Keith v. Lulofs

State Court (South Eastern Reporter)4/20/2012
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Full Opinion

PRESENT: All the Justices

WALTER STEVEN KEITH
                                            OPINION BY
 v.   Record No. 110433               JUSTICE CLEO E. POWELL
                                          April 20, 2012
VENOCIA W. LULOFS, EXECUTRIX OF
THE ESTATE OF LUCY F. KEITH

        FROM THE CIRCUIT COURT OF THE CITY OF NEWPORT NEWS
                     Timothy S. Fisher, Judge

      The issue before this Court is whether the trial court

erred in deciding that Walter Steven Keith ("Keith") failed to

prove that the 1987 wills executed by Arvid L. Keith, Jr.

("Arvid") and Lucy F. Keith ("Lucy") were irrevocable,

reciprocal wills.   We hold that the trial court did not err and,

therefore, will affirm the trial court's judgment.

                      I. FACTS AND PROCEEDINGS

      At the trial on this matter, the evidence proved that Arvid

and Lucy were married in 1972.    At the time of their marriage,

each had a child from a previous marriage: Arvid had a son,

Keith, and Lucy had a daughter, Venocia W. Lulofs ("Lulofs").

      Arvid and Lucy executed wills on December 9, 1987, that

were "mirror images" of each other.   Each will left the estate

first to the surviving spouse and then to Keith and Lulofs

equally.

      Arvid died on March 21, 1996, and his estate passed to Lucy

pursuant to the 1987 will.   Following Arvid's death, Lucy

executed a new will on May 17, 1996, in which she left the
entirety of her estate to Lulofs and made no provision for

Keith.   Lucy died in 2006.   After Lucy's death, Lulofs attempted

to probate Lucy's will, which Keith challenged.

     The evidence also demonstrated that in 1994, Arvid and Lucy

took out an insurance policy naming both Keith and Lulofs as the

primary beneficiaries, each with a 50% share of the proceeds.

Lucy changed the beneficiary percentages on the insurance policy

on April 1, 1996, such that Keith would receive 22% and Lulofs

would receive 78%.   Lucy changed the insurance policy again on

May 30, 1996, so that Lulofs received 100%.

     Keith testified about several conversations that he had had

about the wills and insurance policy.   Specifically, he

testified that in 1991, his father told him that he and Lucy

made "reciprocal wills" leaving everything to Lulofs and him in

equal shares.   He testified that in 1994 Lucy mentioned the life

insurance policy, saying that they did this so there "won't be

any money to fight over once we die."   He also testified that

shortly before Arvid died, Arvid told him to "watch out for

[Lucy]."   Arvid told him that he was going to ensure that

everything was divided evenly.   Keith testified that Lulofs told

him in 2006 that their parents had reciprocal wills.

     Lulofs testified that she recalled a discussion between

Arvid, Lucy, Keith and herself about the life insurance policy,

but did not remember the specifics of that conversation.

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     Keith argued that Arvid and Lucy executed reciprocal wills

in 1987 that became an irrevocable contract upon the death of

either party.    He also alleged that the estate was to be funded

with the proceeds of the life insurance policy and that the

policy was evidence of the testators' intent to make the 1987

wills irrevocable.

     Although the trial court concluded that the 1987 wills were

"mutual and reciprocal," it found that the evidence was

insufficient to prove that the wills reflected a contractual

agreement to bind the survivor.   Specifically, the trial court

noted that the attorney who drafted the 1987 wills for Arvid and

Lucy had no recollection of the wills or the circumstances under

which they were prepared and executed.   The attorney also did

not remember the 1996 will that he drafted for Lucy after

Arvid's death.

     The court admitted the insurance applications submitted by

Arvid and Lucy and the resulting joint insurance policy as

potentially corroborative evidence of Keith's testimony.    The

court concluded, however, that the insurance policy shed little

light on the intent of the testators to make the wills

irrevocable.    The trial court held that there was no evidence

that Lucy did not have the authority to change the beneficiary

of the life insurance policy after Arvid's death.



                                  3
     Finally, the trial court held that Keith's testimony as to

the intent for the wills to be irrevocable was uncorroborated

and, therefore, there was insufficient evidence that the

testators' intended to make the 1987 wills a contract when they

executed them.   The circuit court accepted Lucy's 1996 will for

probate and entered judgment accordingly.   This appeal follows.

