In Re Estate of Paul D. Freeman

Syllabus

This appeal arises from an action to remove the decedent's son as the executor of the estate. The action also sought to remove the decedent's son as the nominated trustee of two testamentary trusts however, the trustee never assumed his duties because neither trust was ever funded. The decedent's wife was the principal beneficiary of the estate and both testamentary trusts. The action was initiated by the conservator for the decedent's wife who alleged, inter alia, that the executor/trustee failed to distribute any property or income to the wife and used the assets for his personal benefit. The conservator also alleged that he improperly used the estate's assets to satisfy a bank loan that encumbered real property he jointly owned with the decedent for which he and the decedent were liable. The conservator claimed the bank loan was not a lawful debt of the estate because the bank failed to file a claim against the estate within the time limits set forth in Tenn. Code Ann. § 30-2-307. In response, the executor/trustee contended the action to remove him was barred by the one-year statute of limitations for breach of trust actions. He also contended the debt to the bank was properly paid in accordance with the law of exoneration. After a hearing, the trial court found that the law of exoneration did not apply and held that the estate was not obligated on the debt to the bank because the bank did not timely file a claim against the estate. Additionally, the trial court removed the decedent's son as both the executor and trustee based on his persistent failure to administer the estate and appointed a successor executor and successor trustee. The successor executor filed an inventory and accounting for the estate, and the former executor filed an objection. At the hearing that followed, the former executor submitted into evidence a document entitled \Land Agreement\ and claimed that the agreement was enforceable against the estate as a contract to make a will. The trial c