Studt v. Black Hills Fed. Credit Union

Dorothy McLean invested in a certificate of deposit (CD) with Black Hills Federal Credit Union (BHFCU). McLean subsequently changed the CD’s payable-on-death beneficiary from Ronald Studt, her son, to David Sholes, her second cousin. Thereafter, McLean executed a general, durable power of attorney naming Studt as her attorney-in-fact. Studt then sent an email to BHFCU requesting the beneficiary on the CD to be changed to him. After McLean died, Studt filed a declaratory judgment action against BHFCU and Sholes to determine the rightful beneficiary of the CD. During a hearing, Studt argued that the language of the power of attorney granted him broad powers to make gifts to himself. BHFCU and Sholes argued, in the contrary, that the power of attorney did not grant Studt the power to self-deal. The circuit court found that the language in the power of attorney was too broad and general and did not specifically authorize self-dealing. The Supreme Court affirmed, holding that the circuit court did not err when it found that the power of attorney did not permit Studt to engage in self-dealing. View "Studt v. Black Hills Fed. Credit Union" on Justia Law