate court could adjudicate a concealment action under R.C. 2109.50 and 2109.52 concerning funds spent or transferred during the decedent's lifetime by an attorney-in-fact under a valid power of attorney, where the funds were not shown to be owned by the estate at the decedent's death.
2. Whether the trial court erred by failing to provide a computation of damages.

Disposition

reversed_and_remanded