Guardianship Of Cheryl Russell: Earl Russell v. Melanie Reynolds

Court of Appeals of Washington·Decided September 4, 2019·No. 51591-1·Unpublished

Opinion

Filed

Washington State

Court of Appeals

Division Two

September 4, 2019

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II

In the Matter of the Guardianship of: No. 51591-1-II

CHERYL RUSSELL, An Incapacitated Person. UNPUBLISHED OPINION

LEE, J. — Earl Russell appeals the superior court’s denial of his motion to revise a superior court commissioner’s order denying his motion for CR 60(b) relief from an order approving the guardian’s reports in his mother’s guardianship proceeding. Earl1 argues that the superior court abused its discretion in denying his motion to revise because his mother’s guardian never provided notice of the underlying proceeding that led to the entry of an order approving the guardian’s reports. He also challenges the superior court’s subject matter jurisdiction over his mother’s trust and two of the superior court’s findings of fact in its order on revision. We affirm.

FACTS

A. THE LIVING TRUST Cheryl Russell established a revocable living trust in 2008. The trust instrument named Cheryl as the trustee and provided Cheryl exclusive power during her lifetime to control and direct

1 Because multiple parties share the last name “Russell,” we refer to the parties by their first names for clarity. We mean no disrespect.

payments, remove trust property, and amend or revoke the trust. The trust also provided for the distribution of Cheryl’s remaining property to her children upon her death, including to her son Earl.

In 2011, Cheryl amended the trust and designated Earl as the successor trustee in the event of her disability. Under the terms of the trust, Cheryl shall be deemed disabled upon a court determination that she is incompetent, incapacitated, or otherwise unable to effectively manage her property or financial affairs. B. ORDER APPOINTING GUARDIAN In May 2016, Earl filed a petition for guardianship, wherein he alleged that Cheryl, who was 76 years old at the time, was exhibiting signs of dementia and was unable to manage her personal and financial affairs. Earl asked the superior court to appoint a guardian of Cheryl’s person and estate.

The superior court appointed a guardian ad litem (GAL) to meet with Cheryl and prepare a written report. Following an investigation, the GAL recommended that Cheryl be found incapacitated and that Anchor Guardianship Services, Inc. be appointed to serve as limited guardian of Cheryl’s person and full guardian of her estate.

Earl filed an objection to the GAL’s recommendation and asked the superior court to appoint him as guardian for his mother. The court denied this request and on September 2, appointed Anchor Guardianship to serve as full guardian of Cheryl’s estate and limited guardian of her person. In its order appointing Anchor Guardianship, the court entered a finding that “[t]here is a [L]iving Trust in place to manage most of Cheryl Russell’s financial assets. The trust shall

remain in place for the named trustee to manage assets pursuant to its terms and directions.” Clerk’s Papers (CP) at 116. The order also authorized the guardian:

To close any financial accounts, including bank accounts held individually or jointly with another, and to make withdrawals, deposits or transfer of funds into or out of any such accounts, without the necessity of obtaining the written authority of any other person named on any such joint accounts and opening guardianship accounts for the Incapacitated Person. The signature of the guardian of the estate holds the full force and effect of the signature of CHERYL RUSSELL with all the rights and authority and access to the asset as the signature of CHERYL RUSSELL would provide, whether the account is individually held by CHERYL RUSSELL or held jointly with another person;

....

. . . To convert all holdings, including but not limited to, savings accounts, money market accounts, IRAs, mutual funds, stocks, bonds, cash, automobiles, mobile homes, and any other personal property, including pension annuities, 401Ks and any other income, into the name of said guardian for the purposes of the guardianship.

CP at 119-20.

The superior court’s order identified the due date as December 1 for the guardian’s 90 day reports, which included the guardian’s initial personal care plan, inventory, and proposed budget. The order also listed January 6, 2017, as the next court date to review the 90 day reports. C. EARL’S REQUEST FOR SPECIAL NOTICE On September 26, 2016, Earl filed a request for special notice pursuant to RCW 11.92.150.2 In his request, Earl identified himself as “A relative of the Incapacitated Person.” CP at 85. He

2 RCW 11.92.150 allows any relative of the incapacitated person in a guardianship proceeding to submit a written request stating the specific action for which he or she request advance notice. If the applicant does not specify which matters for which notice is requested, the guardian or limited guardian “shall provide copies of all documents filed with the court and advance notice of his or her application for court approval of any action in the guardianship.” RCW 11.92.150.

asked for “special notice of all matters, steps, and proceeding described in RCW 11.92.150, including a copy of all documents filed with the Court and advance notice of any application for Court approval of any action in the guardianship.” CP at 85. D. ORDER APPROVING THE GUARDIAN’S 90 DAY REPORTS On December 2, Anchor Guardianship filed its 90 day reports. The inventory identified a $6,500 monthly trust fund allowance as part of Cheryl’s monthly income. The inventory also explained that Cheryl had created a revocable living trust and that Earl was the successor trustee due to Cheryl’s incapacity. The inventory stated that “Earl Russell, in his role as Trust Manager, will continue to provide funds from the Trust for IP’s use and benefit, as necessary.” CP at 52. The inventory also listed the current trust fund balance as approximately $2.5 million. These reports were not served on Earl at the time they were filed.

On December 21, Anchor Guardianship filed a docket notice for the January 6, 2017, hearing. The docket notice identified the nature of the January 6 hearing as “APPROVAL OF FIRST ANNUAL ACCOUNTING.” CP at 23. Anchor Guardianship also filed a petition for approval of its 90 day reports. The petition requested that Earl, as trustee of Cheryl’s trust, continue to pay $6,500 per month and to also “pay any expenses that exceed her monthly income” from the trust. CP at 38. Anchor Guardianship provided Earl a copy of the petition for approval of 90 day reports and the docket notice of the January 6 hearing.

A hearing on Anchor Guardianship’s petition for approval of its 90 day reports was held before the superior court on January 6, 2017. Earl did not attend the hearing. The court entered an order approving Anchor Guardianship’s 90 day reports (1/6/17 order). The 1/6/17 order

obligated Earl, as trustee of Cheryl’s trust, to pay a monthly sum of $6,500 to the guardianship and “any expenses that exceed the monthly income of [Cheryl].” CP at 10. Earl received a copy of the initial personal care plan and inventory on January 11. E. MOTION TO VACATE AND MOTION TO REVISE On May 12, Earl, in his capacity as trustee of Cheryl’s trust, filed an amended CR 60(b)

motion to vacate the January 1/6/17 order approving Anchor Guardianship’s 90 day reports. Earl acknowledged that he had received a copy of the Anchor Guardianship’s petition for approval of 90 day reports on December 23. However, Earl argued that relief from judgment was warranted under CR 60(b)(1) because Anchor Guardianship did not provide him with a copy of the initial personal care plan and inventory until after the January 6 hearing. The petition contained the following request:

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