Estate of O'Connor v. O'Connor

237 Cal. Rptr. 3d 519, 26 Cal. App. 5th 871
CourtCalifornia Court of Appeal, 5th District
DecidedAugust 29, 2018
DocketD071284
StatusPublished
Cited by13 cases

This text of 237 Cal. Rptr. 3d 519 (Estate of O'Connor v. O'Connor) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of O'Connor v. O'Connor, 237 Cal. Rptr. 3d 519, 26 Cal. App. 5th 871 (Cal. Ct. App. 2018).

Opinion

O'ROURKE, Acting P. J.

Appellants Brian O'Connor and Astrid O'Connor Bassett appeal from orders (1) declaring that decedent John O'Connor's power of appointment exercised in his will complied with the requirements of Probate Code 1 section 632 and (2) for probate of his will. The sole question for our independent review arising out of both appeals is whether the language in the decedent's will-"I exercise any Power of Appointment which I may have over that portion of the trust or trusts established by my parents for my benefit or any other trusts for which I have Power of Appointment"-constitutes a valid and effective exercise under section 632, which requires, if directed by the instrument granting the power, that the exercise include "a specific reference to the power [of appointment] or to the instrument that created the power ...." We conclude the language of decedent's will contains enough detail to discern his conscious exercise of the particular power of appointment granted to him, and thus complied with the requirements of both the granting instrument and section 632 that he make a specific reference to the power of appointment. Accordingly, we affirm the orders.

FACTUAL AND PROCEDURAL BACKGROUND

We take much of the underlying facts from the referee's statement of decision, which was incorporated into the probate court's order. ( Mountain Air Enterprises, LLC v. Sundowner Towers, LLC (2017) 3 Cal.5th 744, 748, 220 Cal.Rptr.3d 650, 398 P.3d 556.) We disregard factual assertions by the parties that are not supported by references to the record. ( McOwen v. Grossman (2007) 153 Cal.App.4th 937, 947, 63 Cal.Rptr.3d 615 ["Statements of fact that are not supported by references to the record are disregarded by the reviewing court"].)

Arthur O'Connor and Hildis O'Connor were the parents of Brian O'Connor, Astrid O'Connor Bassett, John O'Connor, Kevin O'Connor and Eric O'Connor.2 In 1979, Arthur and Hildis O'Connor created the Arthur P. O'Connor and Hildis M. O'Connor Family Trust (the Trust), which was amended and restated in August 1984 (the 1984 amendment), and again in April 1989 (the 1989 amendment). The primary asset of the Trust was an interest in a limited partnership that owns an apartment complex in San Diego. The Trust contemplated creation of a survivor's trust, a marital deduction trust, and an insurance *523trust upon the death of either parent, who were then the Trust's co-trustees.

The 1989 amendment allocated equal shares of the Trust estate to each living child, then directed that they be held and administered in one trust for Brian, Astrid and Kevin, and a separate trust for John, as to which the trustee would pay $1,000 per month for John's benefit. It designated Brian, Astrid and Kevin as successor co-trustees of the Trust. The 1989 amendment also granted John a power of appointment as follows: "Upon the death of JOHN N. O'CONNOR, the principal and undistributed net income of his trust shall be distributed to such of his issue, the issue of the Trustors, or the creditors of his estate, either outright or in trust, as he shall appoint by a will specifically referring to and exercising this general testamentary power of appointment."3

Upon Hildis's death in 1992, the Trust by its terms divided into the marital deduction subtrust (Hildis's subtrust) and a survivor's subtrust (Arthur's subtrust). Arthur also created the insurance trust holding his life insurance policies, the proceeds of which would be managed and distributed for John's benefit. At the same time, Arthur prepared a second amendment to his subtrust giving the trustees discretion to distribute (or not distribute) net income for John's health, maintenance, support, welfare and comfort, and removing the provision giving John a power of appointment over his interest in that subtrust. Thus, under Hildis's subtrust, the trustees were required to make lifetime payments of $1,000 per month for John's benefit and John had a power of appointment. Under Arthur's subtrust, the trustees had discretion to pay income and principal as they deemed appropriate, but John no longer had a power of appointment. John's total interest in the subtrusts included a 12.25 percent share in the apartment complex limited partnership.

John died in November 2014. He had no children and was survived only by his wife. On November 12, 2014, approximately two weeks before his death, he signed a will bequeathing his entire estate to his wife and appointing Kevin as his agent. John's will provides: "I exercise any Power of Appointment which I may have over that portion of the trust or trusts established by my parents for my benefit or any other trusts for which I have Power of Appointment I exercise [sic ] in favor of my brother Kevin O'Connor. If possible, I request it be distributed to him outright, or if not possible, that he receive all income and have a maximum power of invasion for his health, comfort and welfare."

In early 2015, Kevin petitioned to probate John's will and sought to be appointed executor of John's estate. Kevin's petition sought to establish the validity of both the will and the power of appointment expressed in it. Brian and Astrid objected and filed a will contest, in part seeking to invalidate the power of appointment as not complying with section 632. They argued that the will's language referring to "any Power of Appointment which I may have" was only a general reference and thus invalid.

Thereafter, Kevin petitioned to reform John's will to conform to his intent to exercise the power of appointment granted *524to him by the Trust. Kevin asked that the will be amended to refer to John's power of appointment under the Trust with sufficient specificity so that his testamentary intent would be carried out as he expected.

The parties stipulated to having a judicial referee hear the power of appointment matters, and the issues were tried over the course of four days in 2015 and 2016. Thereafter, the referee issued a statement of decision ruling that the reference in John's will met the conditions established by the Hildis subtrust and the requirements of section 632. In part, it found: "John's Will specifically described the power he was attempting to exercise as 'any Power of Appointment which I may have over that portion of the trust or trusts established by my parents for my benefit or any other trusts for which I have Power of Appointment ....' There was not a scintilla of evidence provided in the [h]earing that would suggest there was any confusion in John's mind as to the precise power he was exercising and the precise document in which the power was created. There was only one trust (consisting of two sub-trusts) and only one power of appointment that could meet the description contained in John's Will.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Haacke v. Shea CA4/2
California Court of Appeal, 2025
Doan v. Tran CA5
California Court of Appeal, 2025
Richardson Investments v. Hajj CA4/2
California Court of Appeal, 2023
White v. Davis
California Court of Appeal, 2023
Fisher v. Fisher CA4/1
California Court of Appeal, 2022
White v. Wear
California Court of Appeal, 2022
Conservatorship and Estate of Hugh F. CA4/2
California Court of Appeal, 2022
Riverside County Public Guardian v. Snukst
California Court of Appeal, 2022
Estate of Stafford CA2/7
California Court of Appeal, 2020
Tedesco v. Wells Fargo Bank, N.A. CA4/2
California Court of Appeal, 2020
Estate of Eimers
California Court of Appeal, 2020
Tubbs v. Berkowitz
California Court of Appeal, 2020

Cite This Page — Counsel Stack

Bluebook (online)
237 Cal. Rptr. 3d 519, 26 Cal. App. 5th 871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-oconnor-v-oconnor-calctapp5d-2018.