De Paul v. Irwin

56 Cal. App. 4th 235, 65 Cal. Rptr. 2d 307, 97 Daily Journal DAR 8709, 97 Cal. Daily Op. Serv. 5417, 1997 Cal. App. LEXIS 542
CourtCalifornia Court of Appeal
DecidedJuly 7, 1997
DocketNo. B099006
StatusPublished

This text of 56 Cal. App. 4th 235 (De Paul v. Irwin) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
De Paul v. Irwin, 56 Cal. App. 4th 235, 65 Cal. Rptr. 2d 307, 97 Daily Journal DAR 8709, 97 Cal. Daily Op. Serv. 5417, 1997 Cal. App. LEXIS 542 (Cal. Ct. App. 1997).

Opinion

Opinion

MASTERSON, J.

In 1982, Evelyn I. Anderson executed a will that exercised a testamentary power of appointment over a portion of a trust [238]*238created by her deceased husband. In 1993, Anderson executed a second will that expressly revoked all prior wills and that inadvertently failed to exercise the power of appointment.

After Anderson died in 1995, the executor of her estate petitioned the trial court to admit to probate the 1993 will and that portion of the 1982 will exercising the power of appointment. One of Anderson’s stepgrandchildren initiated a will contest and objected to the admission of any portion of the 1982 will.

After conducting an evidentiary hearing, the trial court found that Anderson intended to exercise the power of appointment and that the 1993 will did not revoke the provision in the 1982 will exercising that power. Applying the doctrine of dependent relative revocation, the trial court admitted to probate the 1993 will and the portion of the 1982 will exercising the power of appointment.

The contestant challenges the trial court’s order to the extent it admits to probate the provision in the 1982 will. We affirm.

Background

In 1948, Anderson married Wilbur R. Irwin (Irwin). For both, it was their second marriage. Irwin had five sons from his first marriage. Anderson had one daughter from her first marriage, Carole De Paul (De Paul), whom Irwin adopted.

Irwin died in 1963. His will created a trust which paid all of its income to Anderson during her life and gave her a testamentary general power of appointment over 50 percent of the trust assets. The will expressly required that Anderson exercise the power of appointment by specific reference in her own will. Irwin’s will further provided that if Anderson did not exercise the power of appointment, her 50 percent share of the trust assets would be divided equally among Irwin’s living issue by right of representation. (See Prob. Code, § 246.)

In 1982, while residing in Omaha, Nebraska, Anderson executed a will. She left various items of personal property to her husband (E.L. Anderson), daughter (De Paul), and a niece. The will also made monetary gifts in specified amounts to Anderson’s brother, sisters, nieces, and nephew, and established a trust for her two grandchildren (i.e., De Paul’s children). Article eighth of the will stated: “All of the rest, residue, and remainder of my estate, real, personal and mixed, of whatsoever kind and wheresoever [239]*239situated, including specifically that portion of the trust estate over which I possess a power of appointment which was created in and by the Last Will and Testament of my former husband, Wilbur Riseby Irwin, Deceased, ... I devise to (and I hereby exercise said power of appointment in favor of) my daughter, Carole Irwin DePaul . . . -”1

In 1993, after moving to Pasadena, California, Anderson retained a local law firm to rework her estate plan. On May 4, 1993, Anderson met with a partner of the firm who was a trust and estate lawyer and gave him a copy of her 1982 will. Anderson instructed the partner to use the 1982 will as a model and to carry forward its provisions into the new estate planning documents except as she directed otherwise. Anderson requested that the partner convert her existing estate plan from a will into a living trust with a pour-over will. She also indicated that she wanted to make a gift of $1,000 to each grandchild of her former husband (Irwin). The partner valued Anderson’s assets to be worth approximately $1.3 million, including $500,000 that he attributed to her 50 percent share of the Irwin trust.

During the meeting, the partner took two pages of notes on the changes Anderson wished to make in her estate plan. He also made handwritten comments on his copy of the 1982 will. The notes mentioned the creation of a living trust with a pour-over will and a $1,000 bequest to each of Irwin’s grandchildren. The notes also stated, “see will for other changes.” The partner’s comments on the 1982 will indicated, among other things, that Anderson’s third husband (E.L. Anderson) and one of her sisters had died. The partner did not make any comments on the will about article eighth. He testified that the lack of notations beside a particular article meant that Anderson “instructed me to leave the documents as is.”2 Anderson did not specifically refer to article eighth or to the power of appointment in telling the partner what to include in the new documents. Nor did she ever tell the partner that she wanted to revoke the exercise of the power of appointment.

After the meeting, the partner gave his notes and the annotated copy of the 1982 will to an associate attorney at the firm and asked her to draft the new estate planning documents. The partner told the associate that Anderson’s 1982 will would be the basis for the new documents and that, other than the changes mentioned in his notes and on the copy of the will, the basic plan was to remain intact. The partner did not give the associate any specific [240]*240instructions about the power of appointment—whether to exercise it or mention it.

The associate drafted several estate planning documents for Anderson, including a new will, a trust, and two durable powers of attorney. The will appointed De Paul as the executor and stated that Anderson “revoke[d] all former Wills.” None of the new documents exercised Anderson’s power of appointment over her portion of the Irwin trust, nor did they specifically refer to the power of appointment.

In May 1993, the partner sent draft copies of the new estate planning documents to Anderson for review. In response, Anderson asked that her son-in-law be removed as the alternate attorney-in-fact on the durable powers of attorney.

On June 24, 1993, Anderson reviewed the final version of the new documents at the law firm. None of the documents exercised Anderson’s power of appointment with respect to the Irwin trust. In the presence of the partner and the associate, Anderson signed the documents. The two lawyers then signed an attestation clause at the end of the will.

On August 18,1994, Anderson wrote a letter to the First National Bank of Omaha, the trustee of the Irwin trust, seeking answers to questions about the operation of the trust. The bank responded by letter dated August 23, 1994, stating in part: “At the time of your death, you can control where 50 percent of the assets in this trust are to be distributed by specifying in your Last Will and Testament. The other 50 percent of the assets are to be transferred to the children of Wilbur Irwin. [<][] Because you have a ‘general power of appointment’ over 50 percent of the assets we hold in trust, those assets are subject to Federal Estate Taxes. . . .”

In September 1994, Anderson met again with the partner at the law firm to discuss her estate plan. They discussed the bank’s letter but did not talk about whether Anderson’s new will exercised her power of appointment over the Irwin trust. The partner recommended that Anderson consider amending her own trust to place a portion of the trust assets into a generation-skipping trust. Anderson agreed and executed an amendment to that effect in December 1994.3 Throughout the discussions about amending Anderson’s trust, the partner assumed that Anderson had exercised her power of appointment over the Irwin trust in favor of De Paul, i.e., that De Paul would receive

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Bluebook (online)
56 Cal. App. 4th 235, 65 Cal. Rptr. 2d 307, 97 Daily Journal DAR 8709, 97 Cal. Daily Op. Serv. 5417, 1997 Cal. App. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-paul-v-irwin-calctapp-1997.