Opinion ID: 1939198
Heading Depth: 1
Heading Rank: 6

Heading: did the chancellor erroneously remove kelly as administrator of the estate and render a judgment against him in the amount of estate funds for which he failed to satisfactorily account?

Text: The chancellor ordered Kelly to file an accounting and inventory on November 17, 1982, for the estate of Mrs. Windham pending the outcome of the trial, using as the point of beginning the figure shown on her federal estate tax return as the total gross estate, $1,818,208.12. Kelly was ordered to present accountings and inventories for the years 1978 through 1982, but none of them filed by Kelly have been ratified by the chancery court. Kelly contended that codicil no. 1 to Mrs. Windham's will waived any formal accounting by the executor. This codicil was challenged by the appellees and held void as the result of undue influence. The chancellor correctly exercised his discretion in requiring Kelly to file accountings and inventories during the pendency of the litigation in order to preserve and protect the assets of the estate. Kelly's contentions that he should be reinstated as executor and should not be held liable for unaccounted-for estate funds are based on the premise that the chancellor erroneously failed to find the existence of the 1965 agreement and misapplied the law of undue influence to the case. As noted in sections III and IV, we affirmed the chancellor on both issues. Mississippi Code Annotated § 91-7-277 (1972) requires that at least once a year every executor present under oath an account of his administration, showing the disbursements, every item of which and the amount thereof to be distinctly stated and supported by legal voucher, and it shall also show the receipts of money and from what sources. The failure to account annually shall be a breach of the administration bond for which the executor may be removed. In this case, Kelly filed several accountings and inventories, none of which were sufficiently specific to satisfy the chancellor. Mississippi Code Annotated § 91-7-253 (1972) provides that no executor or other fiduciary acting pursuant to the authority of any chancery court may borrow or use for his own benefit, directly or indirectly, any of the funds or property of the estate committed or entrusted to him by such court. Kelly has admitted that he has spent or lent large sums of funds taken from the Windham estate for which he is unable to account. Mississippi Code Annotated § 91-7-285 (1972) authorizes the chancellor to remove any executor who is derelict in the performance of any duty required of him by law or orders of the court. Kelly's misconduct and misappropriation of estate funds form a sufficient basis for the chancellor to remove him as executor of Mrs. Windham's estate. As a result of the inadequate accountings, a personal judgment was rendered against Kelly for $1,194,972.39. The chancellor was manifestly correct in holding Kelly personally liable for the misappropriation of such large sums of Mrs. Windham's estate funds.