[WSBAPT] Laches - Trustee

[Josh Grant]

Client (H) was PR of spouse’s will which was filed for probate in 2008, It contained a special needs trust for benefit of H with remainder to T .  Trustee (T) is a daughter of W.  
W’s undivided 1/2 of home was deeded to testamentary  trust.
Home sold in 2008 for over $200,000.  T and H signed deed.
About $100,000 of proceeds was placed in a trust checking account. 

2009 H then purchased Blackacre.  T claims funds were used from trust account for part of purchase.
Title to blackacre was vested in H’s name only.

T now claims, 7 years later,  that the Trust should be entitled to a portion of blackacre.

T never did any annual reports, accountings, never distributed any funds to the beneficiary who was H for life, and did not insist that the Trust be on the title to Blackacre, notwithstanding funds from Trust were used to purchase it.

A CPA agreement existed at W’s death.  
T says that under Norris v. Norris 95 Wn 2d 124,  1980, that H can not now claim that the CPA prevails over the Will because he accepted a benefit under the will.  

Is there a laches or a statue of limitations defense which can be used here?

The other thought is that by never giving any benefits to H, T is now hard pressed to claim that the trust was properly set up, and H really didn’t get any benefit from the trust and therefore even under Norris, the CPA should prevail.

Thoughts?

Josh



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