In Re: The Gordon & Frances Sales Family Trust

CourtCourt of Appeals of Washington
DecidedNovember 10, 2020
Docket52630-1
StatusUnpublished

This text of In Re: The Gordon & Frances Sales Family Trust (In Re: The Gordon & Frances Sales Family Trust) 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: The Gordon & Frances Sales Family Trust, (Wash. Ct. App. 2020).

Opinion

Filed Washington State Court of Appeals Division Two

November 10, 2020

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II In re the Matter of the No. 52630-1-II

THE GORDON AND FRANCES SALES FAMILY TRUST.

MICA JEAN MCLEAN (aka WRIGHT), LUKE G. SPRAUGE, ZECHARIAH E. SPRAGUE,

Appellants,

v.

ECHO MARIE SALES and BRUCE UNPUBLISHED OPINION GORDON SALES, Co-Successor Trustees of the GORDON AND FRANCES SALES FAMILY TRUST,

Respondents.

LEE, C.J. — Mica Jean McLean (aka Wright), Luke G. Sprague, and Zechariah E. Sprague

(collectively Wright)1 appeal the trial court’s Findings of Fact and Conclusions of Law and Partial

Order on Merits in this Trust and Estate Dispute Resolution Action (TEDRA) petition. Wright

1 The appellant Mica Jean McLean (aka Wright) is referred to throughout the record by various last names. For purposes of this opinion, we will use the name Wright to collectively refer to all the appellants. No. 52630-1-II

argues that the trial court erred by (1) interpreting a trust abstract2 (Abstract) to determine the terms

of a missing Trust Agreement not in accordance with RCW 11.96A.020, (2) using a certification

of trust under RCW 11.98.075 to determine the terms of the missing Trust Agreement, (3) re-

creating the terms of the missing Trust by interpreting the Abstract, and (4) entering findings of

fact which are not supported by substantial evidence and entering conclusions of law which are

not supported by the findings of fact.

We hold that the trial court (1) did not err by interpreting a trust abstract to determine the

terms of a missing Trust Agreement, (2) did not use a certification of trust under RCW 11.98.075

to determine the terms of the missing Trust, (3) did not err by re-creating the terms of the missing

Trust by interpreting the Abstract, and (4) did not err in its findings of fact and conclusions of law.

Accordingly, we affirm the trial court’s Findings of Fact and Conclusions of Law and Partial Order

on Merits.

FACTS

This TEDRA petition involves the issue of whether a trust abstract can be used to determine

the terms of a lost trust agreement.

A. BACKGROUND

Gordon and Frances Sales, husband and wife, were the parents of Echo Sales, Bruce Sales,

and Mica McLean (aka Wright) and the grandparents of Luke Sprague and Zechariah Sprague.

2 The Gordon and Frances Sales Family Trust Certificate of Trustee’s Power and Authority and Abstract of Trust

2 No. 52630-1-II

Gordon and Frances3 executed a trust on January 10, 1994. The assets transferred into the Trust

were the Montana Ranch Property, the Montana Mining Property, and the Sequim Property. The

Abstract was filed with the Clallam County Auditor on May 25, 1994. The Abstract lists Gordon

and Frances as both the Grantors and Trustees of the trust. The Abstract states, in relevant part:

The following provisions are found in that certain Trust Agreement named and described above, by and between the above-designated Grantors and Trustee, and may be relied upon as a full statement of the matters covered by such provisions by anyone dealing with Trustee or any successor Trustee. However, in the unlikely event there is a clerical error causing a discrepancy between the original Trust and this Certificate of Trustee’s Power and Authority and Abstract of Trust, the original Trust Agreement will control the interpretation and administration of the Trust.

....

1.2 Names and Addresses of Beneficiaries. We hereby disclose the names and addresses of the beneficiaries of this trust, as follows:

Bruce Gordon Sales Per Stirpes [Address]

Mica Jean McLean Per Stirpes [Address]

Echo Marie Sales Per Stirpes [Address]

Luke G. Sprague Per Capita [Address]

Zechariah E. Sprague Per Capita [Address]

1.3 Designation of Successor Trustees. If the Trustee dies or otherwise ceases to function as Trustee, the following shall serve as Successor Trustee in the following order:

3 Because several of the parties have the same last name, they are referred to by their first name for clarity. No disrespect is intended.

3 No. 52630-1-II

Echo Marie Sales [Address]

Bruce Gordon Sales [Address]

1.10 Place of Constructive Notice of Trust. The parties to this Trust designate the County Recorder of [C]lallum County, Washington, as the location where title companies and others may check to ascertain if this Trust has been modified in any material respect. A signed Abstract of certain terms of this Trust shall be filed or recorded with that public office as notice of the existence of this Trust, its Grantor, Trustee, beneficiaries, Trustee powers and other relevant provisions. All parties dealing with this Trust may rely on the Abstract, Amended Abstract and other documents filed or recorded with that public office in ascertaining the status of this Trust and may assume, if there are no recordings to the contrary, that no material modifications have been made to the Trust since the last recording.

3.1 Power in Grantors During Lifetimes of Both Grantors. Subject to paragraph 3.3 (Irrevocability on Death of First Grantor Spouse), Grantors reserve the right at any time or times to amend or revoke this Trust Agreement and the Trusts hereunder, in whole or in part, by an instrument in writing, signed by both Grantors and delivered in Grantors’ lifetimes to Trustee; provided, however, that if there are Husband and Wife Grantors, no such alteration, amendment or revocation shall affect the character of any property held by the Trust, and the interest of the Husband and Wife in the various Trust assets, whether community, separate or otherwise, shall retain its character as such. Nothing herein shall be construed as a transfer of separate properties from Husband to Wife or from Wife to Husband, and in the event of any revocation or amendment, all property shall be reconveyed to the respective owners. If this Trust Agreement is revoked in its entirety, the revocation shall take effect upon the delivery of the required writing to Trustee. On the revocation of this Trust Agreement in its entirety, Trustee shall deliver to Grantors, or as Grantors may direct in the instrument of revocation, all the Trust estate.

4.2 Trustee Powers. In the investment, administration and distribution of the Trust estate and the several shares thereof, the Trustee (subject only to the duty to apply the proceeds and avails of the Trust estate to the purposes herein specified) may perform every act in the management of the Trust property which individuals may perform in the management of like property owned by them free of trust. Trustee may exercise every power with respect to each item of property in the Trust estate, real or personal, which individual owners of like property may exercise,

4 No. 52630-1-II

including, by way of illustration but not by way of limitation, the following powers:[4]

4.1.cc To Sell and Lease. To sell, lease, pledge, mortgage, transfer, exchange, convert or otherwise dispose of, or grant options with respect to, any and all property at any time forming a part of the trust estate, in such manner, at such time or times, for such purposes and for such prices and upon such terms, credits and conditions as Trustee deems advisable.

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In Re: The Gordon & Frances Sales Family Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-gordon-frances-sales-family-trust-washctapp-2020.