Opinion by Justice CARTER.
This is an appeal from a summary judgment in a declaratory judgment action which sought construction of the wills of C.M. Beckett, Sr., and Jo B. Beckett. The central issue is the distribution of assets of two separate terminated trusts. We find the wills require that each surviving heir is entitled to receive an equal share of the two trusts. We reverse and render the judgment of the trial court.
In 1957, C.M. Beckett, Sr., and his wife, Jo B. Beckett, each made wills establishing trusts for their two sons, C.M. Beckett, Jr., and Jerry B. Beckett. Each will provided for the equal division of estate assets between C.M., Jr. and Jerry, in trust, with
The trusts were to continue for the life of C.M. Beckett, Sr., Jo B. Beckett, and their two sons. Upon the death of C.M. Beckett, Sr., and Jo B. Beckett and
After C.M., Sr. and Jo passed away in 1962,
Thereafter, C.M., Jr. distributed certain assets of the C.M. Beckett, Jr. Trust to himself.
Beverly Beckett was Jerry's sole surviving child when he passed away in 1986. Beverly's son, Brian Beckett, and Regions Morgan Keegan Bank are the successor co-trustees of the Jerry B. Beckett Trust.
When C.M., Jr. passed away on April 25, 2007, he had one surviving child—Clint Murl Beckett, III, and one grandchild— Texie Beckett Carson Nash (the daughter of Jo Lynne Beckett Dyke, who predeceased her father, C.M., Jr.). Texie was appointed independent executrix of C.M.,
The trusts terminated as of April 25, 2007, the date of the last to die of Jerry and C.M., Jr. Thereafter, Texie filed a lawsuit seeking a declaratory judgment that all of the trusts' assets should be distributed equally to Texie, Clint, III, and Beverly.
In his competing declaratory judgment action to construe the C.M. Beckett, Jr. and Jerry B. Beckett Trusts, Brian maintained that Beverly is the sole beneficiary of the Jerry B. Beckett Trust and Texie and Clint, III, are the sole beneficiaries of the C.M. Beckett, Jr. Trust.
The competing declaratory judgment actions were consolidated in 2008. Thereafter, Texie and Beverly filed competing motions for partial summary judgment, each of which was denied by the trial court.
On appeal, Texie asserts three points of error. Her first and third appellate points complain of the summary judgment in Beverly's favor and the trial court's failure to grant summary judgment in her favor, or alternatively, its failure to find genuine fact issues regarding interpretation of the will. Texie's second appellate point complains of the denial of her summary judgment motion on Beverly's affirmative defenses.
We review declaratory judgments under the same standards as other judgments and decrees. TEX. CIV. PRAC. & REM.CODE ANN. § 37.010 (West 2008); Armstrong v. Hixon, 206 S.W.3d 175, 179 (Tex.App.-Corpus Christi 2006, pet. denied). We look to the procedure used to resolve the issue at trial to determine the standard of review on appeal. Armstrong, 206 S.W.3d at 179; Guthery v. Taylor, 112 S.W.3d 715, 720 (Tex.App.-Houston [14th Dist.] 2003, no pet.). Here, the trial court determined the declaratory judgment issue through summary judgment proceedings.
A traditional motion for summary judgment is granted only when the movant establishes there are no genuine issues of material fact and it is entitled to judgment as a matter of law. Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844, 848 (Tex.2009). An appellate court reviews de novo the grant or denial of a motion for summary judgment. Id. Where, as here, both parties file dispositive cross motions for summary judgment, and the court grants one and overrules the other, the appellate court has jurisdiction to review both the grant and the denial. Tex. Mun. Power Agency v. Pub. Util. Comm'n of Tex., 253 S.W.3d 184, 192 (Tex. 2007). In such a case, the appellate court is to review the summary judgment evidence presented by each party, determine all questions presented, and render judgment as the trial court should have rendered. Id.; Comm'rs Court v. Agan, 940 S.W.2d 77, 81 (Tex.1997); Harris v. Hines, 137 S.W.3d 898, 902-03 (Tex.App.-Texarkana 2004, no pet.).
