Sorrell v. Gaarde-Morton

357 P.3d 828, 238 Ariz. 144, 713 Ariz. Adv. Rep. 36, 2015 Ariz. App. LEXIS 71
CourtCourt of Appeals of Arizona
DecidedMay 28, 2015
DocketNo. 1 CA-CV 14-0240
StatusPublished
Cited by6 cases

This text of 357 P.3d 828 (Sorrell v. Gaarde-Morton) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sorrell v. Gaarde-Morton, 357 P.3d 828, 238 Ariz. 144, 713 Ariz. Adv. Rep. 36, 2015 Ariz. App. LEXIS 71 (Ark. Ct. App. 2015).

Opinion

OPINION

GOULD, Judge:

¶ 1 Whitney Sorrell appeals the trial court’s judgment invalidating a beneficiary deed. We affirm, and hold that only a natural person who owns real property can execute a beneficiary deed pursuant to Arizona Revised Statute (“A.R.S.”) section 33-405.

FACTUAL AND PROCEDURAL BACKGROUND

¶ 2 In 2003, Augusta Ganoni executed a beneficiary deed to transfer her residence (the “House”) to her attorney, Sorrell, at her death. The House was property of the Augusta A. Ganoni Revocable Trust as restated in 2000. Ganoni was both settlor and trustee of the Trust. Ganoni signed the beneficiary deed in her capacity as trustee and directed that the House would transfer to Sorrell upon her death.

¶ 3 On October 13, 2011, Ganoni filed an amendment to the Trust whereby she resigned as Trastee and Sorrell was appointed as Trustee. In November 2012, Ganoni again restated the Trust. Ganoni selected Appellee, Joy Gaarde-Morton, to be trustee rather than Sorrell. Under the terms of the 2012 restatement, Sorrell would no longer receive the House at Ganoni’s death. Instead, the 2012 restatement provided Sorrell a gift of $10,000.00 and directed that the House would remain trust property to be sold, if necessary, to fulfill the gifts listed in the Trust.

¶ 4 Ganoni passed away in December 2012. In March 2013, Sorrell filed a petition for formal probate of Ganoni’s estate-planning documents from 2000. Sorrell sought appointment as personal representative and, based on the beneficiary deed, requested the court to transfer the House to him. GaardeMorton objected to Sorrell’s petition and filed a petition for formal probate stating that she was the trastee pursuant to the 2012 restatement.

¶ 5 Sorrell and Gaarde-Morton then filed cross-motions for summary judgment on the issue of whether the beneficiary deed purporting to transfer the House to Sorrell at Ganoni’s death was valid and enforceable. Following oral argument, the court granted Gaarde-Morton’s motion and denied Sorrell’s. The court concluded the House was a trust asset and, based on A.R.S. § 33-405, could not be conveyed using a beneficiary deed. The court also awarded Gaarde-Morton $12,000.00 in attorneys’ fees pursuant to A.R.S. § 12-1103.

¶ 6 Sorrell filed a motion for new trial. He reasoned that Ganoni’s conveyance of the House in her capacity as both trustee and settlor of the Trust was authorized by A.R.S. § 33-405. In the alternative, Sorrell asked the court to reform the deed to reflect Ganoni’s intent that Sorrell receive the House upon her death. The court denied Sorrell’s motion and awarded $2,000.00 in additional attorneys’ fees to Gaarde-Morton. Sorrell timely appealed.

DISCUSSION

¶ 7 Sorrell appeals from the court’s ruling denying his motion for summary judgment and granting Gaarde-Morton’s motion. The material facts are undisputed; this appeal presents a pure question of law. Nelson v. Phx. Resort Corp., 181 Ariz. 188, 191, 888 P.2d 1375, 1378 (App.1994) (“In reviewing a trial court’s ruling on cross-motions for summary judgment, we have de novo review of a question of law.”). Sorrell also appeals from the court’s subsequent denial of his motion for new trial. We review the denial of a motion for new trial for an abuse of discretion. Id.

I. Construction of A.R.S. § 33-405

¶ 8 This appeal requires us to interpret A.R.S. § 33-405 to determine whether the “owner” who executes a beneficiary deed under the statute must be a natural person. A statute’s language is “the best and most reliable index of a statute’s meaning.” N. Valley Emergency Specialists, L.L.C. v. Santana, 208 Ariz. 301, 303, ¶ 9, 93 P.3d 501, 503 (2004) (quoting State v. Williams, 175 Ariz. 98, 100, 854 P.2d 131, 133 (1993)). When the [146]*146statute’s language is clear, we must follow its plain meaning without resorting to other methods of statutory interpretation. Santana, 208 Ariz. at 303, ¶ 9, 93 P.3d at 503 (quoting Bilke v. State, 206 Ariz. 462, 464, ¶ 11, 80 P.3d 269, 271 (2003)).

¶ 9 The language used in A.R.S. § 33-405 clearly indicates that only a natural person may execute a beneficiary deed. A beneficiary deed transfers the owner’s interest in real property to a grantee beneficiary “effective on the death of the owner.” A.R.S. § 33-405(A). The statute defines an “owner” as “any person who executes a beneficiary deed.” A.R.S. § 33-405(M)(2). The statute also provides that the interest of a grantee beneficiary is subject to encumbrances made “during the owner’s lifetime.” The terms “death,” “person,” and “lifetime” contained in the statute are words that apply to a natural person. See Midtown Med. Group, Inc. v. State Farm Mut. Auto. Ins. Co., 220 Ariz. 341, 346, ¶ 17, 206 P.3d 790, 795 (App.2008) (stating that a statute’s reliance on concepts that only apply to natural persons supports the conclusion that the statute refers to only natural persons).

¶ 10 Sorrell argues, however, that the words used in the statute may also apply to Ganoni in her capacity as trustee of the Trust. Sorrell notes that a trustee, and not the trust, owns trust property. Williamson v. PVOrbit, Inc., 228 Ariz. 69, 72, ¶ 17, 263 P.3d 77, 80 (App.2011); see A.R.S. § 14-10815(A)(2)(a) (trustee has all powers over trust property as an “unmarried competent owner”). Thus, Sorrell contends, Ganoni, as trustee, qualified as a “person” who owned the House, and her “death” transferred the property to Sorrell. We disagree.

¶ 11 We will not expand A.R.S. § 33-405 to include trustees and trust property when, by its express terms, it does not do so. Price v. City of Mesa, 236 Ariz. 267, 269, ¶ 8, 339 P.3d 650, 652 (App.2014). The statute is conspicuously silent with respect to ownership interest in trust property conveyed through a beneficiary deed.

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Cite This Page — Counsel Stack

Bluebook (online)
357 P.3d 828, 238 Ariz. 144, 713 Ariz. Adv. Rep. 36, 2015 Ariz. App. LEXIS 71, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sorrell-v-gaarde-morton-arizctapp-2015.