In th e S u p re m e Co u rt o f Ge o rg ia

De c id e d: F e b ru a ry 1 , 2 0 1 6

S 1 5 A1 51 5. S MITH v . AS HF O RD e t a l.

THOMP S O N, Ch ie f Ju stic e

.

Ja y Ric h a rd Sm ith (S m ith ) d ie d te sta te on Oc to b e r 2 9

, 20 1 3

, su rv iv e d b y

h is wife

, Ka th y Kristin a S m ith

, a p p e lla n t in th is c a se

, a n d th e c o u p le ’s two

m in o r d a u g h te rs. At th e tim e o f h is d e a th

, S m ith wa s th e b e ne fic ia ry o f th e Ja y

Ric h a rd S m ith Irre vo c a

b le Tru st (th e “ Tru st” ) e sta b lish e d by h is pa re n ts, th e

p ro v isio ns o f w h ic h g ra n te d S m ith a n u n re stric te d te sta m e n ta ry p o we r o f

a p p o in tm e n t o f th e Tru st a sse ts re m a in in g a fte r h is d e a th

. F ollo win g S m ith ’s

d e a th

, a p p e lla n t file d a pe titio n to p ro b a te S m ith ’s will d a te d Se p te m b e r 5

, 2 0 1 3

(th e “ Will” ) in G win n e tt Co un ty P ro ba te Co u rt. Th e re a fte r

, t h e p ro b a te c o urt

a p p o in te d a

p pe lla n t to se rv e a s p e rso n a l re p r e se nta tiv e o f S m ith ’s e sta te a n d

a p p e lle e

, D a n a C. Ash fo rd

, to se rv e a s Gu a rd ia n Ad Lite m re p re se n tin g th e

in te re sts o f th e m in o r c h ild re n

.

Ap p e lla n t file d a P e titio n fo r De c la ra to ry Ju d g m e nt a n d Co n stru c tio n o fa

Will, se e k in g c on stru c tio n o f th e Will b y th e p ro ba te c o u rt a n d a d e c la ra tio n

a s to wh e th e r S mi t h

, u n d e r th e te rm s o f th e Will, e x e rc ise d th e te sta m e n ta ry

p o we r of a

p p o in tm e n t g ra n te d h im

b y th e Tru st. Ap p e lle e file d a re sp o n se o n

b e h a lf o f th e c h ild re n

, a sse rtin g th a t th e l an g u a g e o f th e Will wa s c le a r a n d

u n a m b ig u o u s, th a t n o c on stru c tio n of th e Will wa s n e c e ssa ry o r a p p ro p ria te

, a n d

th a t n o ju stic ia

b le c o n tro ve rsy e x iste d to su pp ort th e d e c la ra to ry re lie f so u g h t.

Afte r re v ie win g th e p le a d in g s, m o tio n s, b r i e f s an d a rg u m e n ts o f c o un se l, th e

p ro b a te c o u rt e n te re d a n ord e r o n F e b ru a ry 2

, 2 0 1 5

, fin din g th a t t h e W i l l wa s

n o t a m b ig u o u s a n d th a t th e c o u rt th u s c ou ld n ot lo o k b e y o n d th e fo u r c o rn e rs o f

th e d o c u m e n t to a sc e rta in S m ith ’s in te nt. Go in g fu rth e r, th e c o u rt d e c id e d th a t

th e p la in la n g u a g e o f th e re le v a n t pro v isio ns o f t h e W i l l c le a rly a n d

u n a m b ig u o u s ly sh o we d S m ith fa ile d to e x e rc ise th e te sta m e n ta ry p o we r o f

a p p o in tm e n t g ra nte d him b y th e Tru st. Ac c o rd in gly

, th e pro b a te c o u rt o rd e re d

th e Tru st a sse ts to b e d istrib ute d p u rsu an t to th e te rm s o f th e Tru st w h e re n o

p o we r o f a

p p o in tm e n t h a d b e e n e x e r c ise d

. Ap p e lla n t a p p e a ls th is o rd e r, a n d

b e c a u se we a g re e th e la ng ua g e o f th e Will is u n a m b ig u o u s, b u t disa g re e with th e

p ro b a te c o u rt’s d e t e rm in a tio n th a t S m ith fa ile d to e x e rc ise h is te sta m e n ta ry

p o we r o f a

p p o in tm e n t th e re in

, we a ffirm in p a rt a n d re v e rse in p a rt th e p ro b a te

2c o u rt’s o rd e r in th is c a se

.