Our chief concern in construing a will is to ascertain the true intent of the
"If the will is unambiguous, [we will] not go beyond specific terms in search of the [testator's] intent." Id. If the instrument "can be given a certain or definite legal meaning or interpretation, then it is not ambiguous and the court will construe [it] as a matter of law." Coker v. Coker, 650 S.W.2d 391, 393 (Tex.1983); Doggett v. Robinson, 345 S.W.3d 94, 99 (Tex.App.-Houston [14th Dist.] 2011, no pet.).
If, on the other hand, the meaning of the instrument is uncertain or reasonably susceptible to more than one meaning, it is ambiguous and extrinsic evidence should be considered to ascertain the testator's intent. See Davis v. Shanks, 898 S.W.2d 285, 286 (Tex.1995); Harris, 137 S.W.3d at 902-03. A will is ambiguous only when the established rules of construction leave its terms susceptible to more than one reasonable meaning. Steger v. Muenster Drilling Co., 134 S.W.3d 359, 373 (Tex.App.-Fort Worth 2003, pet. denied).
The core issue we must decide is whether the will provides that the corpus of each separate trust—for C.M., Jr. and for Jerry—is to be divided into three equal shares for Beverly, Texie, and Clint, III, or whether the will directs the respective trust assets to pass directly to the descendants of the son in whose name each trust was established.
The testators' last wills
Indeed, the will establishes two separate trusts:
There is no question a trust was established in the name of C.M., Jr., and a separate trust was established in Jerry's name, each of which was funded with one-half of the residue of Mr. and Mrs. Beckett's respective estates. However, the establishment of separate trusts with the provision of income to each son for life does not answer the question of the correct distribution of the corpus of each trust upon the death of C.M., Jr. (the last to die).
Texie points to Section VI(b) in support of her position that the corpus of each trust is to be divided equally among the grandchildren/great-grandchildren:
Texie specifically relies on the language to the effect that "all of the assets and properties of the trusts herein created shall be divided into as many equal shares as there are children of my two sons surviving...." Even though two separate trusts were created and the income from each was separately paid during the lifetimes of the two brothers, upon the death of the last of the surviving brothers, Texie maintains Section VI(b)
It is clear that all trust assets are to be divided.
Texie also relies on the termination provision in support of her interpretation— i.e., neither trust terminates until the death of the last surviving son.
Beverly relies on the will's power of appointment
Beverly reads the power of appointment to apply only to the trust corpus of each separate trust, so that Jerry would have a power of appointment only over the corpus of the trust established in his name, and C.M., Jr. would have a power of appointment only over the corpus of the trust established in his name. If, in fact, the power was so restricted, its inclusion in the will would lend support to Beverly's position that she is entitled to 100 percent of the assets of Jerry's trust.
However, the power is not restricted in the manner Beverly suggests. It is limited only to "the portion of the estate" that each son's "children and grandchildren would otherwise be entitled to receive." It does not answer the question of what portion of the estate each son's children and grandchildren are entitled to receive. The description of the target of the power does not contradict the plain language of the will stating that "all of the assets and properties of the trusts herein created shall be divided into as many equal shares as there are children of my two sons surviving...."
When C.M., Jr. made his will, he chose to exercise the power of appointment, while Jerry did not.
Beverly further relies on the perpetuities clause
There is no dispute the trusts did not terminate in accordance with this clause. However, in the event the foregoing clause acted to terminate the trusts, Beverly correctly recognizes the trust assets in Jerry's trust would have gone to her, as the sole income beneficiary of that trust. This provision—dividing the collective assets of each particular trust among those parties who are the income beneficiaries of each trust—appears to reflect the intent that the corpus of each trust be devised to the descendants of the original income beneficiary of that trust. Said another way, it
Even so, it is the testator's prerogative to include differing dispositive language in a provision which terminates the trusts in accordance with the perpetuities clause from the dispositive language of the last to die provision under which the trusts were actually terminated. The perpetuities clause does not contradict the dispositive language terminating the trusts and directing how the assets should be distributed. The inclusion of this clause provided an alternate method of asset distribution in the circumstance the trusts were terminated in accordance with its provisions. The trusts terminated at the death of the last survivor of the testators and their two sons, not because of this provision. Further, due to the manner in which the will was drafted, this clause could not have been dispositive. Because the trusts have already terminated, and this clause only addresses distribution of trust assets in the event they have not terminated within the time frame set forth in the rule against perpetuities, it is not relevant to the issue of how the trust assets are to be divided.
