Elliott Williams died on October 27, 2011, following injuries sustained while in custody at the Tulsa County Jail. A wrongful death lawsuit was filed on behalf of his estate. His parents, Katha and Earl Williams, were statutory beneficiaries entitled to share in the proceeds. On May 28, 2014, Katha and Earl created the Williams Family Trust and executed pour-over wills, transferring their expected share of any proceeds from the wrongful death case into the trust. Both parents later passed away before the lawsuit concluded.
The wrongful death case resulted in a jury verdict in 2017, awarding $10 million in compensatory damages and $250,000 in punitive damages. The Tenth Circuit Court of Appeals later affirmed most of the judgment, and the parties reached a $10 million settlement plus post-judgment interest. During this period, Katha’s probate was filed in 2017, and Earl’s probate was filed in 2019.
In 2020, Kimberly Hamilton, as trustee of the Williams Family Trust, sought a determination that Katha’s share of the wrongful death proceeds belonged to the trust. Catherine Welsh, as representative of Earl’s estate, opposed the motion, arguing that wrongful death proceeds could not be transferred into a trust before being obtained by the settlor.
The Tulsa County District Court ruled that the proceeds were not property of Katha’s probate estate and instead belonged to the Williams Family Trust pursuant to the assignment executed in 2014. The court allocated $1,178,057.44 of proceeds to the trust. Welsh appealed.
The Oklahoma Court of Civil Appeals affirmed the trial court’s decision. Welsh then petitioned for certiorari review by the Oklahoma Supreme Court.
The Oklahoma Supreme Court considered whether proceeds from a wrongful death cause could be transferred into a trust before being obtained by the settlor. It held that they could. The Court reasoned that while wrongful death actions are statutory and cannot be assigned to another person, beneficiaries’ interests in proceeds vest upon the death of the decedent. Those interests are akin to property rights and may be transferred into a trust for estate planning purposes.
The Court emphasized that Katha and Earl’s intent was clear: their wills, trust, and assignment documents expressed that any proceeds from Elliott’s wrongful death case were to be placed in the trust. The Court concluded that nothing in Oklahoma law prohibited such a transfer, and prohibiting it would conflict with the purpose of estate planning trusts.
The Oklahoma Supreme Court vacated the Court of Civil Appeals’ opinion and affirmed the trial court’s ruling. It held that proceeds from a wrongful death cause can be transferred into a trust before they are obtained by the settlor, and if transferred, they belong to the trust.
If you need guidance with trusts, wills, or probate matters, Whitcomb, Selinsky PC assists with estate planning. Contact us to learn how our team can help protect your legacy.