Laymon v. Minn. Premier Props., LLC
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Laymon v. Minn. Premier Props., LLC
Opinion of the Court
This case requires us to decide whether, under Minnesota Statutes section 524.3-101 (2016), real property devolves to a residuary devisee immediately upon the testator's death.
Appellant Mary Laymon, in her capacity as personal representative to her father's estate, sued respondents Minnesota Premier *451Properties (Premier) and six others to quiet title to residential property owned by her father, Howard Laymon, at his death.
The district court concluded that John did not transfer a valid ownership interest in his father's property and granted summary judgment to Mary. The court of appeals reversed. It interpreted the statute to allow real property to devolve immediately upon a testator's death to a residual devisee and therefore concluded that John conveyed a valid interest in the property. Laymon v. Minn. Premier Props., LLC ,
FACTS
In 2005, Howard bought a house, which he financed with a mortgage. He died testate almost 10 years later, in January 2015. His three adult children, Mary Laymon, John Laymon, and Janet Wolff, survived him. In his will, he named Mary as personal representative of his estate. He also devised all of his "tangible personal property" and the residue of his estate, in equal shares, to his three children.
After Howard died, the mortgage on his property went into default and, in May 2015, the bank began foreclosure proceedings. On June 29, 2015, Wells Fargo bought the property at a sheriff's sale. Shortly after the sale, the court confirmed the appointment of Mary as personal representative and issued her letters testamentary, which enabled her to administer the estate.
Within 4 days of the sheriff's sale, John and his wife conveyed whatever interest they had in the property to Minnesota Premier Properties, LLC (Premier) by quitclaim deed, in exchange for $10,000.
On September 15, 2015, Mary, as personal representative of Howard's estate, *452sued Premier, along with the other entities involved in the transactions related to the property, asserting quiet-title and slander-of-title claims regarding the property. On October 6, 2015, Blue Gold asserted itself as an owner of an interest in the property and redeemed it. Wells Fargo accepted the redemption funds and issued a Certificate of Redemption, which was recorded the same day.
In November 2015, Mary moved for partial summary judgment, and the district court held a hearing in December, about a week before the redemption period was set to expire. The district court granted Mary's motion for partial summary judgment 3 months later, concluding that John did not have an interest to convey to Premier through the quitclaim deed.
The court of appeals reversed the district court on the issue of whether John had a conveyable interest in the property. Interpreting Minnesota Statutes section 524.3-101, it held "that a valid, transferrable ownership interest in real property devolves immediately upon a testator's death to a person to whom the property is devised by the testator's will, even if the property is devised through a residuary clause rather than as a specific devise." Laymon ,
ANALYSIS
We review an appeal from summary judgment de novo, including "whether there are any genuine issues of material fact and whether the district court erred in its application of the law to the facts." Commerce Bank v. W. Bend Mut. Ins. Co. ,
The dispute before us concerns the interpretation of the provision that governs the devolution of an estate at death. The provision explains when and to whom a deceased person's property transfers. It states in full:
The power of a person to leave property by will, and the rights of creditors, devisees, and heirs to the person's property are subject to the restrictions and limitations contained in chapters 524 and 525 to facilitate the prompt settlement of estates. Upon death, a person's real and personal property devolves to the persons to whom it is devised by last will or to those indicated as substitutes for them in cases involving lapse, disclaimer, renunciation, or other circumstances affecting the devolution of testate estates, or in the absence of testamentary disposition, to the decedent's heirs, or to those indicated as substitutes for them in cases involving disclaimer, renunciation *453or other circumstances affecting devolution of intestate estates, subject to the provisions of sections 525.14 [the descent of cemetery lots] and 524.2-402 [the descent of a homestead], the allowances provided for by sections 524.2-403 [the descent of exempt property, including a small amount of personal property] and 524.2-404 [allowing family allowance to be paid out of the state for up to 18 months], to the rights of creditors, elective share of the surviving spouse, and to administration.
Although the parties disagree about the interpretation of this statute, no one claims that it is ambiguous. Premier contends that property subject to a residuary devise, like property subject to a specific devise, devolves instantly upon death, which would mean that John had an interest in the property when he conveyed it to Premier. We take Mary's position to be that property in the residue does not devolve instantly to residuary devisees.
We interpret statutory language to "ascertain and effectuate" the Legislature's intent.
In ascertaining the plain meaning of the statute, we construe "words and phrases ... according to rules of grammar and according to their common and approved usage."