1

. A re v ie w o f th e e v id e n c e sh o ws th a t th e p o we r o f a pp o in tm e n t g ra n te d

S m ith is c le a rly se t fo rth in th e T ru st do c u m e n ts. Artic le S ix , S e c tio n 6 .0 1 (c )

o f th e Tru st p ro v id e s in p e rtin e n t p a rt:

[S m ith ] sh a ll h a v e th e u n lim ite d a n d u n re stric te d te sta m e nta ry

g e n e ra l p o we r to a

p p o in t a ll o r a n y p o rtio n o f th e p rin c ip a l a n d

u n d istrib u te d in c o m e re m a in in g in h is tru st a t his d e a th u po n on e o r

m o re p e rso n s o r e n titi e s an d th e c re d ito rs o f [S m ith ’s] e sta te

. [S m ith ] sh a ll h a v e th e so le a n d e x c lu siv e rig ht to e xe r c i s e t h is

g e n e ra l p o we r o f a

p p o in tm e n t. . .

In so fa r a s a

n y p a rt o f [S m ith ’s] tru st sh a ll n o t b e e ffe c t i v e ly

a p p o i n te d

, th e Tru ste e sh a ll d istrib u te th e re m a in in g u n a p p o in te d

b a la n c e p e r stirp e s in tru sts to th e d e sc e n d a nts o f [S m ith ]

.

Co rre sp o n d in g ly , Artic le Nin e , S e c tio n 9 .1 1 o f th e Tru st a llo ws

[a ] te sta m e n ta ry p o we r o f a p p o in tm e nt g ra n te d u n d e r th is Tru st [to ]

b e e x e r cise d by a W ill, Liv in g Tru st o r o th e r writte n in stru m e n t

sp e c ific a lly re fe rrin g to th e p o w e r o f a p p o in tm e n t.

Ap p e lla n t c o n te nd s th a t S m ith so u g h t to e x e rc ise th e te sta m e n ta ry p o we r o f

a p p o in tm e n t g ra n te d h im

u n d e r th e Tru st b y in c lu d in g th e fo llo w in g la n g u a g e

in Artic le IV, S e c tio n 4 .3 o f th e Will:

3Tru st In te re st fro m F a m ily Lim ite d Lia b ility Co rp o ra tio n

. 1 Up o n

my d e a th I giv e a p o w e r o f a p p oin tm e n t to my sp o u se re la te d to a n y

re a l a nd p e rso n a l pro p e rty a n d o th e r t a n g i b l e a sse ts th a t I b e n e fit

fro m u n d e r th e Lim ite d Lia b il i t y C o rp o ra tio n c re a te d b y m y

d e c e a se d p a re n ts wh ic h is fo rm a lly k n o wn a s ALP ERT CAP ITAL

INVES TMENTS L LC, C/O DORIS ALP ERT MANAGING, 3 1 1 5

S

. O c e a n Blv d

., # 9 0 4

, Hig hla n d Be a c h

, F lo rid a 3 3 4 8 7 -2 57 5 an d

w h i c h i s c u rre ntly sh a re d b y m e with my sib lin g s. If my sp o u se

sh a ll pre d e c e a se m e o r fa ils to e xe rc ise th is p o we r o f a p p o in tm e n t,

th is g ift sh a ll b e n e f

i t m y c h ild re n e ith e r b y d ire c t e x e rc ise o f th e

p o we r so lo n g a s th e y h a v e a c h ie v e d th e a g e of 3 0 y e a rs o r to th e

tru ste e u n d e r Artic le V o f th is Will if th e y a re u n d e r a g e 3 0

. 2

We a g re e w ith th e pro b a te c o u rt th a t th e la n g u a g e o f S e c tio n 4 .3 o f th e Will is

p la in

, u n a m

b ig u o u s a n d c a

p a b le o f o n ly o n e i n t er p r e t a tio n

. By its p la in

la n g ua g e

, th e first se nte n c e o f th is se c tio n p ro v id e s th a t, u p on h is d e a th

