Agnes Rick is an 80-year-old woman suffering from Alzheimer''s disease. In June 1990, Mrs. Rick''s husband died intestate. Mr. Rick''s estate consisted of various assets, including a home and a 25-acre parcel of land. John Sailer, Mrs. Rick''s neighbor, offered to serve as the administrator for the estate. In June 1992, Mrs. Rick executed a deed conveying her entire interest in the parcel of land, worth $180,000, to a corporation controlled by Mr. Sailer for no consideration. At about the same time, Mrs. Rick executed a new will, durable power of attorney, living will, and trust agreement. The will granted Mr. Sailer, who was now Mrs. Rick''s attorney-in-fact, the option to buy her home for $160,000, despite the fact that the home had been valued at $215,000 before Mrs. Rick made $40,000 in improvements. As executor of the will, Mr. Sailer would also receive a substantial commission from the sale of the home and was named trustee of the trust account.
In April 1993 Mrs. Rick was diagnosed with cerebral atrophy and dementia and was subsequently placed in a nursing home. Mrs. Rick''s niece, Patricia Cannon, brought suit seeking appointment of a bank to serve as guardian of Mrs. Rick''s property and appointment of a public guardian to act as Mrs. Rick''s personal guardian. Ms. Cannon argued that Mrs. Rick lacked the mental capacity to execute the durable power of attorney and other instruments. She also argued that Mr. Sailer should be removed as Mrs. Rick''s attorney-in-fact and as trustee of the trust agreement because of conflicts of interest.
The court finds that Mrs. Rick lacked the requisite mental capacity to execute the deed, durable power of attorney, trust agreement, and will. According to both expert and lay testimony, Mrs. Rick suffered from serious "organic mental syndrome, secondary to Alzheimer''s disease" beginning in late 1989. The court also holds that even if Mrs. Rick was competent to execute the various instruments, the elements of undue influence are abundantly present. Thus, the court removes Mr. Sailer as trustee of the trust agreement and as attorney-in-fact and orders the parties to submit an implementation memorandum.
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