Texie and Beverly each maintain the will is reasonably susceptible only to one meaning. Texie claims the definite or certain meaning of the will is clear—that the corpus of each trust should be divided in three, equal shares. Conversely, Beverly claims the definite or certain meaning of the will is clear—that the corpus of each trust is devised only to the children/grandchildren of the son in whose name the trust was established.
All rules of will construction must yield to the basic intention and purpose of the testator as reflected by the entire instrument. Wright v. Greenberg, 2 S.W.3d 666, 672 (Tex.App.-Houston [14th Dist.] 1999, pet. denied) (citing Shriner's Hosp. for Crippled Children of Tex. v. Stahl, 610 S.W.2d 147, 151 (Tex.1980)). Here, the plain language of Section VI(b), together with the termination clause, reflects the clear intent to divide each trust corpus into equal shares for the testator's grandchildren and/or great-grandchildren. The trial court therefore erred in granting Beverly's motion for summary judgment.
Texie sought summary judgment on each of the affirmative defenses asserted in Beverly's answer, pursuant to Rules 166a(c) and 166(a)(i) of the Texas Rules of Civil Procedure.
Because she has demonstrated there are no material fact issues on the elements of her claim, Texie is entitled to summary judgment unless Beverly comes forward with a showing that there is a disputed fact issue upon affirmative defense.
Beverly relies on the equitable affirmative defenses of judicial estoppel, estoppel by deed, equitable estoppel, waiver and quasi-estoppel.
Judicial estoppel requires a showing of (1) a sworn, inconsistent statement made in a prior judicial proceeding, (2) the party making the statement gained some advantage by it, (3) the statement was not made inadvertently or because of mistake, fraud, or duress, and (4) the statement was deliberate, clear, and unequivocal. Galley v. Apollo Associated Servs., 177 S.W.3d 523, 528-29 (Tex.App.-Houston [1st Dist.] 2005, no pet.). "The doctrine of judicial estoppel `precludes a party from adopting a position inconsistent with one that it maintained successfully in an earlier proceeding.'" Pleasant Glade Assembly of God v. Schubert, 264 S.W.3d 1, 6 (Tex. 2008) (quoting 2 ROY W. MCDONALD & ELAINE G. CARLSON, Texas Civil Practice § 9.51 at 576 (2d ed. 2003)).
This affirmative defense is based on the inventory, appraisal and list of claims Texie filed as the executrix of C.M., Jr.'s estate.
Texie claims that a listing of trust properties on the inventory does not reflect any position she may have taken regarding the identity of the beneficiaries of the assets of C.M., Jr's trust. The dispute here is not the identification of property to be distributed from the trusts, but is the identification of the ultimate beneficiaries and the percentage of trust assets each is to receive. We find nothing in the inventory, appraisal, and list of claims demonstrating a clear and unequivocal statement that is inconsistent with an assertion that the trusts are to be divided evenly by the beneficiaries. Beverly has failed to raise a material fact issue relative to this affirmative defense.
This affirmative defense prevents a party from denying the truth of matters set forth in a deed the party has offered as grantor or has accepted as grantee. Greene v. White, 137 Tex. 361, 153 S.W.2d 575, 583 (1941). This concept "stands for the general proposition that `all parties to a deed are bound by the recitals therein, which operate as an estoppel, working on the interest in the land if it be a deed of conveyance, and binding both parties and privies. . . .'" Angell v. Bailey, 225 S.W.3d 834, 841 (Tex.App.-El Paso 2007, no pet.). Estoppel by deed may be involved only in a suit on the deed or concerning a right arising from the deed. See Perry Nat'l Bank v. Eidson, 161 Tex. 340, 340 S.W.2d 483, 486 (1960).
