Estate Of Frances Cleveland v. Gorden

837 S.W.2d 68 (Tenn.Ct.App. 1992)

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Nature of the Case

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Facts

Frances supported herself on social security, a modest investment income, and income from a trust by a deceased sister. She became seriously ill in 1984 and Gorden her niece traveled to Frances because she was 92 and had no one else to care for her. Gorden tried to look after her aunt but had to put her in a home. When that was done, Gorden discussed the finances of Frances with the officers at Third National Bank in Nashville where Frances maintained her accounts. The bank advised Gorden that she would be able to obtain full reimbursement for any expenditures made if she opened a separate account and maintained a detailed expense statement. Gorden opened the account and deposited into it all the income she got from a trust her mother had set up for her. In February 1984, Gorden used her money to pay Frances’ bills. Frances’ monies continued to be deposited into her own accounts, and the bank occasionally took money from Frances’ accounts when there was not enough in Gorden’s to meet the checks drawn on it. Frances was aware of what Gorden was doing and told a companion that Gorden would get everything if there was anything left in her estate. In January 1989, Frances finally gave Gorden a limited power of attorney to write checks on her account to pay her expenses. Frances died three months later. Third National Bank declined to serve as executor and Gorden filed a timely claim for reimbursement of $99,741 for expenses from 1984-89. The administrator opposed such reimbursement in that the sums were gifts since Frances had never agreed to reimburse Gorden. The probate court agreed, and Gorden appealed.