, S m ith

g iv e s a p p e lla n t a p o w e r o f a

p p o in tm e n t o ve r p ro p e rty c o n ta in e d in th e tru st.

“ Un d e r Ge o rg ia la w, a p o we r o f a p p o in tm e n t c a n b e e x e rc ise d o n ly in th e

m a n n e r sp e c ifie d b y th e d o n o r.” Ha rg ro v e v

. Ric h

, 2 7 8 Ga

. 5 6 1

, 5 62 (6 04 S E2 d

4 7 5 ) (2 0 0 4 ). H e re

, th e p ro v isio n s o f th e T ru st g ra n te d S m ith a n “ u n lim ite d a n d

1 Provisions reg a

rding proper construction of the document are set forth in Article VI I I of

the W ill, Section 8.4 of which ex pressly pr o v i d e s t h a t “heading s, titles and subtitles herein are

inserted for convenience of reference only and are to be ig nored in any construction of the provisions

hereof.”

2 Article V of the W ill, entitled J -K Smith F amily T rust, creates a trust, the s t ated primary

purpose of which is “to provide for the health, support, maintenance, a nd education of my children.”

4u n re stric te d g e n e ra l p o we r to a p p o in t a ll o r an y p o rtio n o f th e p rin c ip a l a n d

u n d istrib u te d in c o m e re m a in in g in h is t r u st a t h is de a th ” a n d th e “ so le a n d

e x c lu siv e rig h t to e x e rc ise th is g e n e r a l p o we r o f a p p o in tm e n t” b y a will

“ sp e c ific a lly re fe rrin g to th e po we r o f a p p o in tm e n t.” Th u s, wh ile S m ith h a d th e

p o we r to a

p p o in t th e p ro p e rty re m a in in g in th e Tru st a t th e tim e o f h is de a th

, h e

d id n o t h a v e th e a

u th o rity to g iv e th is p o w e r o f a p po in tm e n t to a n o th e r. In ste a d

,

th e tru st d o n o rs sp e c ific a lly p ro v id e d th a t in th e e v e n t Sm ith fa ile d to e ffe c tiv e ly

a p p o in t th e tru st p ro p e rty h im se l f

, u p o n h is d e a th th e re m a in in g u n a p p o in te d

b a la n c e wo uld b e d istrib u te d p e r stirp e s in tru sts to h is d e sc e n d a n ts.

Citin g O CGA § 5 3 -4 -5 5

, 3 a p p e lla n t a sse rts th a t e v e n th o u g h p a ro l

e v id e n c e is in a dm issib le to v a ry th e un a m big u ou s t e r m s o f a will, th e

c irc u m sta n c e s su rro u n din g a t e s t a to r a t th e tim e o f e xe c utio n o f a will sh o u ld

a lwa y s b e c o n sid e re d b y th e c o u r t i n in te rp re tin g th e m e an in g o f a will’s

3 This statute specifically

provides:

I n the construction of all w ills, the court shall seek d ilig ently for the intention of the

testator and shall g ive effect to such intention as far as it may b e c onsistent w ith the

rules of law. Provided the proof of intention is clear and convincing

, the c ourt may

transpose sentences or clauses, chang e conjunctions, and supply or delete words in

cases in which a sentence or clause as it stands is unintellig ible or inoperative in

contex t.

OCGA § 53-4-55.

