Ellsworth v. Huffstatler
| Decision Date | 20 October 2016 |
| Docket Number | No. 20150478–CA,20150478–CA |
| Parties | Andrew L. ELLSWORTH, Mark L. Ellsworth, Michelle Thomas, Ken L. Ellsworth, Tami Jasper, Tim Ellsworth, and the Ellsworth Family Trust, Appellants, v. Terry HUFFSTATLER, Jim Huffstatler, Karl V. Baker, Keith A. Baker, the Estate of Barbara May Ellsworth, the Ellsworth Family Trust, and the Barbara May Ellsworth Trust, Appellees. |
| Court | Utah Court of Appeals |
Brett D. Cragun, Salt Lake City, Attorney for Appellants.
Douglas B. Thayer and Aaron R. Harris, Lehi, Attorneys for Appellees.
Opinion
¶1 This is a will dispute between the biological children of one spouse—Elmer Ellsworth—and the biological children of the other—Barbara May Ellsworth. We refer to the former as the Ellsworths and the latter as the Huffstatlers. The first question on appeal concerns certain gold, silver, and platinum coins (the Coins) Elmer owned at his death; the district court ruled on summary judgment that these Coins passed to Barbara under Elmer's will. The second question on appeal concerns whether one of Barbara's children, Terry Huffstatler, exerted undue influence over Barbara when Barbara altered her estate plan shortly before she died. The district court ruled, after a bench trial, that Terry did not. The Ellsworths challenge both rulings. We affirm.1
¶2 Spouses Elmer Ellsworth and Barbara May Ellsworth executed a trust agreement in 1991 (the 1991 Trust). The 1991 Trust named Elmer and Barbara as primary beneficiaries, and it named Elmer's seven biological children and Barbara's three biological children as contingent beneficiaries. Elmer also executed a will.
¶3 Elmer, the owner of the Coins, died in 2003. His will devised to Barbara all of his personal property "as hereinafter defined":
The will also defined and disposed of Elmer's "residuary estate":
Elmer's will was never probated. The Coins remained in a safe in Barbara's home until 2012, when Terry Huffstatler and Mark Ellsworth placed them in a bank safety deposit box.
¶4 In the years before her death, Barbara's physical and mental health waned. As a result, she increasingly relied on her daughter, Terry, for her care. In November 2012, Barbara suffered a fall that required her to undergo surgery and begin taking prescription medication. Medical records show that after the fall Barbara was often "forgetful," was "disoriented as to time and place," was "unable to manage her money," and "suffered from dementia
and memory loss"; but she was "alert and pleasant" and "otherwise doing well" during the months following her fall. Due to Barbara's declining health, she and Terry visited Barbara's estate planning attorney, who had drafted Elmer's will. The attorney suggested that Barbara sign an updated general power of attorney authorizing Terry to act for Barbara in her personal affairs.
¶5 Shortly after Barbara signed the power of attorney, Terry and Mark Ellsworth set up a meeting to review their probable future roles as co-trustees of the 1991 Trust. During the meeting, Terry told Mark that Barbara wanted to sell her home. Terry also told Mark about the power of attorney. Mark explained that he wanted to talk to his siblings about both matters.
¶6 After speaking with his siblings, Mark sent Terry an email on behalf of the Ellsworths. The email suggested that Barbara resign as the trustee of the 1991 Trust:
After receiving the email, Terry told Barbara about the email and explained that the Ellsworths wanted her to resign as trustee of the 1991 Trust. Terry did not show Barbara the email itself, however. Terry testified that Barbara "was very hurt that Mark would ask her to resign because ... she liked to be able to make choices for herself." Barbara suggested they talk to her lawyer, and Terry set up a meeting. Terry and the lawyer both testified that Barbara asked for the meeting because she took offense at Mark's assertion that she should resign as trustee. Barbara was also offended by the Ellsworths' alleged efforts to block the sale of her home.
¶7 Before meeting with the lawyer, Barbara and Terry visited Barbara's doctor. Terry testified that the purpose of the visit was to follow up on Barbara's recovery from her fall and to see if Barbara was "able to make self-care directives, and participate in an overall understanding of surroundings, and ability to participate in the decision making process." The doctor confirmed that Barbara suffered from confusion but concluded that "at this point she should be able to still manage her legal affairs but would have family available if needed should there be any changes." Her doctor also conducted a "Mini Mental Status Exam." Barbara scored mild or moderate cognitive impairment. The doctor noted, however, that Barbara was "overall still able to understand conversations" and be "an active participant in her care."
¶8 At the lawyer's office, Barbara stated that "she wanted different distribution provisions upon her death ... because she felt she was being treated unfairly by the Ellsworth children"; she also "wanted to know what she could do to make sure more of the assets went to her children rather than the Ellsworth children." The lawyer read Mark's email. Following the consultation, the lawyer drafted—and Barbara signed—a new set of estate planning documents. These included a will, a new power of attorney, and a new trust—the Barbara May Ellsworth Trust (the 2013 Trust). These documents transferred the Coins and half the property from the 1991 Trust into the 2013 Trust. The 2013 Trust documents named the Huffstatlers as the only beneficiaries. Under these documents, the Ellsworths were no longer in line to receive half of the property—including the Coins—they had expected to receive as secondary beneficiaries under the 1991 Trust.
¶9 A few days after Barbara executed the 2013 Trust, Mark and his sister, Tami Jasper, visited Barbara in her home to gauge whether she was open to the idea of resigning as trustee of the 1991 Trust. They took with them a resignation document. The parties dispute whether the visit was cordial or confrontational. Tami described Barbara as undecided until Tami appealed to Barbara's religious sensibilities. Barbara signed the resignation document. Barbara later revoked the resignation. But two months later, Barbara again resigned as the trustee of the 1991 Trust. Six months after that, Barbara died; at that time she suffered from advanced dementia.
¶10 The Ellsworths sued the Huffstatlers, seeking to recover the assets that Barbara had moved from the 1991 Trust to the 2013 Trust. The district court ruled on partial summary judgment that the Coins passed to Barbara under Elmer's will. As the owner of the Coins, the court ruled, Barbara was free to place them into the 2013 Trust for the sole benefit of her own children. The court conducted a bench trial on a number of remaining issues, including the issue of undue influence. After the bench trial, the court ruled that Barbara did not create her 2013 estate plan under Terry's undue influence. The Ellsworths appeal.
¶11 The Ellsworths assert two issues on appeal. First, they contend that the district court erred when it read Elmer's will to say "that Barbara is to receive Elmer's personal property which was not transferred to someone else or to the family trust."
¶12 Second, the Ellsworths contend that "the trial court erred when it determined that the creation of the 2013 Trust was fair and therefore the presumption of undue influence did not apply."
¶13 The Ellsworths challenge the district court's summary judgment ruling that the Coins passed to Barbara under Elmer's will. They argue that the court misapplied the Uniform Probate Code because it misread Elmer's will.
¶14 "An appellate court reviews a trial court's legal conclusions and ultimate grant or denial of summary judgment for correctness, and views the facts and all reasonable inferences drawn therefrom in the light most favorable to the nonmoving party." Orvis v. Johnson , 2008 UT 2, ¶ 6, 177 P.3d 600 (citations and internal quotation marks omitted).
¶15 Elmer's will was never probated. Under the Utah Uniform Probate Code, if a decedent's will is not probated within three years, the...
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