Paul v. Arvidson

2005 OK CIV APP 85, 123 P.3d 808, 2005 Okla. Civ. App. LEXIS 72, 2005 WL 2980972
CourtCourt of Civil Appeals of Oklahoma
DecidedJuly 15, 2005
Docket100,014
StatusPublished
Cited by11 cases

This text of 2005 OK CIV APP 85 (Paul v. Arvidson) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul v. Arvidson, 2005 OK CIV APP 85, 123 P.3d 808, 2005 Okla. Civ. App. LEXIS 72, 2005 WL 2980972 (Okla. Ct. App. 2005).

Opinion

Opinion by

BAY MITCHELL, Judge.

¶ 1 This appeal comes from a declaratory judgment where the trial court held that the real property known as 4535 E. 32nd Place in Tulsa, was the corpus of “The Thomas E. Stewart and Dorothy L. Stewart Revocable Trust Dated October 29,1992” (Trust No. 1). The court held the surviving Grantor, Thomas Stewart, had not revoked this trust in writing and delivered to the Trustee, as required by the terms of that trust, when he created the “Thomas E. Stewart and Maggie Sue Stewart Revocable Living Trust Agreement Dated July 15th, 1999” (Trust No. 2), *809 or by deeding the subject property to Trust No. 2. The court held that because the subject property remained the corpus of Trust No. 1, Thomas could not convey title to the property as an individual. The trial court denied motions to vacate, reconsider and to clarify the judgment.

¶ 2 The subject of trusts is one of equitable cognizance, and the trial court’s judgment will only be reversed if it is clearly contrary to the weight of the evidence or contrary to law. Matter of Edwards Irrevocable Trust, 1998 OK CIV APP 144, ¶ 2, 966 P.2d 810, 812. Further, we review the denial of a new trial only to determine if the trial court abused it discretion or applied an incorrect legal standard. Jones, Givens, Gotcher & Bogan, P.C. v. Berger, 2002 OK 31, ¶ 5, 46 P.3d 698, 701. However, even though a trial court is vested with wide discretion in denying a new trial, we must reverse if the trial court erred regarding a pure question of law. Id.

¶3 Here, we hold the court erred as a matter of law when it found Thomas, who was the sole Grantor and Trustee under Trust No. 1, was required to deliver formal written notice of revocation to himself. We hold Thomas successfully revoked Trust No. 1 as to the subject property by establishing Trust No. 2, in which he intended to include all his property, and by deeding the subject property to Trust No. 2.

¶ 4 This lawsuit began as a breach of contract and specific performance action by Plaintiffs Cynthia and Michael Paul, who filed suit against Maggie and Thomas Stewart to enforce the sale of the subject property. They settled when Maggie agreed to sell the property. However, before the sales price could be paid to Maggie, Tracy and James Arvidson intervened, claiming they should be paid the sales price because the property sold was the corpus of Trust No. 1 of which they were beneficiaries. They noted Thomas and his first wife, Dorothy Stewart, had established a revocable inter vivos trust in 1992 (Trust No. 1) that was funded by the subject property, along with certain stocks, savings accounts and household contents. Thomas and Dorothy had executed a Quitclaim Deed to “... Thomas E. Stewart and Dorothy L. Stewart, Trustees of the Thomas E. Stewart and Dorothy L. Stewart Revocable Trust dated October 29th, 1992

¶ 5 Trust No. 1 included a reservation of the right by the Grantors to revoke or modify the trust in whole or in part, or change the beneficiaries without notice or consent to any person, other than by written notice delivered to the Trustees. The only Trustees were Thomas and Dorothy Stewart. After Dorothy died in November of 1998, Thomas was the sole surviving Trustee and Grantor for Trust No. 1. James and Tracy Arvidson, who were Thomas’ step-grandchildren, were beneficiaries of Trust No. 1. After Dorothy’s death, Thomas amended Trust No. 1 on December 17, 1998 so that after specific bequests were made, Maggie would inherit half of the Trust benefits, and the other half would be split between James Arvidson, Tracy Arvidson and Barbara Jean Chatham, who was Thomas’ daughter. The amended trust is referred to as Trust No. 1-A.

¶ 6 Approximately six months later on June 3, 1999, Thomas married Maggie. Then, on July. 15, 1999, Thomas and Maggie Stewart .executed Trust No. 2. Maggie and Thomas were co-trustees, and the surviving spouse was the main beneficiary, with Tracy Arvidson and James Arvidson each receiving only one dollar. Trust No. 2 declared that it held “all real and personal property herein as evidenced by the attached Schedule ‘A’ annexed hereto.” However, Trust No. 2 did not include Schedule A. The Trust also stated the following: “It is our express desire and intent to transfer all of our property into this said Trust established hereby, tohether listed on the attached Schedule A or not, including property for which no documents of title are in existence or otherwise normally utilized for said property (i.e., personal effects, etc.).” (Emphasis added). Trust No. 2 did not contain any provisions specifically revoking Trust No. 1 or Trust No. 1-A.

¶ 7 Subsequently, on August 5, 1999, Thomas and Maggie executed a General Warranty Deed, intending to convey the subject property into Trust No. 2. The deed was “between Thomas E. Stewart and Maggie Sue Stewart, husband and wife, ... and *810 Thomas E. Stewart and Maggie Sue Stewart, as Independent Co-trustees of the Thomas E. Stewart and Maggie Sue Stewart Revocable Living Trust dated the 15th day of July, 1999 ...”

¶ 8 Thomas passed away in September, and Maggie took possession of all assets, including the subject property. The issue in this case is whether strict compliance with the revocation requirement in Trust No. 1 of written notice delivered to the Trustee was required to partially revoke Trust No. 1 as to the subject property, where Thomas was both the sole Grantor and the Trustee, and had executed Trust No. 2 and a General Warranty Deed to transfer the subject property into that new trust.

¶ 9 Oklahoma law states that “[ejvery trust shall be revocable by the trustor, unless expressly made irrevocable by the terms of the instrument creating the same.” 60 O.S.2001 § 176.41. Here, Trust No. 1 expressly allowed the Grantors to revoke, stating in relevant part:

The Grantors jointly during their lifetime, and the survivor of them during his or her lifetime, reserve the right at any time, or from time to time, without consent of or notice to any person other than the Trustees, to revoke or modify this Trust in whole or in part, or to change the beneficiaries or assets thereof by written notice of such revocation, modification, change or withdrawal delivered to the Trustees.

The sole surviving Grantor and Trustee at the time of the potential revocation was Thomas. The trial court determined Thomas did not revoke Trust No. 1 because he failed to deliver written notice of revocation to the Trustee. The court further found that the General Warranty Deed was insufficient to satisfy the requirement of written notice. However, the trial court’s analysis failed to recognize that the only Trustee to whom Thomas would have been required to give written notice was himself.

¶ 10 The Arvidsons contend Thomas could only revoke Trust No. 1 by delivering written notice or including a written revocation in Trust No. 2 or in the General Warranty Deed. Maggie, on the other hand, argues that the requirement of written notice to the Trustee is only intended to protect the Trustee, and emphasizes that requiring a trustee to prove that he delivered written notice to himself would be absurd. In Barnette v. McNulty, 21 Ariz.App.

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Cite This Page — Counsel Stack

Bluebook (online)
2005 OK CIV APP 85, 123 P.3d 808, 2005 Okla. Civ. App. LEXIS 72, 2005 WL 2980972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-v-arvidson-oklacivapp-2005.