435 F. App'x 4
D.C. Cir.2011Background
- On February 6, 2004, Richard Ray Solem created a Living Trust for his assets during life and after death.
- Solem named his daughters Karen Derringer and Sanna Solem as beneficiaries; the trust provided for a Ray Solem Charitable Foundation.
- The trust required that any assets remaining after distribution to the daughters be distributed to the Foundation.
- Solem named himself as trustee and his daughters as successor trustees; for the Foundation, the trustees were the daughters and Marianne Emerson.
- The trust contained a broad no-contest forfeiture clause prohibiting challenges to validity or amendments.
- Solem drafted a Modification Memorandum and a Summary purporting to remove the daughters as trustees and beneficiaries; Emerson distributed assets per the Summary.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the declaratory action is a trust contest | Derringer contends action is not a trust contest. | Emerson contends declaratory relief seeks amendments to the trust. | Yes; the action is a trust contest. |
Key Cases Cited
- Keener v. Keener, 278 Va. 435, 682 S.E.2d 545 (2009) (forfeiture and contest principles govern trust amendments)
- Womble v. Gunter, 198 Va. 522, 95 S.E.2d 213 (1956) (no-contest provisions and trusts generally considered contests)
- Virginia Foundation of Indep. Colls. v. Goodrich, 246 Va. 435, 436 S.E.2d 418 (1993) (declaratory actions interpreting trust terms can be contests)