In the Matter of the Estate of Dorothy Johnson

This appeal stemmed from a Chancery Court judgment setting aside inter vivos gifts made by Sheila West. Acting through a durable power of attorney granted by her mother, Dorothy Johnson, Sheila West removed her brother’s, niece’s, and nephew’s names from certificates of deposit originally created by Dorothy Johnson, and replaced them with her own name and the names of her two daughters. Sheila’s brother, Ron Johnson, petitioned the chancery court to set aside these amendments as an improper transfer of an inter vivos gift. Following a trial on the matter, the chancellor found that Sheila did not overcome a presumption of undue influence in making what amounted to inter vivos gifts and thereby reverted ownership of the CDs to their original form. THe Mississippi Supreme Court found that because Dorothy Johnson retained an ownership interest in all of the CDs at issue, neither the original conveyance nor Sheila’s subsequent transfers could be considered inter vivos gifts. Therefore, the chancellor erred in his analysis of the issue. Also at issue in this matter was whether Sheila West engaged in self-dealing under the durable power of attorney granted to her by Dorothy Johnson. Finding that Sheila failed to overcome the burden of undue influence created by the confidential relationship between herself and Dorothy, the Supreme Court affirmed the chancellor’s decision to revert the CDs to their status prior to Sheila’s 2010 amendments. View "In the Matter of the Estate of Dorothy Johnson" on Justia Law