5p ro v isio ns a n d th a t, in th is c a se

, p a ro l e vid e n c e wo u ld e sta b lish S m ith ’s in te n t

to g iv e he r th e tru st a sse ts v ia th e will. Th is a rg u m e n t, h owe v e r, m isc o n stru e s

th e sta tu te wh ic h o n ly a p p lie s a fte r a d e te rm in a tio n h a s b e e n m a de th a t a n

a m b ig u ity e x ists re q u irin g th e will’s c o n stru c tio n

. S e e B a n n e r v

. Va n d e fo rd

,

2 9 3 Ga

. 6 5 4

, 6 5 5 (1 ) (7 4 8 SE2 d 9 2 7 ) (2 0 1 3 ) (“ Co urts a re with ou t a u th o rity to

re write b y c o n s t r u c tio n a n u n a m b ig u o u s will.” ) (q u o tin g Hu n g e rfo rd v

. Tru st

Co . o f Ga ., 1 9 0 Ga . 3 8 7 , 3 8 9 (9 S E2 d 3 6 0 ) (1 9 4 0 )).

Th e c a rd in a l ru le in c o n stru in g th e p ro v isio n s o f a will is to d e te rm in e th e

in te nt o f th e te sta to r. Se e OCGA § 5 3-4 -5 5 ; Ba n n e r, su p ra

. It is w e l l se ttle d

,

h o we v e r, th a t “ th e re is n o ro o m fo r c o n stru c tio n wh e n th e m e an in g o f th e wo rd s

u se d in th e will is so p la in a n d o bv io u s th a t it c a n n o t b e m isu n d e rsto o d .” Erwin

v

. Sm ith

, 9 5 Ga

. 6 9 9 (2 2 S E 7 1 2 ) (1 8 9 5 ). Th is is tru e e v e n if th e w o rd s u se d in

th e will e x p r e s s a m e a n in g e n tire ly a t v a ria n c e with th e re a l in te n tio n o f th e

te sta to r. Id

. S e e Ba n ne r, su p ra a t 6 55

. Th e p la in a n d u n a m b ig u o u s te rm s o f a

will m u st c o n tro l a n d “ [p ] a ro l e v id e n c e c a n n o t b e u se d to c o n tra d ic t o r giv e n e w

m e a n in g to th a t wh ic h is e x p re sse d c le a rly in th e will.” Re y n o ld s v. Ha rriso n

,

2 7 8 Ga

. 4 9 5

, 4 9 8 (6 0 4 S E2 d 1 8 4 ) (2 00 4), c itin g Ha ll v

. Be e c h e r, 2 2 5 Ga

. 3 5 4

,

3 5 7 (1 6 8 S E2 d 5 8 1 ) (1 96 9 ). Th u s, o n ly wh e re a will is a m b ig uo u s c a n th e c o urt

6a

p p ly th e ru le s o f c on stru c t i o n a n d c o n sid e r p a ro l e v id e n c e o f c irc um sta n c e s

su rro u n d in g th e te sta to r a t th e tim e o f e x e c u tio n of th e will in o rd e r to a sc e rta in

th e te sta to r’s in te n t. S e e OCGA § 5 3 -4 -5 6 (“ In c o nstru in g a will, th e c o u rt m a y

h e a r p a ro l e v id e n c e o f th e c irc u m sta nc e s su rro u n d in g th e te sta to r a t th e tim e o f

e x e c u tio n to e x pla in a ll a m b ig u itie s, wh e th e r la te nt o r p a te n t.” ).

2

. Ap p e lla nt a d d itio n a lly arg u e s th a t th e p ro p e rty de sc rib e d in S e c tio n

4 .3 of th e Will d o e s n o t e x ist b e c a u se S m ith pe rso n a lly o wn e d no in te re st in th e

re fe re nc e d LLC. Ap p e lla n t c o n te n d s th is a lle g e d disc re p a nc y c re a t e s a l a te n t

a m b ig u ity in S e c tio n 4 .3 o f th e Will wh ic h re q u ire s a p plic a tio n o f th e ru le s o f

c o n stru c tio n b y t h e p ro b a te c o u rt. S e e OCGA § 5 3 -4 -5 6

. P oin tin g to c a se s in

wh ic h th is Co u rt ha s c o n sid e re d p a ro l e v id e n c e to c o rre c t m isn a m e d o r