Beverly contends that C.M., Jr. treated those properties in the C.M., Jr. trust as belonging to himself or his lineal descendants because he deeded several such properties to others, as well as to himself.
The affirmative defense of equitable estoppel requires a showing of (1) a false representation or concealment of material facts, (2) made with actual or constructive knowledge of those facts, (3) to a party without knowledge, or the means of knowledge, of those facts, (4) with the intention that it should be acted on, and (5) the party to whom it was made must have relied or acted on it to his or her prejudice. In re A.L.G., 229 S.W.3d 783, 786 (Tex. App.-San Antonio 2007, no pet.).
Beverly incorporated equitable estoppel (as well as quasi-estoppel) in her motion for summary judgment. The equitable estoppel argument is based on the actions of C.M., Jr. in transferring assets from the C.M. Beckett, Jr. Trust.
The affirmative defense of waiver requires a showing of (1) an existing right, benefit, or advantage, (2) actual or constructive notice of its existence, and (3) an actual intent to relinquish that right. Hourani v. Katzen, 305 S.W.3d 239, 256 (Tex.App.-Houston [1st Dist.] 2009, pet. denied).
Beverly relies on the inventory, appraisal, and list of claims in support of this affirmative defense, but fails to explain why this evidence supports this affirmative defense. Beverly has failed to raise a fact issue with respect to the affirmative defense of waiver.
The affirmative defense of quasi-estoppel precludes another party from asserting, to another's disadvantage, a right inconsistent with a position he or she has previously taken. Lopez v. Munoz, Hockema & Reed, L.L.P., 22 S.W.3d 857, 864 (Tex.2000). The doctrine applies when it would be unconscionable to allow a party to maintain a position inconsistent with one in which he or she acquired or by which that party accepted a benefit. In re Estate of Webb, 266 S.W.3d 544, 552 (Tex. App.-Fort Worth 2008, pet. denied); Vessels v. Anschutz Corp., 823 S.W.2d 762, 765-66 (Tex.App.-Texarkana 1992, writ denied). However, before the acceptance of benefits can trigger estoppel, it must be shown that the benefits were accepted with knowledge of all material facts. Anadarko Petroleum Corp. v. Thompson, 60 S.W.3d 134, 142 (Tex.App.-Amarillo 2000), rev'd on other grounds, 94 S.W.3d 550 (Tex.2002); see Frazier v. Wynn, 472 S.W.2d 750, 753 (Tex.1971).
Beverly alleged quasi-estoppel as an affirmative defense and further asserted this equitable theory as a basis for summary judgment.
In her motion for summary judgment, Beverly relies on the following evidence in support of her quasi-estoppel argument: (1) C.M., Jr.'s will, (2) application for probate of C.M., Jr.'s will, (3) order admitting C.M. Jr.'s will to probate, and (4) the inventory, appraisal, and list of claims relative to C.M., Jr.'s estate. Beverly contends that because Texie already accepted assets belonging to C.M., Jr.'s trust, she is precluded from asserting rights to properties in Jerry's trust.
The power of appointment authorized C.M., Jr. to designate by his will, from their portion of the trust, the amount that each of his children and grandchildren would receive from the trust distribution. It also allowed him to impose terms and establish trusts in respect of such portions distributed. C.M., Jr.'s will specifically invoked the power of appointment and designated the portion bequeathed to Texie in
Texie contends nothing in the inventory addresses the identity of the Trusts' ultimate beneficiaries. Further, C.M., Jr.'s decision to invoke his power of appointment and bequeath certain assets to Texie does not reflect any prior position Texie may have taken regarding the identity of the Trusts' ultimate beneficiaries. Texie therefore contends that Beverly is unable to establish that Texie's present position is inconsistent with any earlier position she may have taken.
