In re Estate of Lovell

Phillip Lovell executed a power of attorney in 1997 naming his son, Charles Lovell (defendant), as his agent. The power of attorney gave Charles the power to lease or sell Phillip’s real property but did not explicitly authorize gifts. Phillip and his wife, Zada Lovell, owned a farm in Vermont (the farm). In May 2003, Zada quitclaimed her interest in the farm to Phillip. The next day, Charles exercised his power of attorney to gift the farm to himself via quitclaim deed. Phillip’s other children, including Duane Amsden (plaintiff), signed a consent statement agreeing that Charles gifting the farm to himself was in Zada’s and Phillip’s best interests during their lifetimes but that the family would later decide how to ultimately distribute the farm. Phillip died in June 2003. Zada died in June 2008. From May 2003 to June 2008, Charles paid the farm’s property taxes and paid for improvements. Five months after Zada’s death, Amsden petitioned for a declaratory judgment that Charles gifting the farm to himself was invalid because it exceeded the scope of his powers under the 1997 power of attorney. Charles countered, arguing that (1) the language in the power of attorney was broad enough to authorize him to make gifts of Phillip’s property; and (2) Amsden’s claim was barred by laches because the gift was made five years ago and Charles had expended significant funds maintaining and upgrading the farm since then. The probate court held that (1) laches was inapplicable and (2) the gift of the farm to Charles was valid because the power of attorney did not prohibit Charles from gifting Phillip’s property. The superior court reversed on appeal, holding that an agent could not make gifts unless specifically authorized by the power of attorney. Charles appealed.