m isid e n tifie d p ro p e rty a n d /o r b e n e fic ia rie s in a will, se e

, e .g

., Dy e ss v

. B re wto n

,

2 8 4 G a

. 5 8 3, 58 5 ( 6 6 9 S E2 d 1 4 5 ) (2 00 8) (will da te d in Ma y in c o rre c tly

re fe re nc e d a s “ Ma rc h will” ); Le g a r e v

. L e g a re

, 2 6 8 Ga

. 4 7 4

, 47 5 (4 9 0 S E2 d

3 6 9 ) (1 99 7 ) (will c o m

b in e d th e n a m e s o f two re la tiv e s d e sp ite in d ic a tin g o n ly

o n e b e n e fic ia ry ), a

pp e lla n t a sse rts th a t th e p ro b a te c o u rt’s fa ilu re to fin d a la te n t

a m b ig u ity with re sp e c t to th e p ro p e rty re fe rre d to in th is se c tio n o f th e Will a n d

its re fu sa l to c o n sid e r p a ro l e vid e n c e c o n stitu te d re v e rsib le e rro r. We disa g re e

.

7In S e c tio n 4 .3 o f th e Will, S m ith d e sc rib e s th e p ro p e rty o v e r w h ic h h e

se e k s to g iv e a

p p e lla nt a p o we r o f a

p p o in tm e n t a s “ a n y re a l a n d p e rso n a l

p ro p e rty a n d o th e r ta n g ib le a sse ts th a t I b e ne fit fro m u n d e r th e L im ite d Lia b ility

Co rp ora tio n c re a te d b y my d e c e a se d pa re n ts

. . . wh ic h is c u rre n tly sh a re d b y m e

with my sib lin g s.” As it is u n d isp u te d th a t S m ith b e n e fitte d f r o m th e LLC’s

a sse ts th ro u g h th e te rm s o f th e Tru st, we fin d n o a m b ig u ity in th is d e sc rip tio n

.

Mo re o v e r, a

p p e lla nt h a s fa ile d to d e m o nstra te h o w a ny a m big u ity c re a te d b y a

m is-c h a ra c te riz a tio n of th e p ro p e rty in th e Will wo u ld c re a te a n a m b ig u ity with

re sp e c t to th e issu e o f wh e th e r S m ith

, b y p u rp o rtin g to g iv e a p p e lla nt th e p o we r

o f a p p o in tm e n t o v e r th e tru st a sse ts, pro p e rly e x e rc ise d his te sta m e nta ry p o we r

o f a pp o in tm e n t o v e r th o se a sse ts. Re g a rd le ss o f h ow th e p ro p e rty is d e sc rib e d

in th e Will, th e la n g ua g e o f th e Will m a k e s c le a r th a t Sm ith wa s n o t g iv in g th e

p ro p e rty to a

p p e lla n t, b ut ra th e r, wa s g iv in g h e r a p owe r o f a p po in tm e n t o v e r th e

p ro p e rty

. S e e Oliv e r v

. He n d e r s o n

, 1 21 Ga

. 8 3 6

, 8 39 (4 9 S E 7 4 3 ) (1 9 0 5 )

(“ P a ro l e v id e n c e is n o t a dm issib le to s h o w th a t th e te sta to r m e a n t o n e th in g

wh e n h e sa id a no th e r.” ).

3

. Ou r c o n sid e ra tio n o f wh e th e r S m ith v a lid ly e x e rc ise d h is te sta m e n ta ry

p o we r of a

p p o in tm e n t in th e Will d o e s n o t e nd he re b e c a u se

, h a vin g fo u n d th a t

8S m ith la c k e d th e a u th ority to g iv e a

p p e lla n t t h e p o we r to a

p p o in t th e Tru st

p ro p e rty in h is ste a d, we m u st a lso c o n sid e r th e e ff

e ct o f S mi th ’s a lte rn a tiv e

in stru c tio n s re g a rd in g th e p o we r of a p p o in tm e n t a s se t f

o r t h i n th e se c o n d

se n te nc e o f S e c tio n 4 .3 . Th is se n te n c e sta te s:

