Mangels v. Cornell

189 P.3d 573, 40 Kan. App. 2d 110, 2008 Kan. App. LEXIS 123
CourtCourt of Appeals of Kansas
DecidedAugust 8, 2008
Docket98,780
StatusPublished

This text of 189 P.3d 573 (Mangels v. Cornell) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mangels v. Cornell, 189 P.3d 573, 40 Kan. App. 2d 110, 2008 Kan. App. LEXIS 123 (kanctapp 2008).

Opinion

189 P.3d 573 (2008)

Darrell MANGELS, Carl Mangels, and Involuntarily Joined Plaintiffs: Ronald Mangels, Donald Mangels, and Robert Mangels, Appellants,
v.
Judith CORNELL, Appellee.

No. 98,780.

Court of Appeals of Kansas.

August 8, 2008.

*575 Charles E. Owen, II, of Charles E. Owen, II, P.A., of Garden City, and S. Lucky DeFries, and Jeffrey A. Wietharn, of Coffman, DeFries & Nothern, of Topeka, for appellants.

William J. Graybill, of Graybill, Witcher & Ambrosier, of Elkhart, for appellee.

Before GREENE, P.J., MARQUARDT and LEBEN, JJ.

GREENE, J.

This appeal frames for our consideration the construction of a revocable trust and requires that we determine whether the district court erred in validating trust amendments executed after the death of one of the grantors/settlors, which amendments changed the trustees and significantly changed the distribution of income to successor beneficiaries. Appellants Darrel and Carl Mangels, adopted sons of deceased settlor C.L. "Bud" Helwig, challenge the amendments made by their adoptive mother Thelma Helwig after Bud died, arguing the trust unambiguously does not permit amendment or revocation of the trust after the death of one of the settlors. Appellee Judith Cornell argues the district court properly construed the trust as permitting amendment or revocation by either settlor at any time. We construe the trust as joint, mutual, and contractual in nature and not subject to revocation or amendment by a surviving settlor, thus requiring that we reverse the district court and remand for further proceedings.

Factual and Procedural Background

In March 1996, Bud and Thelma Helwig, husband and wife, executed a revocable trust agreement designated "The Helwig Revocable Trust." The trust was funded with five 1/4-sections of farmland and "mineral and royalty interests" in another two and 1/2-sections, all in Grant County. The trust provided that net income would be distributed to the settlors or survivor and thereafter in one-third shares to each of the Helwig's adopted children, Darrel Mangels, Carl Mangels, and Judith Cornell; and upon the death of such adopted children, their share was to be paid per stirpes to the children of each.

Bud died in March 2004, and in September 2004, Thelma amended the trust to change the successor trustees from Darrel's and Carl's children to Darrel, Carl, and Judith. Then in December 2004, Thelma again amended the trust to provide that after her death, the first $1 million of net income should be paid to Judith, with the remaining net income divided in one-third shares as originally provided. Both of these amendments were challenged in a declaratory judgment action filed by Darrel and Carl in August 2005.

In deciding a motion for summary judgment adverse to Darrel and Carl, the district court held that the trust did not prohibit amendment by Thelma after the death of Bud.

"From a reading of the revocable trust agreement executed by C.L. and Thelma on March 19, 1996, there is absolutely no indication that there was any intention that the trust agreement was a joint, mutual and contractual agreement by the settlors.
. . . .
"Furthermore, this Court finds that the trust as established by C.L. and Thelma allows them or either of them to alter, amend, revoke or terminate the trust."

Following a trial in January 2007, the district court addressed other issues but reaffirmed *576 its summary judgment decision, thus validating the challenged amendments. Darrel and Carl appeal.

