Maley v. Burns

The executor of the will of Mary Maley, deceased, and certain beneficiaries thereunder brought suit in the circuit court of
Knox County against Estelle Burns and others, seeking to set aside two deeds from decedent to Estelle Burns dated July 12,
1947, and November 24, 1948, or to establish a trust in the properties conveyed thereby. The court dismissed the complaint
for want of equity as to the deed of July 12, 1947. It further decreed that Estelle Burns holds the real estate conveyed by
the deed of November 24, 1948, in trust to sell the same and to make certain designated payments from the proceeds. A freehold
being involved, defendant Estelle Burns appeals directly to this court from that part of the decree establishing a trust in
the property conveyed by the 1948 deed, and plaintiffs and certain of the defendants have perfected a cross appeal as to other
portions of the decree. The complaint alleged that the conveyances were obtained by undue influence on the part of appellant. It also alleged that
decedent did not intend to convey absolute title to the real estate, but conveyed the properties only for the purpose of
having appellant manage and operate them for decedent's benefit. The answer filed by appellant merely denied the material
allegations of the complaint. The Statute of Frauds has not been invoked as a defense. The cause was referred to a master
in chancery to take the proof and report his conclusions. After hearing the evidence he made his report finding that no fiduciary
relationship existed between decedent and appellant; that neither deed was made as a result of any undue influence upon decedent;
and that on the dates of the conveyances they were intended as absolute conveyances and were not made for the purpose of management
or operation of the properties for decedent's benefit. The master recommended that a decree be entered declaring appellant
the absolute owner of each of the parcels of real estate. As to the real estate conveyed by the 1947 deed the chancellor entered
a decree in accordance with the recommendations of the master. With respect to the property conveyed by the 1948 deed, however,
the court set aside the master's findings and decreed that at the time of the conveyance appellant occupied a confidential
or fiduciary capacity with decedent, that the conveyance was made without any undue influence by aplant or anyone acting in
her behalf, but that the deed was executed and delivered, by reason of the confidential and fiduciary relationship, in trust
to sell the real estate and pay the net proceeds as follows: (1) pay $4000 to Adele M. Maley, $1500 to Fred L. Maley, $500
to each Robert F. Maley, William F. Maley, Estelle Trost and Elizabeth Maley Teamster, and $500 for the saying of masses for
decedent; (2) pay all just claims or indebtedness against the estate of Mary E. Maley, deceased (except the claimed indebtedness
of said estate to Adele M. Maley and Fred L. Maley), and pay all costs of administration of said estate; and (3) pay to Estelle
Marie Burns, the appellant, the balance remaining after the payment of the items designated in (1) and (2) above. It was further
decreed that if the net proceeds of sale were insufficient to pay such items then appellant shall account for all rents,
issues and profits received from the real estate and apply the same to the payment of said items.