University of Southern Indiana Foundation v. Baker

Marian Boelson created a trust that included several specific grants of property upon Boelson’s death. Boelson’s brother, Richard Baker (plaintiff) was granted Boelson’s Individual Retirement Accounts (IRAs) as well as all of her automobiles, furnishings, and other personal property. Boelson’s friend, Faye Rucks, was granted $10,000, subordinate to the payment of the trust’s administrative expenses. The trust granted the residue of Boelson’s estate to the University of Southern Indiana Foundation (the foundation) (defendant). At her death, Boelson owned a condominium containing furniture and personal effects, a one-acre lot, an automobile, bank accounts, two IRAs, and other investments. Baker argued that he was entitled to all of Boelson’s personal property, including her bank accounts and investments, and that the foundation was entitled only to Boelson’s real estate. The foundation argued that Baker was entitled only to Boelson’s IRAs, her automobile, and the furniture and personal effects contained in her condominium. The foundation further argued that it was entitled to all of Boelson’s other real and personal property, including her bank accounts and investments. In support of its argument, the foundation submitted extrinsic evidence, including witness affidavits and notes written by Boelson. All of the extrinsic evidence supported the foundation’s argument that Boelson intended to grant Baker only her IRAs, automobile, and personal effects. The probate court agreed with the foundation that, based on the extrinsic evidence, Boelson intended to limit Baker’s inheritance. However, the probate court also found that the language of the trust unambiguously devised all of Boelson’s personal property to Baker, preventing the court from giving effect to Boelson’s intent. The court therefore ruled that Baker was entitled to all of Boelson’s tangible and intangible personal property and the foundation was entitled only to Boelson’s real property. The court of appeals affirmed, and the foundation appealed.