MUNFORD R. YATES, JR., ESQUIRE, AS ADMINISTRATOR FOR THE ESTATE OF NANCY E. GORMLEY, A/K/A NANCY ELAINE GORMLEY, APPELLANT,
v.
THE HONORABLE JOHN D. WESSEL, APPELLEE
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The administrator of Nancy Gormley's estate appeals an order that refused to distribute trust assets and closed a guardianship estate. The court reverses, holding that the trust terminated upon the death of the settlor's surviving spouse ten years before the guardianship petition, entitling Gormley to the property.
The court reversed and remanded, holding that the trust terminated upon the death of Dorothy Guelzow (the surviving settlor), ten years before the guardianship petition was filed, and that under the trust instrument the property was to be distributed to Gormley at that time. The property should pass through Gormley's estate.
[1] A trust's duration is governed by the terms of the trust instrument.
[2] Upon the death of the last grantor, trust assets designated for distribution to a beneficiary should pass through the beneficiary's estate if the beneficiary is deceased.
Previewing 2 of 5 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“The duration of a trust is governed by the trust instrument.”
Establishes the governing legal principle that controls how long a trust lasts and when distribution occurs.
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Join FLexlaw to unlock all legal intelligenceAdelbert and Dorothy Guelzow established a trust to provide for their care and, upon their deaths, to distribute assets to their daughter Nancy Gormle…
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KLEIN, J.
Appellant, the administrator of the estate of Nancy Gormley, appeals an order refusing to distribute assets of a trust and closing a guardianship estate. We reverse.
Years ago Adelbert and Dorothy Guel-zow set up a trust to provide for their care for the remainder of their lives and upon their deaths to be distributed to their daughter, Nancy Gormley. By 1990 both of the Guelzows were deceased; however, two parcels of property located in Palm Beach County which were assets of the trust remained in the name of the trust.
In 1999 Gormley, a resident of Virginia, was declared incapacitated, and a Virginia attorney, M. Garey Eakes, was appointed guardian of her property. Eakes filed a petition in Palm Beach County requesting appointment as a foreign guardian to manage the property of the ward in Florida and asking the court to convey the real property that was still titled in the trust to himself as guardian. The lower court entered an order appointing Eakes.
The guardian then filed an amended petition asking for permission to distribute the assets of what he referred to as the terminated Guelzow trust. The trial court, on its own, denied the petition to distribute the trust property on grounds that the petition filed by attorney Eakes had falsely indicated that the property belonged to Gormley when in fact it remained part of the trust established by Gormley’s parents. The court also determined that the earlier order appointing Eakes as guardian of the property of Gormley was void and, on its own, closed the guardianship estate. Eakes has appealed those rulings, pointing out that at the time Eakes filed the initial petition in Florida he did not know that the property was still legally titled in the name of the trust.1
The duration of a trust is governed by the trust instrument. Ginsburg v. Katz, 303 So. 2d 340 (Fla. 3d DCA 1974.) This trust terminated ten years ago upon the death of Dorothy Guelzow, at which time, under the trust, the property was to be distributed to Gormley. We therefore reverse and remand for the trial court to grant relief consistent with this opinion, so that the property can pass through Gorm-ley’s estate.
GROSS and TAYLOR, JJ., concur. . After the appeal was filed Gormley died and the administrator of her estate, Mumford Yates, Jr., was substituted as the proper party to the appeal.
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Minassian v. Rachins, 152 So. 3d 719 (Fla. 4th DCA 2014)…17, Fla. Stat. (2008) (“Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to the property....”); see, e.g., Yates v. Wessel, 775 So. 2d 993, 994 (Fla. 4th DCA 2000) (noting “[t]he duration of a trust is governed by the trust instrument,” and interpreting the trust as terminating on death of settlors, “at which time, under the trust, the property was to be distributed to” their daughter)…
Authorities Cited
- Ginsburg v. Katz, 303 So. 2d 340 (Fla. 3d DCA 1974)