If m y sp o u se sh a ll p re d e c e a se m e o r fa ils to e x e rc ise th is p o we r o f

a p p o in tm e nt, th i s g i ft sh a ll b e n e fit my c hild re n e ith e r by d ire c t

e x e rc ise o f th e p owe r so lo n g a s t h e y h a v e a c h ie v e d th e a g e o f 3 0

y e a rs o r to th e tru ste e u n d e r Artic le V o f th is Will if th e y a re u nd e r

a g e 3 0

. 4

By th is la n g u a g e

, S m ith c re a te d a c o n tin g e n t re m a in d e r d e visin g to h is c h ild re n

a c o n tin ge n t fu tu re e sta te in th e Tru st p ro p e rty wh ic h wo u ld ve st, if a t a ll, u p o n

a p p e lla n t’s f

a i l u r e t o su rv iv e S m ith o r h e r fa ilu re to e x e rc ise th e p o we r o f

a p p o in tm e n t S m ith so u g h t to g iv e he r ov e r th e Tru st p ro p e rty

. S e e OCGA § 4 4

-

6 -6 0 (a ) (“ An e sta te in re m a in d e r is o n e lim ite d to b e e n jo y e d a fte r a n o t h e r

e sta te i s te rm in a te d o r a t a tim e sp e c ifie d in th e fu tu re .” ). S e e a lso P a d g e tt v

.

Ha tto n , 2 0 0 Ga . 2 0 9

, 2 1 0 (1 ) (3 6 S E2 d 6 6 4 ) (1 9 4 6 ) (“ A c o n tin g e n t re m a in d e r

is o n e lim ite d to a n u nc e rta in p e rso n

, o r u p o n a n e v e n t wh ic h m a y o r m a y n o t

4 W e note that this lang u ag e in Section 4.3 of the W ill was not addressed by the parties in

their briefs below o r at the hearing before the p robate court on appellant’s petition for declaratory

judg ment.

9h a

p p e n .” ). 5 Be c a

u se S m ith la c k e d th e a

u th o rity to c o n fe r o n a

p p e lla n t h is p o we r

to a p p oin t th e Tru st pro p e rty

, se e Div

. 1

, su p ra

, th u s re n de rin g th e first p ro v isio n

o f S e c tio n 4

. 3 of th e Will in va lid

, th e re m a in in g c o n tin g e n t p ro v isio n b e c a m e

o p e ra tiv e

. 6

As sta te d

, S m ith ’s de v ise to h is c h ild re n is c o n t i n g e nt up on a pp e lla n t’s

fa ilu re to su rv iv e S m ith o r h e r fa ilu re to e x e rc is e t h e p u r p orte d p o we r o f

a p p o in tm e n t. Th e first c o n tin g e nc y h a s n o t b e e n m e t b e c a u se S m ith

p re d e c e a se d a

p p e lla n t. Th e c o n tin g e n c y o f a p pe lla n t’s fa ilu re to e x e rc ise th e

p o we r o f a

p p o in tm e n t h a s b e e n sa tisfie d

, ho we v er

, b e c a u se a p p e lla n t h a s n o

a u th ority to e x e rc ise th e p o we r o f a p p o in tm e n t Sm ith in e ffe c tiv e l y b esto we d

u p o n h e r. Th us, th e c o n tin g e n c y o f fa ilu re to e x e rc ise fo u n d in th e re m a in d e r

5 U n der Georg ia law, it does not matter that the power of appointment Smith sough t t o

convey to appellant was not itself an estate in the Trust property

, but merely the absolute authority

to dispose of the estate prior to it vesting in Smith’s children pursuant to the conting ent remainder

provision o f Smith’s will. See B ienvenu v. F irst Nat. B a nk of A tlanta, 193 G a. 1 01, 107 (17 SE2d

257) (1941) (“W h ere remainders are subject to be d ivested, in whole or in part, by a d isposition of

the whole or some part of the property

, this contin g ency does n ot d eprive the remainder o f its

character.”). See also O CGA § 44-6-42 ( “ S i n c e n o particular e state is necessary to sustain a

remainder, the defeat of the particular estate for any cause does not destroy the remainder.”).

