Paula Minassian v. Rebecca Rachins and Rick Minassian

Summary

The Florida Fourth District Court of Appeal held that a trust instrument was ambiguous regarding whether separate trusts for the settlor’s children were to be created after the surviving spouse’s death. It further held that Florida law permitted the appointment of a trust protector with authority to modify trust terms and that the protector’s amendments were valid because they effectuated the settlor’s probable wishes.

Holdings

1. Florida law permits a trust instrument to confer on a trust protector or other person the power to direct modification of the trust under section 736.0808(3), Florida Statutes.
2. The trust instrument was patently ambiguous as to whether the Family Trust terminated at the wife's death and whether the children were to receive new trusts or shares in the existing Family Trust.
3. Because the trust was patently ambiguous, the court could consider uncontradicted extrinsic evidence of the settlor's intent. The trust protector acted within his powers by amending the trust to resolve the ambiguity and further the settlor's probable wishes, even though the amendment disadvantaged particular beneficiaries.
4. The court had jurisdiction under Florida Rule of Appellate Procedure 9.110(k) to review the trust-amendment issue because it was separate from the initial issues and arose after the original complaint was filed.

Questions Presented

1. Whether Florida law permits a trust instrument to authorize a trust protector or other nontrustee to modify the trust.
2. Whether the trust instrument was ambiguous concerning whether the Family Trust terminated upon the surviving spouse's death and whether new trusts were then created for the children.
3. Whether the trust protector acted within the authority granted by the trust when he amended the trust to resolve the ambiguity and effectuate the settlor's probable wishes.
4. Whether the appellate court had jurisdiction under Florida Rule of Appellate Procedure 9.110(k) to review the trust-amendment issue separately from the remaining issues in the case.

Disposition

reversed_and_remanded