Opinion ID: 1314187
Heading Depth: 1
Heading Rank: 6

Heading: Delivery of Gift of $80,000 Was Accomplished by Operation of Law at Time of Lamplaugh's Death.

Text: [8,9] Once it is ascertained that it was the intention of the donor to make a gift inter vivos of an undivided interest in a chattel or chose in action, and all is done under the circumstances which is possible in the matter of delivery, the gift will be sustained. Lewis v. Poduska, 240 Neb. 312, 481 N.W.2d 898 (1992). Ordinarily, actual delivery is necessary where the subject of the gift is capable of manual delivery, but where actual manual delivery cannot be made, the donor may do that which, under the circumstances, will in reason be considered equivalent to actual delivery. Guardian State Bank & Trust Co. v. Jacobson, 220 Neb. 235, 369 N.W.2d 80 (1985). In the present case, the personal representative asserts that delivery of the purported gift was not accomplished by Lamplaugh's transfer of the check to Carter, because a check is not itself a transfer of funds. Rather, the personal representative argues that delivery of the amount of the check is not effectuated until it is cashed or deposited, placing the funds beyond the dominion and control of the donor. Furthermore, the personal representative argues that Carter's failure to cash the $80,000 check prior to Lamplaugh's death rendered the gift incomplete and that as a result, the gift was automatically revoked upon Lamplaugh's death. In support of his position, the personal representative cites Matter of Estate of Bolton, 444 N.W.2d 482 (Iowa 1989). In Matter of Estate of Bolton, 444 N.W.2d at 483, the Iowa Supreme Court discussed the general rule with respect to gifts by check, as recognized in Iowa: [T]he donor's check, prior to acceptance or payment by the bank, is not the subject of a valid gift either inter vivos or causa mortis. . . . The difficulty with respect to a gift of the donor's check . . . is that mere delivery of the check to the donee or to some other person for him does not place the gift beyond the donor's power of revocation, prior to payment or acceptance. Moreover, there is the further consideration . . . that the death of the drawer works a revocation of the check, so that where the check is intended as a gift causa mortis and the donor dies before payment or acceptance, the death revokes the gift. Thus, the death of the drawer effects a revocation of the alleged gift of a check not presented for payment until after such death . . . . (Quoting 38 Am. Jur. 2d Gifts § 65 (1968).) Based on these principles, the personal representative asserts that Lamplaugh's death revoked the purported gift to Carter. In contrast, Carter argues that Lamplaugh's transfer of the check itself was sufficient to accomplish delivery of the gift prior to Lamplaugh's death. Carter asserts that delivery is accomplished when all that can be done to effectuate delivery under the circumstances is done; Carter argues that Lamplaugh's transfer of the check on the evening before his death was sufficient to complete delivery under that standard. Furthermore, Carter asserts that even jurisdictions that take the position urged by the personal representative recognize an exception in which the transfer of a check constitutes constructive delivery of the funds where (1) the donor's intent is clear, (2) creditors are not prejudiced, (3) no fraud or undue influence is at issue, and (4) the check is not cashed prior to the donor's death due to circumstances beyond the control of the donor and donee. See, e.g., Sinclair v. Fleischman, 54 Wash. App. 204, 773 P.2d 101 (1989). Such an exception, Carter argues, would apply in the present case. But the parties fail to cite § 30-2723(d), which states in part that [t]he ownership right of a surviving party or beneficiary, or of the decedent's estate, in sums on deposit is subject to requests for payment made by a party before the party's death, whether paid by the financial institution before or after death, or unpaid. The surviving party or beneficiary, or the decedent's estate, is liable to the payee of an unpaid request for payment. The comments accompanying article VI of the Uniform Probate Code, upon which § 30-2723(d) is based, discuss the effect of amendments made to article VI, stating, in part, [t]he changes include recognition of checks issued by an account owner before death and presented for payment after death . . . . Prefatory Note, Unif. Probate Code, 8 U.L.A. 426 (1998). Such a rule is a departure from common-law rules pertaining to gift and agency law providing that a drawee bank must honor a check before the donor's death. See Ronald R. Volkmer, Legislative Bill 250: The New Nonprobate Transfers Article of the Nebraska Probate Code, 27 Creighton L. Rev. 239 (1993). See, also, William M. McGovern, Jr., Nonprobate Transfers Under the Revised Uniform Probate Code, 55 Alb. L. Rev. 1329 (1992). [10] The plain language of § 30-2723(d) does not distinguish between checks intended as gifts, checks transferred in satisfaction of debts, or otherwise. Rather, the statute requires, without limitation, that unpaid checks written on a party's account before the party's death be paid by the beneficiary from the sums on deposit in the decedent's account. [11] Statutory language is to be given its plain and ordinary meaning, and an appellate court will not resort to interpretation to ascertain the meaning of statutory words which are plain, direct, and unambiguous. Tyson Fresh Meats v. State, ante p. 535, 704 N.W.2d 788 (2005). Here, the Legislature made a clear policy decision to enact statutory language that supplants any common-law rules regarding presentment of checks after the death of the drafter. Thus, although the parties focus their arguments on the question whether delivery of a gift by check is complete at the time the check is transferred or, alternatively, at the time the check is cashed or deposited, we conclude that regardless of whatever common-law rule would have been applicable, the gift was completed by operation of law upon Lamplaugh's death pursuant to § 30-2723(d). Pursuant to § 30-2723(d), the check given to Carter under the circumstances became irrevocable upon Lamplaugh's death, and the check remains payable by Lamplaugh's estate from the funds being held in the Bank. Such a result is consistent with the requirements for a valid giftthe donor's dominion and control of the funds represented by the check are surrendered upon the donor's death, and delivery is thereby completed. [12] We conclude that Lamplaugh's gift of $80,000 was complete upon his death and is payable pursuant to § 30-2723(d). Although, upon our independent review on this question of law, our reasoning differs from that of the county court, the court did not err in finding the check was payable. Where the record adequately demonstrates that the decision of the trial court is correct, although such correctness is based on a ground or reason different from that assigned by the trial court, an appellate court will affirm. Troshynski v. Nebraska State Bd. of Pub. Accountancy, ante p. 347, 701 N.W.2d 379 (2005).