6 Article I X, Section 9.2 of the W ill entitled “Saving Clause” provides:

I f a n y court of c o mpetent jurisdiction invalidates a ny portion of this W ill o r

otherwise finds any provision unenforceable, such f inding shall not be construed as

invalidating the entirety of this W ill and all remaining provision shall r emain in leg al

force and effect.

10c la u se is m e t by virtu e o f th is le g a l im p o ssib ility

. S e e g e n e ra lly OCGA § 4 4 -6

-

4 2 ; Gre sh a m v

. Ga n n o n

, 2 4 3 Ga

. 2 6 9 (2 5 3 SE2 d 7 4 8 ) (1 9 7 9 ) (fo llo win g fa ilu re

o f c h a rita b le d e v ise

, d isp o sitio n o f e sta te wa s c o n tro lle d b y re v e rsio n ary c la use

in will).

Ne x t, we fin d th a t S m ith e ffe c tiv e ly e x e rc ise d th e te sta m e n ta ry p o we r o f

a p p o in tm e n t g r a n t e d h i m b y th e Tru st to d e v ise pro p e rty in th e T ru st to h is

c h i ld re n

. Th a t is be c a u se th e la n gu a g e o f th is se c tio n c le a rly a n d

u n a m b ig u o u sly pro v id e s th a t if a p p e lla n t f

a i ls to e x e rc ise th e p o we r o f

a p p o in tm e n t S m ith so u g h t to g iv e h e r, th e n b y “ d ire c t e x e rc ise o f th e p o we r [o f

a p p o in tm e n t] ” Sm ith ’s c h ild re n sh a ll b e ne fit fro m “ th is gift,” i.e

., th e p ro p e rty

a n d a sse ts S m ith b e n e fitte d fro m u n d e r th e LLC, wh ic h we re he ld in th e Tru st.

By d ire c tly e xe rc isin g h is so le a n d e x c lu siv e rig h t to a p p o in t th e Tru st’s a sse ts

u p o n h is d e a th wh ile re fe rrin g to th e p o we r o f a p p o in tm e n t, S m ith e x e rc ise d h is

p o we r o f a

pp o in tm e nt in th e ma n n e r sp e c ifie d by th e Tru st’s d o n o rs. S e e

Ha rg ro v e , su p ra a t 5 6 2

.

Ba se d on th e se f

i n d in g s, we re v e rse th a t p a rt o f th e p ro b a te c o u rt’s

d e c isio n fin din g Sm ith fa ile d to e x e rc ise th e te sta m e n ta ry p owe r o f a pp oin tm e n t

g ra n te d h im b y t h e Tru st a n d re q u irin g th a t th e Tru st a sse ts b e d istrib u te d

11p u rs u a n t to th e te rm s o f th e Tru st w h e re n o po w e r o f a p p o in tm e nt h a d b e e n

e x e rc ise d

. In ste a d

, p u rsu a n t to th e p ro visio n s o f th e Will, an y re a l a n d p e rso n a l

p ro p e rty a n d o th e r ta n g ib le a ss e t s t h a t S m ith b e n e fitte d fro m u n d e r th e LLC

wh ic h are h e ld in th e Tru st m u st b e d istrib ute d to th e tru ste e o f t h e J

- K S m ith

F a m ily Tru st, id e n tifie d in Ar t i c l e V o f th e Will, fo r th e b e n e fit o f S m ith ’s

c h ild re n

. Ac c o rd in g ly

, we re m a n d th is c a se to th e p ro b a te c o u rt fo r th e issu a n c e

o f a n o rd e r in c on fo rm ity with th is d e c isio n

.

Ju d g m e n t a ffirm e d in p a rt a n d re v e rse d in p a rt. All th e Ju stic e s c o n c u r.

12