Cook v. Brateng, 262 P.3d 1228

Siblings John Cook and Diane Brateng are trustees/beneficiaries of Elmer Cook's living trust established in 1995, with Diane later sole trustee after Elmer was declared incompetent in 1997.
Diane moved Elmer from Ilwaco to her Kirkland home in 1997 to care for him; Elmer died in 2000.
Diane used trust funds (about $59,176.67) for Elmer's care and for maintaining/remodeling the Ilwaco home; an additional $20,319.75 was spent on home improvements.
The trust divided remaining assets after Elmer's death between Diane and John (9/20 each) and two charities; the Ilwaco home was left to Diane as part of her share.
John sued for an accounting and alleged Diane breached fiduciary duties by not informing him of deferring charges for care and not encumbering the Ilwaco home; the trial court found breach and limited Diane's compensation.
On appeal, the court held Diane did not breach duties, awarded compensation for caregiving and repairs, affirmed the 2007 appraised value of the Ilwaco house, and vacated John’s attorney-fee award, remanding for further determinations and redistribution.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Duty to inform beneficiaries about care costs	Cook argues Diane had a duty to inform him of care costs.	Brateng argues no such duty under the trust or statute.	No breach; no prejudice to John; no duty to inform about routine care costs.
Caregiving compensation scope	Cook seeks compensation for caregiving as part of trustee duties.	Caregiving costs are not trustee services; compensation must be reasonable per trust.	Diane entitled to reasonable caregiving compensation; may be paid as employee; reasonable trustee compensation also allowed.
Repair/remodel expenses as trust preservation	Costs for repairing/remodeling Ilwaco home should reduce Diane's share.	Repairs/remodeling were within Diane's discretion to preserve trust property.	Diane could repair/remodel; $10,000 deduction improper; costs deemed appropriate.
Value of Ilwaco property for division	Use value-current appraisal to divide; 2001 value insufficient.	2007 appraisal should govern; parties provided no authority for alternative value.	Value fixed at 2007 appraisal of $217,000 for division.
Attorney fees allocation	John entitled to fees due to supposed breach.	Fees should reflect substantial benefit to trust; breach not proven.	John’s fees vacated; Diane entitled to fees for trial and appeal; remand to set appropriate amounts.

Allard v. Pac. Nat'l Bank, 99 Wash.2d 394 (1983) (trustee must inform beneficiaries of material facts before significant transactions)
In re Estate of Ehlers, 80 Wash.App. 751 (1996) (timely accounting is not a breach if no prejudice shown; focus on timely reporting)
Tucker v. Brown, 20 Wash.2d 740 (1944) (trustee's duty to inform and act in beneficiaries' best interests)
Inland Nontestamentary Trust of Parks, 39 Wash.2d 763 (1951) (standard of care for trustee diligence and prudence)
Templeton v. Peoples Nat'l Bank, 106 Wash.2d 304 (1986) (tools for construing trust intent and duties)