In Re Guardianship of McKean

151 P.3d 223, 136 Wash. App. 906
CourtCourt of Appeals of Washington
DecidedJanuary 30, 2007
Docket34132-8-II, 34542-1-II
StatusPublished
Cited by16 cases

This text of 151 P.3d 223 (In Re Guardianship of McKean) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Guardianship of McKean, 151 P.3d 223, 136 Wash. App. 906 (Wash. Ct. App. 2007).

Opinion

151 P.3d 223 (2007)

In re the GUARDIANSHIP OF Michelle McKEAN and Morgan McKean, Minors.

Nos. 34132-8-II, 34542-1-II.

Court of Appeals of Washington, Division 2.

January 30, 2007.

*224 John Patrick O'Connor, Tacoma, WA, for Appellant.

John Herman Hertog, Jr., Richard L. Furman Jr., Corey Thomas Denevan, Hertog & Coster PLLC, Seattle, WA, Robin H. Balsam, Balsam McNallen LLP, Tacoma, WA, for Respondent.

Charles M. Granoski Jr., Betzendorfer & Granoski, Tacoma, John Herman Hertog, Jr., Hertog & Coster PLLC, Seattle, WA, for Guardian Ad Litem.

ARMSTRONG, J.

¶ 1 Michael McKean, on behalf of his daughters Morgan and Michelle McKean, appeals the trial court's orders and judgment directing his daughters' estates to pay fees and costs that the guardian and its attorneys incurred in identifying, verifying, and marshaling the girls' trust and non-trust assets. Specifically, he argues that the trial court breached its duty to protect Morgan's and Michelle's estates when it authorized the guardian to use most of Morgan's and Michelle's non-trust guardianship assets to pay the fees and costs. In addition, Michael argues that the trial court erred in assessing a portion of the fees and costs against him. We agree with Michael that the court erred in its method of apportioning fees between the guardianship and him. Accordingly, we vacate the fees and costs award and remand to the trial court for further consideration of how it should apportion fees and costs.

FACTS

¶ 2 Michael McKean is single and has two daughters, Morgan, age 10, and Michelle, age 17. Connie (Hodges) McKean is Morgan's mother; Laura McKean is Michelle's mother.

¶ 3 In Michael and Connie's dissolution decree, the court appointed Commencement Bay Guardianship Services (CBGS) as trustee of Morgan's and Michelle's trust assets. During those proceedings, the court ruled that both Michael and Connie had practiced deceit with respect to their community and separate assets. It found that (1) Connie McKean had misappropriated Morgan's separate funds, (2) the trustee of the Irrevocable Trust of Michael Allison McKean's Children, a trust established for both Morgan's and Michelle's benefit, had not provided a single accounting, and (3) no one had ever properly managed or maintained the trust assets. Accordingly, the court appointed CBGS as the successor trustee of the Irrevocable Trust of Michael Allison McKean's Children.

¶ 4 CBGS then petitioned for the appointment of a limited guardian to manage Morgan's and Michelle's individual non-trust assets and to monitor their beneficial interests in trust assets. In March 2004, the court appointed Guardianship Services of the South Sound (GSSS) as the guardian of Morgan's and Michelle's estates.[1]

¶ 5 The court ordered GSSS to monitor Morgan's and Michelle's beneficial interests in several trusts and in the

funds from the estate of Patricia Mandich[2] by requesting and reviewing complete trust, custodial account, and estate accountings, identifying assets of the respective trusts, custodial accounts, and the Patricia Mandich estate, collecting assets, marshaling [the girls' assets or those assets in which they have] a beneficial interest, and ensuring that the fiduciary responsibilities owed [Morgan and Michelle] as trust beneficiar[ies], custodial account *225 beneficiar[ies], and as estate beneficiar[ies] are properly carried out.

Clerk's Papers (CP) at 12-13. The court granted GSSS authority "to pursue the recovery of any trust, custodial account, or estate assets that have been transferred, withdrawn, dissipated or otherwise disposed of by any custodian (or agent of [that] custodian) of the assets of the respective trusts, accounts, or estate[s]." CP at 13.

¶ 6 The court also gave GSSS the power to "take other legal action, with [the court's approval], as necessary to protect" Morgan's and Michelle's beneficial interests. CP at 6. And the court authorized GSSS to "make expenditures for . . . monitoring [Morgan's and Michelle's] assets . . . or interests . . . and recovering any asset that may have been concealed, embezzled, conveyed, or disposed of." CP at 6. Finally, the order authorized GSSS to hire Hertog & Coster, PLLC "for necessary legal advice and representation in this matter and other matters related to [GSSS's] powers, duties and responsibilities" in this case. CP at 17.

¶ 7 In its order on GSSS's annual guardian's report, the court found that GSSS had properly titled Morgan's and Michelle's non-trust assets, placed blocks on those accounts, and contacted the Internal Revenue Service for 1099 statements reporting the girls' income dating back to 1999. GSSS investigated, verified, and reported to the court regarding all of Morgan's and Michelle's assets, both trust and non-trust, and discovered outstanding liabilities against Morgan's and Michelle's assets. GSSS obtained a $10,000 cashier's check from Connie for money she took from Michelle. GSSS also reported that it had discovered claims that Morgan and Michelle had against Environmental Fuel Development Corporation, a corporation in which they had an ownership interest. In March 2004, GSSS's attorneys located $2,647.89 in an inactive savings account at Columbia Bank in Morgan's name.

¶ 8 On January 12, 2005, GSSS filed a comprehensive memorandum highlighting each of Morgan's and Michelle's interests, claims, and assets that GSSS had discovered during the guardianship.

¶ 9 On August 2, 2005, due to a change in GSSS's management, the court appointed Capitol Guardianship Services (CGS) as the substitute limited guardian of Morgan's and Michelle's estates and gave CGS the same authority that GSSS had. GSSS thereafter filed a request for its fees and costs, and the fees and costs of its attorneys.

¶ 10 On October 31, 2005, the court authorized payment from the girls' guardianship estates of both guardians' fees and costs and Hertog & Coster's legal fees and costs through August 5, 2005. The fees and costs totaled $30,085.17. GSSS had already paid—from guardianship assets—Robin Balsam's[3] and Charles Granoski's[4] fees and costs of $10,951.00 and $3,368.00 respectively.[5] As of October 31, 2005, Morgan's and Michelle's guardianship estates had paid $44,404.17 in guardianship and legal fees and costs.

¶ 11 On February 15, 2006, the court approved the guardian's fee requests for work performed between August 5, 2005 and February 15, 2006, authorized CGS to pay itself $2,117.00 from Morgan's and Michelle's guardianship assets, and ordered Michael to pay Hertog & Coster $14,382.34 for legal fees and costs.

¶ 12 Michael, on his own, Morgan's, and Michelle's behalf, appeals (1) the February 15, 2006 order approving and directing payment of guardian's and attorney's fees and costs, (2) the February 15, 2006 order on guardian's petition for instructions regarding appeal, and (3) the March 10, 2006 judgment against him for $14,382.34. Michael also appeals (1) the August 2, 2005 order on GSSS's annual report of the estate and substitution of guardian, (2) the October 31, 2005 order approving and directing payment of GSSS's, CGS's, and Hertog & Coster's fees and costs, (3) the October 31, 2005 order requiring *226 Shannon Keene to post a bond as trustee of the Michelle Patricia Gillespie McKean Trust, and (4) the October 31, 2005 order unblocking the girls' financial accounts.

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Cite This Page — Counsel Stack

Bluebook (online)
151 P.3d 223, 136 Wash. App. 906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-guardianship-of-mckean-washctapp-2007.