In re: The William C. Hansen and Verna Hansen Trust, Dated December 15, 1997

Summary

The North Dakota Supreme Court held that amendments to the William C. Hansen and Verna Hansen Trust executed by an agent under a power of attorney were invalid. Under N.D.C.C. § 59-14-02(5), an agent must have express authorization in the trust or power of attorney to amend a trust, and the general powers granted to Verna Hansen did not satisfy that requirement. The court reversed and remanded for a declaration of beneficiary rights under the original trust terms.

Holdings

1. N.D.C.C. § 59-14-02(5) applies to this proceeding because N.D.C.C. § 59-19-02(1)(b) makes chapter 59-14 applicable to judicial proceedings concerning trusts commenced after July 31, 2007.
2. The amendments to the trust executed by Verna Hansen as William C. Hansen's agent were invalid because neither the trust nor the power of attorney expressly authorized her to amend William's separate trust.

Questions Presented

1. Whether N.D.C.C. § 59-14-02(5)'s requirement of express authorization for an agent acting under a power of attorney to amend a trust applied to this proceeding.
2. Whether the trust agreement or power of attorney expressly authorized Verna Hansen to amend William C. Hansen's separate trust.
3. Whether the court needed to decide the application of the statutory antilapse provision to the amended trust terms after determining that the amendments were invalid.

Disposition

reversed_and_remanded