                           II. ANALYSIS

     On appeal, Keith makes two basic arguments.   First, Keith

contends that because the 1987 wills were "mirror image" wills,

the testators' intended them to be irrevocable.    Second, he

argues that even if the content of the wills does not clearly

establish their contractual nature, he presented sufficient

corroborative evidence of the testators' intent.   Specifically,

he asserts that 1) the testimony from Keith and Lulofs

corroborated the 1987 wills; 2) the 1994 insurance policy

indicates the intent that the 1987 wills were to be irrevocable

upon the death of one testator; and 3) Keith's testimony about

various out-of-court statements by Arvid corroborate the

parties' intent.

    A. The Trial Court Did Not Err In Holding That The Wills
   Did Not Form An Irrevocable Contract Between The Testators

     Where a party asserts that the wills are reciprocal and

irrevocable, it is important to distinguish the law of wills and

the law of contracts.   See Salley v. Burns, 220 Va. 123, 131,


                                 4
255 S.E.2d 512, 516 (1979) (citing T. Atkinson, Law of Wills

§ 49, at 224 (2d ed. 1953)).   A significant distinction between

the two areas of law is that wills, unlike contracts, generally

are unilaterally revocable and modifiable.     Williams v.

Williams, 123 Va. 643, 646, 96 S.E. 749, 750 (1918).       A will

does not become irrevocable or unalterable simply because it is

drafted to "mirror" another testator's will.     See id.

     [T]he fundamental reason for this rule is that
     every purely testamentary disposition of property
     is in the nature of a gift, and a different rule
     applies where a contract "is disguised under the
     name and appearance of a will." In the latter
     event the contractual nature of the instrument
     does not necessarily defeat its character as a
     will, but enables the party for whose benefit the
     contract was made to prevent, by resorting to a
     court of equity, a revocation which would destroy
     the compact or the trust created thereby.

Id. at 646-47, 96 S.E. at 750 (citations omitted).    Thus, "when

reciprocal testamentary provisions are made for the benefit of a

third party, there is sufficient consideration for the

contractual element of the will to entitle the beneficiary to

enforce the agreement in equity, provided the contract itself is

established."   Salley, 220 Va. at 131, 255 S.E.2d at 516.      Proof

of the contractual nature of this agreement between the

testators must be "clear and satisfactory."     Id.

     Such proof "may expressly appear in the language
     of the instrument, or it may be supplied by
     competent witnesses who testify to admissions of
     the testators, or it may result as an implication
     from the circumstances and relations of the

                                 5
     parties and what they have actually provided for
     by the instrument."

Id. at 131-32, 255 S.E.2d at 516-17.

     In Black v. Edwards, 248 Va. 90, 93, 445 S.E.2d 107, 109

(1994), this Court held that the mutual and reciprocal wills at

issue were irrevocable contracts.     We based that decision upon

the unimpeached testimony of the drafting attorney who testified

that the parties intended to draft reciprocal, irrevocable

wills.   Id.   Here, the attorney who drafted the wills for Arvid

and Lucy in 1987 had no recollection of the wills or the

circumstances under which they were prepared, nor did he

remember the 1996 will that he drafted for Lucy after Arvid's

death.

     By contrast, in Salley, we determined that the evidence was

insufficient to establish an irrevocable contract where a joint

will stated that if either spouse survived the other, the

property at issue vested in the survivor.     Id. at 133, 255

S.E.2d at 517.   The third paragraph of the will also contained a

clause providing that

     [b]oth parties . . . jointly and severally agree
     not to sell, encumber or otherwise hypothecate or
     dispose of any property . . . without the written
     consent of the other party, it being the mutual
     desire and will of both parties to this
     indenbture [sic] to hold all property now owned
     of [sic] hereafter acquired by either for the use
     and benefit of their natural offsprings . . . .



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Id. at 126-27, 255 S.E.2d at 514 (emphasis in original).      The

will further specified that if neither testator survived, the

property vested in the daughters "share and share alike."      Id.

at 127, 255 S.E.2d at 514.    Salley argued that the language of

the third paragraph created a binding contract.      Id.   This Court

held that no binding contract was created by the joint will

because so holding would have required the surviving testator to

hold the entire estate for the benefit of the daughters.      Id. at

134, 255 S.E.2d at 518.   Such a strained interpretation would

have left the surviving testator destitute.    Id.