We cannot conclude Beverly has provided summary judgment evidence of her assertion that Texie has taken inconsistent positions such that it would be unconscionable to permit her to assert her contentions regarding the proper interpretation of the will. C.M., Jr.'s will clearly acknowledges the trust and the power granted to him by his parents' wills and attempted to invoke that power of appointment. As previously discussed, the inventory, appraisal, and list of claims do not reflect any position Texie may have taken regarding the identity of the beneficiaries of the assets of C.M., Jr.'s trust. Further, there is no summary judgment evidence that Texie has actually accepted benefits. Even if Texie received such a bequest, Texie has never asserted that she has no interest in the Jerry B. Beckett Trust or that Beverly is not entitled to a portion of the C.M. Beckett, Jr. Trust. The decision to attempt to utilize the power of appointment to distribute trust holdings to Texie and Clint, III was that of C.M., Jr., and would not reflect Texie's position regarding the proper distribution of trust assets. Consequently, we cannot say that Beverly has carried the burden on appeal to illustrate the existence of a material fact issue with regard to the defense of quasi-estoppel.
Even assuming, as Beverly argues, that Texie received property which formerly belonged to the C.M. Beckett, Jr. Trust, quasi-estoppel is not applicable here. Estoppel is defensive in nature. Hruska v. First State Bank, 747 S.W.2d 783, 785 (Tex.1988). That is, it exists to prevent the loss of existing rights, not to create them. Id. As previously discussed, the will provides that each grandchild/great-grandchild is to receive an equal share of both trusts. The termination provisions of the trusts entitle Texie, Beverly, and Clint, III to one-third of the assets of Jerry's trust and one-third of the assets of C.M., Jr.'s trust. The doctrine of quasi-estoppel cannot be invoked defensively to create rights that do not exist otherwise—i.e., that Beverly receive
We reverse the judgment of the trial court and render judgment in favor of Texie. Beverly, Texie, and Clint, III are each entitled to an equal share of the Jerry B. Beckett Trust and the C.M. Beckett, Jr. Trust. This opinion does not purport to resolve any issues severed by the trial court.
Beverly refers to the foregoing issues as the "distribution issue" in her motion to sever. In its severance order, the trial court
Beverly therefore maintains that because recombination of trust assets occurs only in this limited circumstance, Texie's reading of the will is incorrect. Texie, however, does not contend the assets of the two trusts should be combined and then divided three ways. Rather, she contends the trust assets of each trust be divided into three shares.
TEX. PROP.CODE ANN. § 112.036 (West 2007).
Real Estate 203,360.60 Stocks and Bonds 71,360.46 Mortgages, Notes and Cash 53,305.49 Miscellaneous property 22,000.00 Total 350,026.55
No claims due or owing to the estate were listed.
(1) 10-27-1992: Warranty Deed from C.M. Beckett, Jr. as Trustee of the C.M. Beckett, Jr. Trust to George and Annamarie Whaley— transferring a lot, tract or parcel of land situated in Harrison County;
(2) 2-11-1994: Warranty Deed from C.M. Beckett, Jr. as Trustee of the C.M. Beckett, Jr. Trust to George and Annamarie Whaley— transferring a lot, tract, or parcel of land situated in Harrison County;
(3) 2-11-1994: Warranty Deed from C.M. Beckett, Jr. as Trustee of the C.M. Beckett, Jr. Trust to George Whaley—transferring a lot, tract, or parcel of land situated in Harrison County (.913 acres of land);
(4) 2-9-1996: Warranty Deed from C.M. Beckett, Jr. as Trustee of the C.M. Beckett, Jr. Trust to C.M. Beckett, Jr.—transferring parcel of land containing 3.215 acres in Harrison County.
(5) 12-10-1999: Warranty Deed from C.M. Beckett, Jr. as Trustee of the C.M. Beckett, Jr. Trust to C.M. Beckett, Jr.—transferring two parcels of land situated in Harrison County.
(6) 3-17-2003: Warranty Deed from C.M. Beckett, Jr. as Trustee of the C.M. Beckett, Jr. Trust to George and Annamarie Whaley— transferring (either .725 or 7.25) acres of land situated in Harrison County.
We point out that C.M., Jr., as the trustee of the C.M. Beckett, Jr. Trust, was authorized to transfer trust property. There is no evidence in the record reflecting the disposition of the proceeds of the referenced transfers.