CourtListener 9492884•In Re: The Genaro Louis Perez Trust Dated October 19, 2025
In Re: The Genaro Louis Perez Trust Dated October 19, 2025
CourtListener 9492884Hawapp11 apr 2024
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NOT FOR PUBLICATION IN WEST'S HAWAI#I REPORTS AND PACIFIC REPORTER
Electronically Filed
Intermediate Court of Appeals
CAAP-XX-XXXXXXX
11-APR-2024
08:04 AM
Dkt. 94 SO
NO. CAAP-XX-XXXXXXX
IN THE INTERMEDIATE COURT OF APPEALS
OF THE STATE OF HAWAI#I
IN THE MATTER OF
THE GENARO LOUIS PEREZ
TRUST DATED OCTOBER 19, 2015
APPEAL FROM THE CIRCUIT COURT OF THE FIRST CIRCUIT
(TRUST NO. 17-1-0109)
SUMMARY DISPOSITION ORDER
(By: Leonard, Acting Chief Judge, Hiraoka and Nakasone, JJ.)
Petitioners-Appellants Carlos G.K. Perez and Jacob G.K.
Perez (the Perez Sons) appeal from the June 14, 2019 Judgment on
Order Granting in Part and Denying in Part Petition for (1)
Declaratory Order; (2) Removal and Substitution of Successor
Trustee; (3) Appointment of New Successor Trustee; (4) Surcharge
of Gloria M.S. Crawford (Crawford); (5) Sanctions Against
[Crawford]; (6) Accounting; and (7) Referral to the Civil Trial
Calendar as a Contested Case Pursuant to Rule 20, [Hawai#i
Probate Rules (HPR)] [the Petition] entered by the Probate Court
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of the First Circuit (Probate Court),1 in favor of Crawford and
Evangeline M. Dias (Dias) (together, the Sisters) (Judgment).
The Perez Sons also challenge the Probate Court's (1)
June 14, 2019 Order Granting in Part and Denying in Part [the
Petition] and the (2) August 6, 2019 Findings of Fact [(FOFs)],
Conclusions of Law [(COLs)], and Decision and Order Granting in
Part and Denying in Part [the Petition] (Order on Petition).
The Perez Sons raise six points of error on appeal,
contending that the Probate Court erred in: (1) failing to
include in its FOFs and/or COLs that the provisions of the
Genaro Louis Perez Trust (the Trust) were inconsistent, and that
ambiguity existed; (2) concluding in COL 7, that based upon a
reading of the whole and entire Trust, Genaro Louis Perez's
(Settlor's) intent was to name Settlor's Sisters as the Trust's
sole beneficiaries; (3) concluding in COL 8 that Article A-5.2 of
the Trust is controlling; (4) concluding in COL 9 that the sole
remaining beneficiaries of the Trust are Settlor's Sisters; (5)
failing to permit a contested hearing through referral to the
Civil Trials Calendar; and (6) failing to permit the inclusion of
extrinsic evidence.
Upon careful review of the record and the briefs
submitted by the parties, and having given due consideration to
the arguments advanced and the issues raised by the parties, we
resolve the Perez Sons' points of error as follows:
(1) The Perez Sons argue that the Probate Court erred
in failing to include a FOF/COL that the Trust was ambiguous as
1
The Honorable R. Mark Browning presided.
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to its intended beneficiaries even though the court orally ruled
that "there are ambiguities" in the Trust. Read as a whole, the
Trust is indeed ambiguous. In one provision, the Trust states:
If all of my living Children, have reached twenty-one
years of age or none of my Children is alive, then this
trust will terminate and . . . Trustee will distribute the
Trust Estate to my Descendants, Per Stirpes[.]
However, in another provision, the Trust states:
My sisters GLORIA M.S CRAWFORD and EVANGELINE M. DIAS,
will be the beneficiaries of the Family Trust.
These provisions, even when read in the context of the
entirety of the Trust, are in direct conflict. Under the former,
the Perez Sons, as the Settlor's Descendants, would appear to be
entitled to the distribution of the Trust's assets; and the
Sisters, who are plainly not the Settlor's Descendants, would not
receive any distribution. Under the latter provision, the
Sisters are named as "beneficiaries" of the Trust, apparently
entitling them to receive the Trust's assets.