Standards of Review

The interpretation and legal effect of written instruments are matters of law, and an appellate court exercises unlimited review. McGinley v. Bank of America, N.A., 279 Kan. 426, 431, 109 P.3d 1146 (2005). The construction of a trust, like that of other writings, "`may be construed and its legal effect determined by the appellate court regardless of the construction made by the trial court.'" In re Estate of Sanders, 261 Kan. 176, 181, 929 P.2d 153 (1996) (quoting Galindo v. City of Coffeyville, 256 Kan. 455, Syl. 2, 885 P.2d 1246 [1994]). Whether a written instrument is ambiguous is a question of law which we review de novo. Zukel v. Great West Managers, LLC, 31 Kan.App.2d 1098, 1101, 78 P.3d 480 (2003), rev. denied 277 Kan. 928 (2004).

Did the District Court Err in Construing the Trust to Permit the Amendments by Thelma After the Death of Bud?

Generally, if a written instrument has clear language and can be carried out as written, rules of construction are not necessary. City of Arkansas City v. Bruton, 284 Kan. 815, 829, 166 P.3d 992 (2007). When ambiguity exists, however, parol evidence is admissible to ascertain the meaning of the words used in the written instrument. In re Hjersted Revocable Trust, 35 Kan.App.2d 799, 804, 135 P.3d 192, rev. denied 282 Kan. 789 (2006).

"`[T]he primary objective of trust law is to carry out the settlor's intent. [Citation omitted.] Consequently, "[i]f the text of the trust indenture is plain and unambiguous, the intent of the trustor (settlor) can be ascertained from the language used. [Citation omitted.] Where construction is necessary [however] the court must put itself in the situation of the trustor when the trustor made the trust instrument and, from consideration of the language used in the entire instrument determine the intention of the trustor. [Citations omitted.] The cardinal rule is that the intention of the trustor as gathered from the whole instrument must control unless contrary to settled principles of law." [Citation omitted.]'" In re Hjersted Revocable Trust, 35 Kan.App.2d at 805, 135 P.3d 192 (quoting Godley v. Valley View State Bank, 277 Kan. 736, 741-42, 89 P.3d 595 [2004]).

In construing a trust instrument, we approach the issues and apply the same rules of construction as applicable to the construction of wills. K.S.A. 58a-112.

Language of the Disputed "Revocability" Provision

At the heart of this dispute is the proper construction of a provision of the trust entitled "Revocability." It provides:

"13. REVOCABILITY. This trust shall be revocable, and the Grantors expressly acknowledges that they shall have the right or power, whether alone or in conjunction with others, and in whatever capacity, to alter, amend, revoke, or terminate this trust, or any of the terms of this Agreement, in whole or in part." (Emphasis added.)

Remarkably, each of the respective sides of this dispute argues the language of paragraph 13 is clear and unambiguous, but each has quite divergent views of language's meaning.

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Related

In Re Estate of Tompkins
407 P.2d 545 (Supreme Court of Kansas, 1965)
Reznik v. McKee, Trustee
534 P.2d 243 (Supreme Court of Kansas, 1975)
Heyen v. Hartnett
679 P.2d 1152 (Supreme Court of Kansas, 1984)
In Re the Estate of Sanders
929 P.2d 153 (Supreme Court of Kansas, 1996)
McGinley v. Bank of America, N.A.
109 P.3d 1146 (Supreme Court of Kansas, 2005)
Zukel v. Great West Managers, LLC
78 P.3d 480 (Court of Appeals of Kansas, 2003)
In Re the Estate of Sauder
156 P.3d 1204 (Supreme Court of Kansas, 2007)
Galindo v. City of Coffeyville
885 P.2d 1246 (Supreme Court of Kansas, 1994)
Bell v. Brittain
880 P.2d 289 (Court of Appeals of Kansas, 1994)
Godley v. Valley View State Bank
89 P.3d 595 (Supreme Court of Kansas, 2004)
City of Arkansas City v. Bruton
166 P.3d 992 (Supreme Court of Kansas, 2007)
In re the Norman B. Hjersted Revocable Trust
135 P.3d 192 (Court of Appeals of Kansas, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
189 P.3d 573, 40 Kan. App. 2d 110, 2008 Kan. App. LEXIS 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mangels-v-cornell-kanctapp-2008.