In a case of first impression, the Supreme Court of Vermont rules that an elderly woman may be able to revoke her disclaimer of her son's estate if the estate's residual beneficiary is unable to rebut a presumption of undue influence. Carvalho v. Estate of Carvalho (Vt., No. 2008-110, June 12, 2009).
Donald Carvalho died in 2005, naming his ninety-two-year-old mother, Agnes, as the sole heir of his estate. In the event Mrs. Carvalho died before Donald, his will named his nephew, Robert Winkis, as the contingent beneficiary. Mr. Carvalho also named Mr. Winkis as the executor of his estate. Three weeks after Mr. Carvalho's death, Mr. Winkis brought Mrs. Carvalho to see the estate's attorney. With her nephew out of the room, Mrs. Carvalho executed a complete disclaimer of her interest in her son's estate, after the attorney told her that it was for "Medicaid planning" and would protect her from having to sell her home to pay for care.
Several months later, Mrs. Carvalho attempted to revoke her disclaimer and her nephew, who was no longer serving as executor, objected as the residual beneficiary. The probate court rejected Mrs. Carvalho's claim of undue influence and on appeal the superior court granted Mr. Winkis's motion for summary judgment after determining that Mrs. Carvalho had not shown any genuine issues of material fact as to whether she was incompetent or under duress when she signed the disclaimer. Mrs. Carvalho appealed.
The Supreme Court of Vermont overturns the superior court's grant of summary judgment. The court finds that while the statutory language of Vermont's Uniform Disclaimer of Property Interests Act seems to favor making disclaimers irrevocable, there is an exception in cases of undue influence. The court goes further and creates a presumption of undue influence in cases that involve "suspicious circumstances" like those found here, where Mr. Winkis was a fiduciary and also a remainder legatee.
For the full text of this decision, go to: https://info.libraries.vermont.gov/supct/current/op2008-110.html
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