Goulding v. Bank of America, N.A.

340 S.W.3d 114, 2010 Mo. App. LEXIS 1601, 2010 WL 4823230
CourtMissouri Court of Appeals
DecidedNovember 30, 2010
DocketWD 71446
StatusPublished
Cited by3 cases

This text of 340 S.W.3d 114 (Goulding v. Bank of America, N.A.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Goulding v. Bank of America, N.A., 340 S.W.3d 114, 2010 Mo. App. LEXIS 1601, 2010 WL 4823230 (Mo. Ct. App. 2010).

Opinion

LISA WHITE HARDWICK, Chief Judge.

John P. Goulding, Jr. (“John Jr.”) appeals the summary judgment ruling that, as a matter of law, Bank of America, N.A. as Trustee (“Trustee” or “Bank”), had correctly distributed Trust income from the Trust of his great aunt, Margaret P. Galbraith. For reasons explained herein, we affirm the summary judgment.

Factual and Procedural History

Margaret P. Galbraith was the Settlor of a Trust Agreement dated July 8, 1946, as amended by modifications dated August 15,1958 and September 26,1961, the latter having no relevance to this appeal. The Bank has served as Trustee since the Trust’s creation in 1946.

As modified in 1958, the Trust Agreement set forth a list of income beneficiaries, their relationship to Settlor and the *116 share of income each was to receive from the Trust:

To my mother, EMMA FLANAGAN, 17% of such net income.
To my sister, MARY GOULDING, 17% of such net income.
To my nephew, JOHN P. GOULDING [SR.], 17% of such net income.
To my cousin, MINNIE SCULLY, 17% of such net income.
To ISABEL GOULDING, wife of said John P. Goulding [Sr.], 8½% of such net income.
To PATRICK J. GOULDING and JOHN P. GOULDING [JR.] (children of John P. Goulding [Sr.] and Isabel Gould-ing) 3⅜% each of said net income....

The Trust Agreement also contained a provision that directed 17% of the Trust’s net income at her death “to the lawful issue of John P. Goulding [Sr.] who shall be living at the time of each monthly distribution.” (“17% provision”)

Upon the deaths of named beneficiaries, Settlor provided three specific directions for the postmortem distribution of their shares as follows:

[1] Upon the death of Emma Flanagan, the share of income theretofore payable to her shall accrue in equal parts to Mary Goulding, John P. Goulding [Sr.], and Minnie Scully, or to the survivors of them at the time of her death. [2] Upon the death of Mary Goulding, her former share of income shall accrue to John P. Goulding [Sr.], or to his lawful surviving issue in the event of his prior death. [3] Upon the death of the other named income beneficiaries their respective former shares shall accrue per stirpes to the lawful issue of said John P. Goulding [Sr.].

The named beneficiaries died on the following dates:

Emma — September 9,1960
Settlor — September 3,1963
Minnie — January 1973
John Sr. — April 5,1974
Patrick — September 21,1982
Mary — April 19,1984
Isabel — October 12,1996

The distribution of income after Settlor’s death occurred as follows. Emma predeceased Settlor. Under the terms of the Trust, her share of 17% accrued in equal parts to Mary, John Sr. and Minnie as specifically named beneficiaries. The Trust net income was distributed as follows:

Minnie — 22.67%
John Sr. — 22.67%
Mary — 22.67%
Isabel — 8.5%
Patrick — 11.75% (which includes half of the 17% provision)
John Jr. — 11.75% (which includes half of the 17% provision)

Minnie died in January 1973. Under the terms of the Trust, she was an “other named beneficiary” whose former share accrued not to specifically named beneficiaries, but instead “per stirpes to the lawful issue of John Sr.” John Jr. and Patrick were the “lawful issue” of John Sr. at the time of Minnie’s death. Following Minnie’s death, the Trustee began distributing her 22.67% share to Patrick and John Jr. as follows:

John Sr. — 22.67%
Mary — 22.67%
Isabel — 8.5%
Patrick — 23.085%
John Jr. — 23.085%

John Sr. died on April 5, 1974. Under the terms of the Trust, he was an “other named beneficiary” whose former share accrued not to specifically named beneficiaries, but instead per stirpes to his lawful *117 issue. Patrick and John Jr. were the “lawful issue” of John Sr. at the time of John Sr.’s death. Thus, as with Minnie’s share, the Trustee began distributing his 22.67% share to Patrick and John Jr. as follows: Mary — 22.66%

Isabel — 8.5%
Patrick — 34.42%
John Jr. — 34.42%

To this point, distribution of the Trust income is not in dispute. However, following Patrick’s death, John Jr. claims distributions were not made according to the plain language of the Trust. Patrick died on September 21, 1982. Under the terms of the Trust, Patrick was an “other named beneficiary” whose former share accrued per stirpes to the lawful issue of John Sr. The Trustee distributed Patrick’s entire 34.42% share to his children, John Michael Goulding, Patrick Goulding, Jr., and Kimberly Goulding McMahon. (“Patrick’s Children” or “Patrick’s lawful issue”). Patrick’s Children’s status as the lawful issue of Patrick, and thus of John Sr. in Patrick’s stead under the Trust, had previously been determined in Traders Bank of Kansas City v. Goulding, 711 S.W.2d 872, 874-75 (Mo. banc 1986) (only Patrick’s legitimate children qualified as John Sr.’s issue under the Trust). As a result, the Trustee began distributing the Trust income following Patrick’s death as follows: Mary — 22.66%

Isabel — 8.5%
John Jr. — 34.42%
Patrick’s Children — 34.42%

Mary died on April 19,1984. Under the terms of the Trust, her former share of income “acerue[d] to John Sr., or his lawful surviving issue in the event of his prior death.” The Trustee distributed the 22.66% share of income Mary was receiving, half to John Jr. and half to Patrick’s Children.

Isabel died on October 12, 1996. As an “other named beneficiary” her former shares accrued per stirpes to John Sr.’s lawful issue. The Trustee distributed the 8.5% share of income Isabel was receiving, half to John Jr. and half to Patrick’s Children.

In 2005, John Jr. filed a breach of trust action alleging that subsequent to Patrick’s death, the Trustee had failed to distribute the Trust income in accordance with its express terms. Specifically, he claimed that as one of the lawful issue of his father John Sr.

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Cite This Page — Counsel Stack

Bluebook (online)
340 S.W.3d 114, 2010 Mo. App. LEXIS 1601, 2010 WL 4823230, Counsel Stack Legal Research, https://law.counselstack.com/opinion/goulding-v-bank-of-america-na-moctapp-2010.