In Re Walter Sparling Revocable Trust

CourtMichigan Court of Appeals
DecidedMay 14, 2026
Docket370971
StatusUnpublished

This text of In Re Walter Sparling Revocable Trust (In Re Walter Sparling Revocable Trust) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Walter Sparling Revocable Trust, (Mich. Ct. App. 2026).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

In re WALTER SPARLING REVOCABLE TRUST.

VICKI TURNBULL, JUDITH MILLER, DELORES UNPUBLISHED GAUVEY, and JOHN SPARLING, May 14, 2026 10:03 AM Appellants,

v No. 370971 St. Clair Probate Court MARY SPARLING, and GREGORY SPARLING LC No. 18-000526-TV and WAYNE SPARLING, as Co-Trustees of the WALTER SPARLING REVOCABLE TRUST,

Appellees.

Before: BAZZI, P.J., and BOONSTRA and SWARTZLE, JJ.

PER CURIAM.

Appellants filed a petition related to their deceased father’s trust and requested the probate court to compel an accounting, return of property, and turn-over of real estate as well as to remove the cotrustees. The trial court denied the petition, and appellants now appeal. We affirm.

I. BACKGROUND

This appeal is one of several disputes that have arisen following the death of Walter Sparling. See Sparling v Sparling, unpublished per curiam opinion of the Court of Appeals, issued June 16, 2022 (Docket No. 355843), lv den 510 Mich 1065 (2022); see also Sparling v Rumple, unpublished per curiam opinion of the Court of Appeals, issued July 17, 2025 (Docket No. 369228). Walter was married to his wife Mary for 66 years and had eight children, some of whom are the appellants and appellees in this case: Vicki, Judith, Delores, John, Gregory, and Wayne.

-1- Before Walter’s death, the Walter Sparling Revocable Trust was established, which provided that after Walter passed away, the trustees were to distribute the funds as follows:

(a) The Trustees shall pay to Donor’s wife, Mary L. Sparling, if she survives Donor, the entire net income from this Trust, at convenient times, but at least quarter- annually, during her lifetime; and shall grant to spouse the use of the personal residence for her lifetime.

(b) If, in Trustees’ opinion, the income from this Trust, together with other resources available to her, is not sufficient for her care and support, in the manner in which she shall have been accustomed, the Trustees shall from time to time use such portion of the principal of this Trust as they may deem necessary or wise for any of those purposes.

Once Mary passed away, the income and principal would be paid to Walter’s children or their estates according to the revocable trust.

Thirty years after the revocable trust was established, Walter executed the Walter Sparling Irrevocable Grantor Trust, and a significant amount of the income-producing assets were transferred from the revocable trust to the new irrevocable trust. Mary sued, claiming that the irrevocable trust was invalid, and a jury found that Walter did not have sufficient mental capacity to create the irrevocable trust. The trial court found that no affirmative defenses applied and ordered the dissolution of the irrevocable trust and the return of the assets to the revocable trust. This Court affirmed the trial court’s decision. Sparling, unpub op at 2.

During the first lawsuit, the cotrustees, sons Greg and Wayne, did an accounting of Mary’s income and expenses the three years prior to Walter’s death. The cotrustees determined that Mary was accustomed to $17,000 per month in income, that the trust had not been paying that amount to Mary, and that based on the years of underpayment, the revocable trust owed Mary approximately $580,000. The cotrustees also calculated that if the irrevocable trust was invalid, the shortfall in income payments due to improperly diverted assets would be approximately $1.8 million.

During the prior litigation, Mary’s attorney sent a letter to the cotrustees demanding the missing net income from assets that were improperly transferred to the irrevocable trust. The cotrustees forwarded the letter to the attorney who drafted the revocable trust and directed the attorney to negotiate a settlement with Mary if warranted.

As a result of the negotiations, Mary and the cotrustees entered into a settlement agreement that provided a payment of $746,000 to Mary from the revocable trust. The settlement occurred before the dissolution of the irrevocable trust and return of the assets to the revocable trust, so the cotrustees sold stock held by the revocable trust to meet the payment obligations under the settlement agreement. Mary and the trustees entered into an addendum to the settlement agreement that provided that Mary would receive a condominium in Florida in lieu of some of the monthly payments under the agreement.

-2- After the trial court issued its order dissolving the irrevocable trust, daughter Vicki filed a petition with the probate court, and as a result of the petition, the probate court ordered the cotrustees to file an inventory of all assets in the revocable trust and an accounting of the transfer of any principal from the revocable trust to Mary. The cotrustees filed an accounting and provided a copy of the settlement agreement.

Over a year after the cotrustees provided this information, appellants filed the instant petition seeking an accounting, return of excess funds paid to Mary, removal of Greg and Wayne as trustees, return of trustee fees, and appointment of an independent trustee. Appellants alleged that the cotrustees had made a concerted effort to deplete the assets of the revocable trust for their own benefit to the detriment of the other children without properly taking into account Mary’s need or other sources of income. The cotrustees and Mary asked the probate court to approve the settlement agreement under MCL 700.7111, arguing that the agreement resolved a liability to Mary on favorable terms and respected Walter’s intent.

After a two-day evidentiary hearing at which Greg, John, and Wayne testified, the probate court issued a written opinion denying the relief requested in the petition and approving the settlement under MCL 700.7111. The probate court held that Mary’s demand for reimbursement created a dispute that had a possibility of resulting in liability for the trust, and therefore, the cotrustees were within their statutory and trust authority to enter into the settlement agreement and addendum. Further, the probate court held that the cotrustees did not breach their fiduciary duties and that appellants did not establish grounds for removal.

Appellants now appeal.

II. ANALYSIS

A. APPROVAL OF SETTLEMENT AGREEMENT AND ADDENDUM

On appeal, appellants argue that the probate court erred in approving the settlement agreement and addendum under MCL 700.7111 because the cotrustees’ representation was inadequate, and the agreements violated the revocable trust’s material purpose. We review for an abuse of discretion the probate court’s decisions and for clear error the probate court’s findings of fact. In re Huntington Estate, 339 Mich App 8, 17; 981 NW2d 72 (2021). An abuse of discretion occurred if the trial court’s decision resulted in an outcome that falls outside the range of principled outcomes or there was an error of law. Id. A factual finding is clearly erroneous if the Court “is left with a definite and firm conviction that a mistake has been made.” In re Guardianship of Redd, 321 Mich App 398, 403; 909 NW2d 289 (2017). We review de novo the interpretation of a trust. In re Stan Estate, 301 Mich App 435, 442; 839 NW2d 498 (2013).

The probate court approved the settlement agreement under MCL 700.7111, which permits nonjudicial settlement agreements to resolve the following matters:

(a) The interpretation or construction of the terms of the trust.

(b) The approval of a trustee’s report or accounting.

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Cite This Page — Counsel Stack

Bluebook (online)
In Re Walter Sparling Revocable Trust, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-walter-sparling-revocable-trust-michctapp-2026.