In re Estate of Dan McAnally

Court of Appeals of Washington·Decided May 3, 2018·No. 35054-1·Unpublished

Opinion

FILED

MAY 3, 2018

In the Office of the Clerk of Court WA State Court of Appeals, Division III

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION THREE

In the Matter of the Estate of ) No. 35054-1-III )

DAN MCANALLY, )

) UNPUBLISHED OPINION Deceased. )

)

LAWRENCE-BERREY, C.J. — Will and trust beneficiary Darrell Riste appeals after a court commissioner denied his petition that sought various forms of relief. At issue here is whether the court commissioner erred when it denied his petition to remove Baker Boyer Bank as personal representative of the Estate of Dan McAnally. We determine that the court commissioner’s findings of fact are supported by substantial evidence and that its legal conclusions are correct. We therefore affirm the court commissioner.

FACTS

Mr. McAnally died testate on September 22, 2012. His estate consisted of a personal residence, tangible personal property, bank accounts, and—the major subject of this appeal—commercial property in Selah, Washington, known as the Viking Village Shopping Center.

No. 35054-1-III Estate of McAnally

On September 25, 2012, Baker Boyer Bank successfully petitioned Yakima County Superior Court to admit the will to probate and confirm the bank as personal representative (PR) with nonintervention powers. Baker Boyer Bank provided notice as required by law. No party contested the terms or validity of the will.

Mr. McAnally’s will contained certain specific bequests in favor of Darrell Riste and Fred Wickholm. The will also directed the PR to pay from the residue of the estate all costs and taxes payable because of Mr. McAnally’s death. The will directed that the remaining residue go to a testamentary trust, referred to as the Riste Trust, for the initial benefit of Mr. Riste.

As for the specific bequests, the will bequeathed Mr. McAnally’s residence, all of his tangible personal property, and 30 percent of his bank accounts and deposits to Mr. Riste. The will bequeathed another 30 percent of his bank accounts and deposits to Mr. Wickholm. The PR fulfilled all of these specific bequests.

The will appointed Baker Boyer Bank as trustee of the Riste Trust. A testamentary trust provision directed the trustee to pay net income of the trust to Mr. Riste in installments, preferably monthly but at least quarterly. Another provision directed the trustee to invest assets of the trust in a manner that would provide maximum income rather than investing in growth. Several of Mr. Riste’s family members were

No. 35054-1-III Estate of McAnally

beneficiaries of the trust upon Mr. Riste’s death, concluding with the final trust balance being distributed to the University of Denver.

Various communications On February 7, 2014, Mr. Riste requested from Baker Boyer Bank, in its capacity as PR, a copy of the inventory and appraisement of the estate and an annual report. Mr. Riste also requested from Baker Boyer Bank, as trustee of the Riste Trust, an itemization of all trust property and an itemization of all receipts and disbursements. Mr. Riste also requested several other documents related to assets and tax liability. The communications show that the lack of information and delay was frustrating Mr. Riste.

Although not at issue in this appeal, a question arose concerning the amount of the pecuniary bequests to Mr. Wickholm and Mr. Riste, and counsel for each filed a notice of appearance. In April and May 2014, both acknowledged their receipt of their full distributive shares of the estate. Mr. Wickholm’s counsel withdrew, but Mr. Riste’s counsel did not.

The estate made an estate tax payment of $48,787.00, but later received a refund of $46,171.23, which included interest.

No. 35054-1-III Estate of McAnally

Viking Village appraisal and sale An appraiser valued Viking Village at $1,700,000 at the time of Mr. McAnally’s death. The PR sought to sell Viking Village and received an offer of $1,451,000, subject to an environmental assessment. Mr. Riste, with knowledge of the offer, demanded that the PR not sell Viking Village. The PR listed several concerns it had of the risks associated with keeping Viking Village as a trust asset. Despite having full nonintervention powers, and despite Mr. Riste having already acknowledged receipt of his full distributive share of the estate, on June 5, 2014, the PR petitioned the court to approve the conditional sale for $1,451,000. The PR noted that the relationship between itself and Mr. Riste had become “sufficiently contentious,” that Mr. Riste had resisted signing his full distributive share receipt, that RCW 11.100.140(8) authorized the sale without intervention, but that caution dictated having the court approve the sale. Clerk’s Papers (CP) at 226-27.

The court held a hearing on July 8, 2014, and, while counsel for Mr. Riste attended, he did not object to the sale. On that same date in 2014, the court authorized the sale of the Viking Village property.

Fulcrum Environmental Consulting performed the environmental assessment. The assessment disclosed that the property had severe soil contamination. The potential buyer

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withdrew from the conditional purchase. A new appraisal was performed, and the property’s value was estimated to be $1,100,000 as of January 15, 2014. A new buyer made an offer of $1,100,000 for Viking Village. The PR informed Mr. Riste of the new offer. The PR also informed Mr. Riste that although it did not need to go back to court and obtain his consent to the sale, the buyer wished to have Mr. Riste’s approval. On March 20, 2015, Mr. Riste authorized the PR to sell the property at $1,100,000.

Two years later For two years after the July 8, 2014 order authorizing the conditional sale, no party filed any pleadings in the matter. On September 6, 2016, a new attorney appeared as counsel of record for Mr. Riste. Shortly after, Mr. Riste filed a petition concerning several matters: a request to recuse the judge who had approved the conditional sale of Viking Village, a request to remove Baker Boyer Bank as PR for conflicts of interest and breaches of fiduciary duties, a request for an order requiring the PR to file an accounting, a request for denial of fiduciary and attorney fees, and a request for an order freezing the assets of the estate. The filing alleged multiple problems including dishonesty, the use of estate funds to pay taxes and costs of administration, lack of communication about estate assets, and the sale of the Viking Village property.

No. 35054-1-III Estate of McAnally

Mr. Riste filed an affidavit in support of his petition, as well as e-mails detailing the above-mentioned lack of communication. The affidavit makes several allegations, including but not limited to: the estate had not paid him his full distributive share, the trust had not been making quarterly payments, tax fraud in payment of estate taxes, false filings from Baker Boyer Bank, and the estate had erroneously paid a creditor’s claim of $14,000 to Mr. Wickholm. Mr. Riste also threatened to file a separate civil action under a lengthy list of theories against various entities and individuals.

Two days later, on September 8, 2016, the PR filed a notice and declaration of completion of probate. Mr. Riste filed an objection to the PR’s requested fees and completion of probate. On November 10, 2016, the PR filed a response arguing two reasons why Mr. Riste did not have standing to bring his petition. The PR argued that Mr. Riste, years earlier, had acknowledged receipt of his full distributive share of the estate. The PR also argued that the trust was not a party to the probate matter.

In addition, the PR responded to what it considered to be erroneous factual statements by Mr. Riste. For instance, the PR provided an accounting that showed that the estate had not made a payment of $14,000 to Mr. Wickholm.

No. 35054-1-III Estate of McAnally

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