     Such an unreasonable result is completely foreign
     to the testamentary scheme established by the
     other provisions of the will. If achievement of
     that goal had been the testators' purpose,
     language more explicit could have been used.
     When an estate in fee simple is devised in one
     part of a will, by clear and unambiguous words,
     such estate is not diminished nor destroyed by
     terms contained in another part of the
     instrument, unless such terms which reduce the
     estate be as clear and decisive as the words by
     which it was created.

Id. (citing Smith v. Trustees of the Baptist Orphanage, 194 Va.

901, 908, 75 S.E.2d 491, 495-96 (1953)).

     The language at issue in Salley is very similar to the

language in the 1987 wills:

          I give, devise and bequeath unto my beloved
     [spouse] if [spouse] survives me by thirty days,
     all of my property and estate, real, personal and
     mixed, wherever situate, whether now acquired or
     acquired hereafter, to be [spouse's] in fee
     simple and [spouse's] absolute property.

                                  7
                          . . . .

          In the event that my [spouse] predeceases me
     or fails to survive me by thirty days, I give,
     devise and bequeath all of my property of every
     sort, kind and description, real, personal, and
     mixed, unto [Keith] and [Lulofs] in equal shares,
     share and share alike.

In both wills, the testators' clear intent was to transfer the

estate to the surviving spouse.

     Moreover, language in Salley was even more conducive to an

argument that it created a contract because it expressly

precluded either spouse from divesting himself or herself of any

property without the consent of the other – an action that could

only occur during the life of both.   Despite this language, when

focusing on the will as a whole, this Court found no clear and

convincing evidence of an intent to form a binding contract.

220 Va. at 134, 255 S.E.2d at 518.

     The interpretation urged by Keith would create the very

real risk that any testator who executes a will that "mirrors"

another will and contains language similar to that contained in

the wills at issue here, would be unintentionally hamstrung by

the death of the purportedly reciprocal testator.   In fact, the

testator would be unable to provide for any future spouse or any

child born or adopted during a later marriage.   Such an

interpretation is unreasonable.



                                  8
     The language of these "mirror image" wills is insufficient

alone to form a contract and, therefore, Keith failed to meet

his burden to show that the 1987 wills were irrevocable.   Thus,

the trial court did not err in so holding.

             B. The Trial Court Did Not Err In Holding
            That Keith's Testimony Was Not Corroborated

     Keith argued that even if the express language of the wills

was not sufficient to establish a contract, he presented

sufficient circumstantial evidence to establish that Arvid and

Lucy intended for the wills to be contracts.   We disagree.

     In pertinent part the Dead Man's Statute, Code § 8.01-397,

provides:

     In an action by or against a person who, from any
     cause, is incapable of testifying, or by or
     against the committee, trustee, executor,
     administrator, heir, or other representative of
     the person so incapable of testifying, no
     judgment or decree shall be rendered in favor of
     an adverse or interested party founded on his
     uncorroborated testimony.

     This statute was enacted largely to provide relief from the

harsh common law rule that would have prohibited testimony from

the surviving witness and, therefore, the nature and quantity of

the corroboration will vary depending on the facts of the case.

Virginia Home for Boys & Girls v. Phillips, 279 Va. 279, 286,

688 S.E.2d 284, 287 (2010).   Corroboration may, and often must,

be shown through circumstantial evidence, but each point need

not be corroborated nor must the corroboration rise to the level

                                 9
of confirmation as long as the corroboration strengthens the

testimony provided by the surviving witness.   Id. at 286, 688

S.E.2d at 287-88.

     Here, Keith provided no independent evidence or testimony

to corroborate his testimony regarding the contractual nature of

the wills.   Keith's argument that Lulofs' testimony corroborates

his is without merit.   Lulofs merely testified that she recalled

a discussion about the insurance policy between herself, Keith,

Arvid and Lucy, but Lulofs could not recall the specifics of that

conversation.   Further, the existence of the insurance policy

itself does not provide corroboration.   An insurance policy

taken out seven years after the wills were executed cannot

provide evidence as to the intent of the testators at the time

the wills were drafted.   Thus, no evidence in this record

corroborates Keith's testimony as required by the Dead Man's

statute.

                          III. CONCLUSION

     For the foregoing reasons, we will affirm the judgment of

trial court.

                                                      Affirmed.




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