Preview:

REPORTED IN THE COURT OF SPECIAL APPEALS OF MARYLAND No. 1689 September Term, 2006

KATHLEEN SEXTON SCHOUKROUN

v.

MARYSE L. KARSENTY & BERNADETTE SCHOUKROUN

Murp hy, C.J., Davis, Kenn ey, III, Jam es A., (R etired, Specially Assigned), JJ.

Opinion by Murphy, C.J.

Filed: December 11, 2007

HEADN OTE: Schoukroun v. Karsenty, et al., No. 1689, September Term, 2006

ESTATES AND TRUSTS; THE EFFECT OF KNELL V. PRICE , 318 MD. 501 (1990) ON A DECEDENT'S TRANSFER-ON-DEATH (TOD) ACCOUNTS FOR PURP OSES O F CAL CULA TING SURV IVING SPOU SE'S ST ATUT ORY SHAR E: The statutory share of a decedent's surviving spouse includes the decedent's TOD accou nts bec ause, under Knell v. Price, any transfer in which the decedent retained dominion and control over the property during his or her lifetime is subject to the surviving spouse's statutory share.

During its 1989 annual conference, the National Conference of Commissioners on Uniform State Laws approved and recommended for enactment the Uniform TOD Security Registration Act (the Uniform Act). The Commissioners' Summary of this Act included the following highlights: C Allows o wners of investmen t securities to de signate death beneficiaries when the issuers provide such a service to their customers. Frees issue rs of any liability for a g ood faith tra nsfer to any beneficiaries. Preserves th e rights of a d eceased o wner's cre ditors in securities that are transferred to any beneficiaries. Preserves a customer/owner's control over the securities, including the power to revoke any beneficiary designation, during the life of that customer/own er. Provides that TO D transfers are non testamentary transfers. Does for investment securities what POD (Pay on Death) statutes have done for cash accounts in almost every state.

C

C

C

C

C

Section 9 o f the Unif orm Ac t, in pertinent pa rt,1 provides: (c) A transfe ree... is subject to liab ility to any probate esta te of the dec edent for a llowed cla ims agains t that estate and statutory allowances to the decedent's spouse and children to the extent the estate is insufficient to satisfy

Section 9 also includes provisions relating to the times within which, and procedures by which, surviving spouses and creditors must assert their claims against the TOD transfe ree. 1

1

those c laims an d allow ances. T he liabilit y of a ... transferee may not exceed the value of [TO D] transfers received by that transferee. Clarke A. Gravel, Esq. of Burlington, Vermont, was on the Comm issioners' Committee that drafted the Uniform Act. When Vermont adopted that Act, Mr. Gravel authored a Vermont Bar Journal article in which he stated: Under the uniform law, the transfer-on-death form retains for the owner of the property (such as stocks, etc.) all control until the owner's death. The TOD designee has absolutely no powe r over th e secur ities until th at occu rrence. *** Existing creditors' interests do not change. If a creditor had any interest in or to the assets of the deceas ed, those righ ts carry over to the new owner of the same assets. The new owne r must sa tisfy the cre ditor's c laims. *** In addition to protecting c reditors' claim s, the Act pro tects statutory allowa nces to the d ecedent's s pouse an d children to the extent the estate is insufficient to satisfy those claims and allowa nces. *** This Act provides an effective, efficient and thus useful tool for the p robate p ractition er. Clarke A. Gra vel, The Un iform Tra nsfer on D eath Secu rity Registratio n Act (No. 2 3, Acts of 1999 ), 25-SEP V t. B.J. 14 (1999). The Vermont statute that was the subject of Mr. Gravel's article included the

2

following provision: (b) A transf eree of a n onproba te transfer is su bject to liability to any probate estate of the decedent for allowed claims against that estate and statutory allowances to the decedent's spouse an d children to the extent the estate is insuff icient to satisfy those claims and allowances. The liability of a nonprob ate transfere e may not ex ceed the v alue of no nprobate transfers received by that transferee. West's Verm ont Sta tutes A nnotate d, Title N ine, Par t 5, Cha pter 13 4,

Download Schoukroun v. Karsenty.pdf

Maryland Law