To determine whether a residuary devisee has a transferable interest in property in the residue of an estate, we interpret the meaning of the phrase "devolves to the persons to whom it is devised by last will" in section 524.3-101. "Devolve" is a legal term that means "[t]o transfer (rights, duties, powers, etc.) to another" and, when concerning money or land, means "to pass by transmission or succession." See Devolve , Black's Law Dictionary (10th ed. 2014). According to the Uniform Probate Code, "[p]erson" is "an individual, a corporation, an organization, or other legal entity" and " 'devise,' when used as a noun, means a testamentary disposition of real or personal property and when used as a verb, means to dispose of real or personal property by will." Minn. Stat § 524.1-201(12), (39) (2016). The statute also defines *454"devisee" as "any person designated in a will to receive a devise." Minn. Stat § 524.1-201(13) (2016). Accordingly, this phrase of the statute communicates that property transfers to the persons designated in the will as devisees.
We conclude that the language "persons to whom it is devised" unambiguously includes residuary devisees.
To "give effect to all [of the statute's] provisions,"
Howard named all three of his children as residuary devisees, and the residue of his estate included his house. Because we conclude that property in a residuary devise devolves upon death of the testator, the three children's interests in the residue of Howard's estate devolved at his death. Accordingly, John had a transferable ownership interest in his father's house when he and his wife conveyed the interest by quitclaim deed to Premier.
Mary focuses on a different part of section 524.3-101 to contend that John did not have a conveyable interest in the residue. Section 524.3-101 states that "a person's real and personal property devolves ... to those indicated as substitutes for [devisees or heirs] in cases involving ... lapse, disclaimer, renunciation, or other circumstances affecting the devolution of testate estates." (Emphasis added.) We understand Mary to argue that the personal representative's power to sell property in the residue is a "circumstance[ ] affecting the devolution of testate estates" and thus the property devolves to the personal representative as a "substitute."
This argument fails for three reasons. First, the statute already specifically addresses the functions of the personal representative *455in its reference to "administration."
Second, "other circumstances affecting the devolution of testate estates" is part of a larger construction: "a person's real and personal property devolves to the persons to whom it is devised by last will or to those indicated as substitutes for them in cases involving lapse, disclaimer, renunciation, or other circumstances affecting the devolution of testate estates ."
Finally, the personal representative's power to sell property in the residue is not similar to a "lapse, disclaimer, [or] renunciation," meaning that it is inappropriate to consider it to be an "other circumstance[ ] affecting the devolution of testate estates,"
Mary's remaining argument also fails. Minnesota Statutes section 524.3-711 gives a personal representative great power over the property of the estate. See
As we have decided above, respondents had an interest that a residuary devisee conveyed to them through a quitclaim deed. That interest was "subject to ... administration."
We need not determine the precise limitations on respondents' interest during the period of administration because Mary did not exercise any powers of administration *456inconsistent with respondents' interest. Moreover, we need not decide this issue because we have answered the sole issue raised in the petition for review-whether the court of appeals erred when it held that "under
CONCLUSION
For the foregoing reasons, we affirm the decision of the court of appeals, including the remand to the district court.
Affirmed.
THISSEN, J., not having been a member of this court at the time of submission, took no part in the consideration or decision of this case.
Because the facts involve several members of the Laymon family, we use first names in this opinion for clarity.
A quitclaim deed "passes only the estate which the grantor could lawfully convey." Everest v. Ferris ,
After the transaction with John and his wife, Premier executed and recorded a mortgage against the property in favor of Aquarium Capital Investments, LLC (Aquarium). The next week, Premier quitclaimed its interest in the property to Blue Gold Ventures, LLC and Aquarium assigned its mortgagee's interest to 4Path Realty. The respondents here include the entities involved in these transactions.
The effect of the redemption of the property and the actual ownership interests of the parties, in light of the redemption period that ended shortly after the district court hearing, are not before us.
The parties appear to agree that, under section 524.3-101, real property subject to a specific devise devolves instantly upon death, which was the rule at common law. Bengtson v. Setterberg ,
A "specific devise" is a "devise that passes a particular piece of property." Devise, Black's Law Dictionary (10th ed. 2014).
Reference
- Full Case Name
- Mary LAYMON as the personal representative of the Estate of Howard Arnold Laymon v. MINNESOTA PREMIER PROPERTIES, LLC
- Cited By
- 10 cases
- Status
- Published