Waters v. Peaks

775 S.E.2d 925, 242 N.C. App. 253, 2015 WL 4081948, 2015 N.C. App. LEXIS 548
CourtCourt of Appeals of North Carolina
DecidedJuly 7, 2015
DocketNo. COA15–36.
StatusPublished

This text of 775 S.E.2d 925 (Waters v. Peaks) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waters v. Peaks, 775 S.E.2d 925, 242 N.C. App. 253, 2015 WL 4081948, 2015 N.C. App. LEXIS 548 (N.C. Ct. App. 2015).

Opinion

HUNTER, JR., ROBERT N., Judge.

Bonnie G. Waters, Jr. ("Plaintiff") appeals the trial court's 20 June 2014 order granting summary judgment in favor of his sister, Patricia W. Peaks, in her individual capacity, in her capacity as executor of their mother's estate, and in her capacity as successor trustee of their parents' trust (collectively, "Defendants"). Defendants cross-appeal for failure to assess costs against Plaintiff. We affirm in part, and remand in part.

I. Factual & Procedural History

Bonnie G. Waters, Sr. and Ada L. Waters were married on 22 November 1956. Mr. Waters was a farmer and owned BGW Trucking Company and BGW Construction Company. Mr. and Mrs. Waters owned and operated the Waters Service Station on N.C. Highway 32 in Pinetown, as well as A & B Forestry, a contract land developer for Weyerhaeuser Company.

During the spring of 2005, Mr. and Mrs. Waters consulted with an estate planning attorney, Patrick Neighbors ("Attorney Neighbors"), to do comprehensive estate planning to preserve their assets. Subsequently, on 23 June 2005, Mr. and Mrs. Waters jointly executed a trust agreement entitled the "WATERS REVOCABLE LIVING TRUST" ("Waters Trust"), which provided for the use and disposition of their properties, both during their lifetimes and upon their death. The terms of the Waters Trust are the subject of this dispute.

According to the Waters Trust, Mr. and Mrs. Waters were to serve as initial trustees and beneficiaries during their lifetimes and, upon the death of both spouses, their daughter, Patricia, was designated as successor trustee, and their son, Plaintiff, was designated as alternate successor trustee. Mr. and Mrs. Waters transferred their assets into the Waters Trust by executing a "Bill of Sale," "Assignment of Motor Vehicles," and "Comprehensive Transfer Document." Simultaneously, Mr. and Mrs. Waters executed individual wills which contained pour-over provisions devising any assets owned by Mr. or Mrs. Waters at the time of his or her death into the Waters Trust.

The Waters Trust contained a plan of distribution for certain property assets that had been disclaimed by the surviving spouse and that had not already been given as a gift or otherwise satisfied by Mr. or Mrs. Waters by the time of death of the surviving spouse. That plan of distribution gave Plaintiff all real property located at Teach's Point, Bath, as well as the family home and Waters Service Station; it gave the "Wonderland" property equally to Plaintiff and Patricia; it gave all remaining real property to Patricia; and it split the net proceeds of the Waters Trust equally between Plaintiff and Patricia. According to Plaintiff, when Mr. Waters became sick in 2002, Mrs. Waters asked Plaintiff and his wife, Daisy Leigh, to help run Waters Service Station and told him to move into the house at Teach's Point to help out and also because he would eventually be inheriting the property.

Upon Mr. Waters' death on 25 January 2007, the Waters Trust contained the following pertinent real property assets, although the date on which the value reflected was determined is not apparent from the record on appeal:

Description

Acreage

Tax Value

Family Home on NC 32N

.62

$90,166

Store and Barns on NC 32N

3.24

$60,463

1 block "Wonderland"

39.94

$86,462

72.87

$157,223

294.19

$635,451

74.50

$160,741

120.97

$260,133

Lots 15 & 16 Teach's Point

0.00

$171,868

Lot 17 Teach's Point

$31,701

Lot 1 Teach's Point Phase II

$23,400

In early April 2007, Mrs. Waters consulted again with Attorney Neighbors to amend the Waters Trust. Although the briefs are silent as to Mrs. Waters' motivation for this amendment, materials in the record suggest around this time the relationship between Mrs. Waters and Plaintiff turned sour. Whatever her motivation, Mrs. Waters amended the Waters Trust on 11 April 2007 by eliminating Plaintiff as a beneficiary of the real property located at Teach's Point and substituting in lieu thereof his two children, Erica and Madison. Additionally, this amendment eliminated Plaintiff as a potential beneficiary of the family home and Waters Service Station and substituted in lieu thereof his sister, Patricia.

On 23 May 2007, Mrs. Waters consulted with a new attorney, Charles Edwards ("Attorney Edwards"), to discuss terminating Plaintiff and Daisy's occupancy of Teach's Point and Waters Service Station. Shortly thereafter, Mrs. Waters initiated a summary ejectment action against Plaintiff and Daisy to remove them from Waters Service Station and the property at Teach's Point; around the same time, Plaintiff sued his mother for alleged improvements to the property located at Teach's Point. In June 2007, during a meeting with Attorney Edwards concerning this litigation against Plaintiff, Mrs. Waters decided to make another amendment to the Waters Trust detrimental to Plaintiff. Rather than consult with Attorney Neighbors to draft this amendment, Mrs. Waters sought Attorney Edwards' legal services. Indeed, Mrs. Waters subsequently consulted with Attorney Edwards several times over the next few years for additional estate planning.

On 18 June 2007, Mrs. Waters amended the Waters Trust to "purposefully and intentionally remove [Plaintiff] as a beneficiary[,]" as well as remove Plaintiff as alternate successor trustee of the Waters Trust. This amendment also gave all real property located at Teach's Point to Patricia, as trustee, to hold in trust for the benefit of Plaintiff's children, Erica and Madison Waters, until they reached adulthood. Additionally, this amendment removed Plaintiff's beneficial interest in the "Wonderland" property and gave it fully to Patricia.

Around June 2008, Mrs. Waters amended the Waters Trust to remove Erica and Madison Waters as beneficiaries of the Teach's Point property and substituted Patricia in their stead. Additionally, this amendment gave all real property located on N.C.

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Cite This Page — Counsel Stack

Bluebook (online)
775 S.E.2d 925, 242 N.C. App. 253, 2015 WL 4081948, 2015 N.C. App. LEXIS 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waters-v-peaks-ncctapp-2015.