Funsten v. Wells Fargo Bank

Trust I, established by Maryon and Robert, became irrevocable when Maryon died in 1994. Robert died in 2013. Months later, Maryon’s son, Funsten, filed a “safe harbor” application, requesting a declaration that he would not violate a “no-contest” clause in Trust I by filing a petition to establish that he is its sole successor trustee, notwithstanding that Robert designated an additional co-successor trustee after Maryon died. The probate court denied the application. The executors of Robert's probate estate sought a determination that Funsten violated no-contest clauses in Trust I and in Robert’s will by filing creditor’s claims against Robert’s probate estate to recover damages for the allegedly improper removal of trust assets. The trial court found that Funsten’s conduct constituted a contest of Robert’s will, but did not constitute a contest under Trust I. The court of appeal held that Funsten was not entitled to a ruling on the merits of his safe harbor application because that statutory procedure has not been available since former Probate Code section 21320 was repealed in 2010. The probate court correctly found that Funsten did not violate the Trust I no-contest clause by filing creditor’s claims against Robert’s probate estate, but erred by finding a contest of Robert’s will. Funsten is not a beneficiary of Robert’s will and could not have violated the no-contest clause in that instrument as a matter of law. View "Funsten v. Wells Fargo Bank" on Justia Law