Wils v. Robinson

934 S.W.2d 774, 1996 WL 544395
CourtCourt of Appeals of Texas
DecidedDecember 5, 1996
Docket14-95-00909-CV
StatusPublished
Cited by14 cases

This text of 934 S.W.2d 774 (Wils v. Robinson) 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
Wils v. Robinson, 934 S.W.2d 774, 1996 WL 544395 (Tex. Ct. App. 1996).

Opinion

OPINION

O’NEILL, Judge.

This is an appeal from a judgment rescinding and terminating a trust upon application of its settlor and primary beneficiary, George A. Robinson, IV. Helen B. Wils, the attorney ad litem appointed to represent the interests of the unborn, minors, and other contingent beneficiaries of the trust, brings this appeal challenging the trial court’s judgment. We reverse and render.

Background

On December 30, 1986, George A. Robinson and his attorney, Joe E. Coleman, attended a meeting at the law offices of Fulbright & Jaworski to sign documents reflecting the settlement of a family dispute between Robinson, his mother, and his brother. During the meeting, Robinson signed all of the documents presented to him by Coleman, allegedly without reading them. Among the documents presented by Coleman was a trust agreement creating the George A. Robinson Irrevocable Grantor Trust No. 6 (the Trust). 1 The Trust was created with property that belonged solely to Robinson. The corpus of the Trust is valued at approximately $1.356 million and is comprised of real property, *777 limited partnerships, cash equivalents, and royalty interests.'

At the time Robinson signed the trust agreement, he was twenty-seven years old, mentally competent, and not otherwise impaired. Robinson testified he did not read the trust agreement before signing it, but acknowledged that no one prevented him from reading the trust agreement. He further testified that Coleman did not explain it to him, and that he relied on Coleman to represent his interests.

As a result of signing the trust agreement, Robinson gave up ownership and control of his property and created a Trust that eventually earned Coleman and his firm over $60,-000 in legal fees. Robinson, the purported settlor and primary beneficiary, claims he obtained no substantial benefit from the creation of the Trust, although he did receive income from the Trust. In 1992, Robinson brought suit against Coleman, which resulted in a settlement whereby Henry J.N. Taub, II, was appointed by the court as substitute trustee to take the place of Coleman. Robinson did not contest the validity of the Trust in that action. Robinson took no action to revoke the Trust or dispute its validity until this suit was filed in 1994, eight years after the creation of the Trust.

After an evidentiary hearing, the trial court entered judgment in favor of Robinson concluding that the Trust should be terminated and rescinded. On request, the trial court filed Findings of Fact and Conclusions of Law, but refused the ad litem’s request for additional findings and conclusions. In six points of error, Wils contends the trial court erred in finding that the Trust should be terminated or rescinded.

Termination

In her first point of error, Wils contends the trial court erred in terminating the Trust under § 112.054(a)(2) of the Texas Property (Trust) Code.

A settlor may terminate a trust unless it is irrevocable by the express terms of the instrument creating it or of an instrument modifying it. Tex. Prop.Code Ann. § 112.051 (Vernon 1995); Citizens Nat’l Bank v. Allen, 575 S.W.2d 654, 657 (Tex.Civ.App. — Eastland 1978, writ ref d n.r.e.). Irre-vocability of a trust must be shown by the terms and language of the trust instrument creating the trust or by a supplement or amendment, and not by inference or implication. McCauley v. Simmer, 336 S.W.2d 872, 881 (Tex.Civ.App. — Houston 1960, writ dism’d). It is undisputed that the terms and language of the Trust make it irrevocable. Specifically, the trust agreement states:

That I, GEORGE A. ROBINSON, ... have irrevocably granted, conveyed, assigned, transferred and delivered, and by these presents do irrevocably grant, convey, assign, transfer and deliver to ... TRUSTEES, their successors and assigns, as Trustees, the property described ... hereinafter called the trust property. TO HAVE AND TO HOLD the trust property, ... forever.
This transfer is IN TRUST, NEVERTHELESS, and the property so irrevocably conveyed shall be held, administered and distributed by the Trustees upon the terms and conditions hereinafter set forth.
ARTICLE XVII
This Indenture of Trust shall be irrevocable and shall vest in the Trustees all right, title and interest in and to the properties deposited hereunder. The Donor reserves to himself no right to alter or amend or revoke in any manner this Indenture of Trust.

(emphasis added).

Though a trust is irrevocable by its terms, it may still be terminated in whole or in part if:

(1) the purposes of the trust have been fulfilled or have become illegal or impossible to fulfill; or
(2) because of circumstances not known to or anticipated by the settlor, compliance with the terms of the trust would defeat or substantially impair the accomplishment of the purposes of the trust.

Tex. Prop.Code Ann. § 112.054(a)(1) & (2) (Vernon 1995). Relying upon this statute, the trial court found that “the George A. *778 Robinson Irrevocable Grantor Trust No. 6 should be terminated ... because the circumstances not known to or anticipated by the Settlor would defeat or substantially impair the accomplishment of the purposes of the trust.” This conclusion is based upon the trial court’s finding of fact number eighteen:

Since Mr. Robinson did not intend that a Trust be created and the property in the Trust is not protected from creditors of Mr. Robinson, the Trust had no purpose and, therefore, the purpose has been frustrated.

The trial court apparently concluded that, because Robinson purportedly did not know he was creating a trust, the Trust had no purpose and could be terminated under § 112.054(a)(2). We disagree with the trial court’s application of § 112.054(a)(2). 2

The trust agreement provides that the Trust is to be held and administered for Robinson’s benefit during his lifetime. One-half of the net income from the Trust is to be paid to Robinson during his lifetime. The remaining half is to be paid to Robinson for his benefit at the discretion of the trustees, and any income not distributed is to be added to the corpus of the Trust. The Trust terminates twenty-one years after the death of Robinson’s mother, Josephine Abercrom-bie, or upon Robinson’s death, whichever occurs first. If Robinson survives twenty-one years after the death of his mother, the principal and income of the Trust are to be paid to him.

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Cite This Page — Counsel Stack

Bluebook (online)
934 S.W.2d 774, 1996 WL 544395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wils-v-robinson-texapp-1996.