Matter Of The Estate Of: Larry Dean Niggli

CourtCourt of Appeals of Washington
DecidedJune 3, 2024
Docket84825-9
StatusUnpublished

This text of Matter Of The Estate Of: Larry Dean Niggli (Matter Of The Estate Of: Larry Dean Niggli) 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
Matter Of The Estate Of: Larry Dean Niggli, (Wash. Ct. App. 2024).

Opinion

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

In the Matter of the Estate of No. 84825-9-I LARRY DEAN NIGGLI. DIVISION ONE

ROSEMARY NIGGLI, UNPUBLISHED OPINION

Appellant,

v.

DAWN LANDRUM,

Respondent.

HAZELRIGG, A.C.J. — Rosemary and Larry Niggli were a married couple

who, for nearly the duration of their marriage, resided in a home that Larry owned

as separate property. After Larry’s death, Rosemary filed an action under the trust

and estate dispute resolution act (TEDRA)1 and sought an award in lieu of

homestead exception as his surviving spouse. The trial court granted summary

judgment dismissal of her TEDRA claims related to the residence based on a

document she had signed at the request of a lending institution when the home

was refinanced during the marriage. Rosemary assigns error to the summary

judgment dismissal of her petition and asserts the bank document was not a waiver

of her statutory rights as a surviving spouse under TEDRA. We agree.

Accordingly, we reverse and remand for further proceedings.

1 Ch. 11.96A RCW. No. 84825-9-I/2

FACTS

Rosemary and Larry Niggli were married on October 2, 1999. Larry 2 had

two children from a prior marriage, one of whom is Dawn Landrum. Rosemary had

one child from a prior marriage, Michelle Atha. The couple lived together in a

house that the parties do not dispute Larry had purchased prior to the marriage as

his separate property. Larry took out a home equity line of credit against the

property during the Nigglis’ marriage in 2006 and refinanced the home in 2013.

During the 2013 refinancing process, Boeing Employees’ Credit Union (BECU), as

the lender, required Rosemary to sign a preprinted form entitled “Non-Borrowing

Person Signature Attachment” (BECU loan attachment). The form included the

following language:

NAME OF NON-BORROWING PERSON Rosemary J Niggli

The non-borrowing person named above acknowledges that the real property described in the deed of trust attached hereto, and by this reference incorporated herein, is the sole and separate property of the borrower named above. The non-borrowing person will make no claim of title or interest therein. Acknowledgement of the deed of trust by execution of this addendum by the non-borrowing person is not to be construed as a liability for debt incurred by the borrower but is for the purposes of inducement to [BECU] to extend financing requested by the borrower so that the purchase or refinance may be closed.

(Some capitalization omitted.) Rosemary signed the form on November 27, 2013

in the presence of a notary. Other documents in that BECU refinancing paperwork

listed both Larry and Rosemary individually as a “[b]orrower.” On December 13,

2 For clarity, because they share the same last name, we refer to Rosemary and Larry by

their first names. No disrespect is intended.

-2- No. 84825-9-I/3

the BECU loan attachment was recorded in Snohomish County under auditor file

no. 201312030092.

In the months before Larry’s death, he and Rosemary began living

separately due to health concerns. Larry had previously been diagnosed with

cancer and eventually needed full-time care. Rosemary underwent surgery in July

2021, and afterwards she resided with Atha. 3 On August 4, Larry signed a durable

power of attorney for health care, naming Landrum as his attorney-in-fact. On

October 8, Larry executed a last will and testament appointing Landrum as his

personal representative, and a revocable transfer on death deed which granted

the home to Landrum. That deed was recorded in Snohomish County three days

later on October 11. The will left all of Larry’s personal property to his children and

grandchildren and stated that he “made provision[s] by other means for [his] wife

Rosemary.” 4 Larry passed away on November 5, 2021.

On December 1, Rosemary filed a petition in Snohomish County Superior

Court to probate Larry’s estate, apparently unaware of his October 2021 will.

Landrum appeared in that case as the personal representative of Larry’s estate

and moved to admit his will. On December 17, Rosemary filed a separate TEDRA

action 5 under a separate cause number. The TEDRA petition requested an award

from Larry’s property in lieu of a homestead exemption under ch. 11.54 RCW as

his surviving spouse or, in the alternative, a ruling declaring the home a community

3 Atha stated that Larry brought Rosemary to her house because he was unable to take

care of her due to his own health concerns. Landrum acknowledges that Rosemary moved in with Atha, but states that the move was made “well before [Larry’s] hospitalization” and that it was because Rosemary needed Atha’s care. 4 These provisions included two pensions and a life insurance policy. 5 A TEDRA action is a claim made under ch. 11.96A RCW, which provides for judicial and

non-judicial methods for the resolution of disputes involving trusts and estates.

-3- No. 84825-9-I/4

property asset. She also filed a notice of lis pendens, notifying Landrum that the

subject of the TEDRA action was to recover the title to or establish a lien on the

home.

On February 23, 2022, the court conducted its initial hearing on the TEDRA

petition and, after taking argument from the parties, 6 issued an order which set out

a number of findings related to the marriage and assets. These included express

findings that the home was “refinanced in July 2006 possibly with community

property and then was refinanced again in 2013 possibly with community property”

and that, while the transfer on death deed was recorded, “this however does not

end the question as to whether Rosemary . . . had an interest in the real property

by means of equitable lien.” The order continued the matter for 90 days, sustained

the lis pendens, and reserved all relief sought by the parties, including sanctions.

Shortly thereafter, in March 2022, Rosemary was diagnosed with dementia and

Atha and her family began to provide full-time, live-in care for her.

In May 2022, the court issued an order that reserved ruling on Landrum’s

motion to admit the will 7 and sua sponte appointed Landrum as the administrator

of the separate property portion of Larry’s estate and Atha as Rosemary’s guardian

ad litem after concluding that Rosemary had insufficient capacity to continue as

the administrator of Larry’s estate. This order directed Landrum to “make

payments upon the mortgage” and that “no further payments shall be made at this

6 The transcript of the hearing was not provided to this court. 7 The parties appear to agree this is what occurred at this stage of proceedings. Further,

the caption of this order includes “Order on Motion to Admit Will” among the several motions before the court. Item seven in the order expressly notes that the court is reserving “any further ruling on any other issue presented in this motion,” which presumptively includes the motion to admit the will.

-4- No. 84825-9-I/5

time from the estate account.” Landrum then refinanced the home as community

property with her husband.

On August 8, 2022, Landrum filed a motion for summary judgment dismissal

of all TEDRA claims related to the home, asserting that Rosemary had disclaimed

her interest in the home by signing the BECU loan attachment which Landrum

averred acted as both a waiver and a quitclaim deed, and that the transfer on death

deed was valid.

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