Myrick v. Moody

802 S.W.2d 735, 1990 Tex. App. LEXIS 2694, 1990 WL 172799
CourtCourt of Appeals of Texas
DecidedNovember 8, 1990
DocketC14-90-0009-CV
StatusPublished
Cited by27 cases

This text of 802 S.W.2d 735 (Myrick v. Moody) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Myrick v. Moody, 802 S.W.2d 735, 1990 Tex. App. LEXIS 2694, 1990 WL 172799 (Tex. Ct. App. 1990).

Opinion

OPINION

PAUL PRESSLER, Justice.

This is an appeal from a summary judgment concerning construction of a trust instrument. Myrick brings four points of error and Archer brings one point of error, essentially claiming that the trial court erred in granting the summary judgment because fact issues existed as to the set-tlor’s intent and because the language of the trust was ambiguous. The judgment of the trial court is reversed.

In 1935, W.L. Moody, Jr. created a trust benefitting three of his children and three grandchildren. Moody National Bank of Galveston is the trustee. Paragraph II of the trust provided for the payment of trust income to the six named beneficiaries as follows: (1) one-fourth (¼) to Moody’s daughter, Mary Moody Northen, during her lifetime, (2) one-fourth (¼) to Moody’s daughter, Libbie Moody Thompson, during her lifetime, (3) one-fourth (¼) to Moody’s son, Shearn Moody, during his lifetime, and (4) one-fourth (¼) in equal shares to Moody’s grandchildren, Edna Haden Moody, Virginia Moody, and William Lewis Moody IV, during the lifetime of Moody’s son, William Lewis Moody III (“Moody III”). Thus, the three grandchildren who were named beneficiaries received a one-twelfth (one-third of one-fourth) share of the trust income.

*737 Paragraph II further provided for distribution of corpus. Upon the death of Moody’s three children, named as beneficiaries, paragraph II provided that their one-fourth (¼) of the trust estate or corpus would pass to their “surviving children and the children of any of [his or her] deceased children in equal shares per stirpes.” Upon the death of Moody’s son, Moody III, who was not a beneficiary under the trust, paragraph II provided that one-fourth (¼) of the trust estate would pass in equal shares to his “surviving children and the children of any of his deceased children in equal shares per stirpes.”

Paragraph III provided for distribution of income and corpus in the event that any of Moody’s children, named as beneficiaries, should die without issue. As to income, paragraph III stated:

... that part of the income which such deceased child would have received if living shall thereafter be paid over in equal shares to his or her then surviving brothers and sisters during their respective lives, excepting that the then surviving children of William Lewis Moody, III, collectively, shall receive one portion or share instead of him....

Paragraph III further provided that, if one of Moody’s children who were named as beneficiaries should die without leaving issue, their portion of the trust corpus would pass as follows:

... [the portion of] principal or corpus which the issue of such deceased child would have received shall be added in equal shares to the portion that his or her surviving brothers and sisters and the children of William Lewis Moody, III, collectively, are entitled to receive....

In 1936, Shearn Moody died leaving two sons. Pursuant to paragraph II, the Trustee distributed Shearn Moody’s one-fourth share of the corpus (excepting shares in real estate and other investments that have not yet been sold) to his two sons. This left three shares of trust income for distribution: one-third to Mary Moody Northen, one-third to Libbie Moody Thompson, and one-third in equal shares to the three named beneficiary grandchildren. Thus, the grandchildren's shares changed to one-ninth (one-third of one-third).

In 1963, Edna Moody Myrick, a named beneficiary grandchild, died leaving two children who are the appellants in this case. Because paragraph II prohibited distribution of corpus to the three grandchildren who were named beneficiaries until the death of their father, Moody III, the Trustee continued to pay Edna Moody Myrick’s one-ninth share of trust income to appellants. Likewise, when Virginia Moody Tankersly, another grandchild named as a beneficiary, died in 1981, the Trustee paid her one-third share of the income to her two children.

In 1986, Mary Moody Northen died without leaving issue, requiring application of paragraph III. The Trustee filed a declaratory judgment action álleging ambiguity and asking the trial court to determine who was entitled to trust income and corpus. Asserting that paragraph III was unambiguous, appellees Libbie Moody Thompson (“Thompson”) and William Lewis Moody IV (“Moody IV”) filed a joint motion for summary judgment. As the sole surviving named beneficiaries, Moody IV and Thompson claimed they were entitled to receive Northen’s share of income and corpus under the provisions of paragraph III. The trial court agreed finding no ambiguity and holding that the Trustee should pay North-en’s share of income equally to Thompson and Moody IV. The trial court also ruled that, upon the death of appellee Thompson, one-half of the remaining corpus should go to her lineal descendants. As to Moody IV, the trial court held that, until the death of Moody III, he or his lineal descendants should receive trust income and, upon the death of Moody III, the Trustee should distribute the corpus share to Moody IV or to his lineal descendants.

In his fourth point of error, Myrick claims the trial court erred in ruling that the donor’s trust unambiguously expressed an intent to divide the trust estate portion among only named beneficiaries who were living at the death of a beneficiary without issue. Likewise, in her first point of error, Archer claims the trial court erred in grant *738 ing summary judgment because the language in paragraph III was ambiguous.

As the movants for summary judgment, appellees had the burden of showing the trial court that no issue of material fact existed and that they were entitled to judgment as a matter of law. See Nixon v. Mr. Property Management Co., 690 S.W.2d 546, 548 (Tex.1985). Construction of a trust instrument is a question of law for the trial court where no ambiguity exists. See Hancock v. Krause, 757 S.W.2d 117, 119 (Tex.App. —Houston [1st Dist.] 1988, no writ).

The trial court’s primary objective in construing a will or trust is to determine the intent of the maker. See White v. Moore, 760 S.W.2d 242, 243 (Tex.1988); Henderson v. Parker, 728 S.W.2d 768, 770 (Tex.1987); Moody v. Pitts, 708 S.W.2d 930, 945 (Tex.App.—Corpus Christi 1986, no writ). To do so, the court must look to the language within the four corners of the trust instrument. See Henderson, 728 S.W.2d at 768; Moody, 708 S.W.2d at 935. If possible, the court should construe the instrument to give effect to all provisions so that no provision is rendered meaningless. See Moody, 708 S.W.2d at 935; Coker v. Coker, 650 S.W.2d 391, 393 (Tex.1983).

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Bluebook (online)
802 S.W.2d 735, 1990 Tex. App. LEXIS 2694, 1990 WL 172799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/myrick-v-moody-texapp-1990.