In the Order on Petition, the Probate Court concluded
that the latter provision indicated the Settlor's intent,
without recognizing the ambiguities in the Trust document in
light of the conflict between the above-referenced provisions as
well as the other operative provisions in the Trust. Absent,
inter alia, findings recognizing the ambiguities in the Trust –
and either harmonizing them, allowing extrinsic evidence as to
the Settlor's intent, and/or otherwise addressing and resolving
them – or stating that no ambiguity exists, the Probate Court's
findings are not sufficient to form a basis for the Probate
Court's conclusion that the provision favoring the Sisters is
controlling. See In re Elaine Emma Short Revocable Living Tr.,
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147 Hawai#i 456, 465-66, 465 P.3d 903, 912-13 (2020); In re
Raymond K. Tanaka Tr., CAAP-XX-XXXXXXX, 2021 WL 1200698, *4 (Haw.
App. Mar. 30, 2021) (SDO); Ventura v. Grace, 3 Haw. App. 371,
375, 650 P.2d 620, 623-24 (1982). We conclude that the Probate
Court erred in failing to make sufficient findings.
(2-4) In their second, third, and fourth points of
error, the Perez Sons argue that the Probate Court erred in
concluding in COLs 7, 8, and 9 that it was Settlor's intent to
name the Sisters as sole beneficiaries of the Trust. COLs 7, 8,
and 9, state:
7 - Upon a whole reading of the Trust, the Court
concludes that the Settlor's intent was to name his two
sisters as his sole beneficiaries. In 2015, when the
Settlor created the Trust, his children were alive, and the
Settlor chose to omit them as beneficiaries and did not
reference them by name in the instrument. Conversely, the
Settlor consistently named his two sisters in the Trust as
beneficiaries.
8 - Article A-5.2 of the Trust controls, for the
benefit of Gloria M.S. Crawford and Evangeline M. Dias as
the sole beneficiaries.
9 - The Court grants declaratory relief and concludes
that the sole remainder beneficiaries of this Trust are
Gloria M.S. Crawford and Evangeline M. Dias.
"A fundamental rule when construing trusts is that the
intention of the settlor as expressed in a trust instrument shall
prevail unless inconsistent with some positive rule of law." Tr.
Created Under Will of Damon, 76 Hawai#i 120, 124, 869 P.2d 1339,
1343 (1994) (citation and brackets omitted). When construing a
document to determine the settlor's intent, the instrument must
be read as a whole, not in fragments. Id. When evaluating
whether a trust contains an ambiguity,
the test lies not necessarily in the presence of particular
ambiguous words or phrases but rather in the purport of the
document itself, whether or not particular words or phrases
in themselves be uncertain or doubtful in meaning. In other
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words, a document may still be ambiguous although it
contains no words or phrases ambiguous in themselves. The
ambiguity in the document may arise solely from the unusual
use therein of otherwise unambiguous words or phrases. An
ambiguity may arise from words plain in themselves but
uncertain when applied to the subject matter of the
instrument. In short, such an ambiguity arises from the use
of words of doubtful or uncertain meaning or application .
In re Lock Revocable Living Tr., 109 Hawai#i 146, 152, 123 P.3d
1241, 1247 (2005) (citation omitted).
Here, Article D-1 of the Trust states that "'Child' and
'Children' means a person's first generation Descendant(s)."
Article D-3 states that "'Descendant' means any person descended
from the ancestor referred to, either by blood relationship to
the ancestor or by legal adoption by either the ancestor or by
any person descended from the ancestor by blood relationship or
by legal adoption." Article D-6 states that "[t]he 'Family
Trust' means the trust for my Descendants as established in Part
A." (Emphasis added). Article D-12 of the Trust defines the
Trust Estate to include all property held under the Trust, all
property payable to or accruing to the Trustee as a result of the
Settlor's death, and the income from and the proceeds,
investments and reinvestments of that property.
Article A-5.1 clearly provides for the distribution of
the Settlor's tangible personal property to the Sisters. The
provisions that follow, although not necessarily ambiguous in
singular isolation, create ambiguity in the Trust document as a
whole:
A-5.2 REMAINDER - IF DESCENDANTS ARE ALIVE
If at my death, my descendants, are alive, then after
payment of amount under Article C-1.3 [which addresses
taxes, expenses, and legacies upon Settlor's death], Trustee
will hold and administer the Trust Estate, which will then
be called the Family Trust Estate, as the Family Trust.
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A-5.3 REMAINDER - IF NO DESCENDANTS ARE ALIVE
If at my death, any of my Descendants is alive:
A-5.3(A) CHILDREN ALL TWENTY-ONE YEARS OF AGE
If all of my living Children, have reached
twenty-one years of age or none of my Children is
alive, then this trust will terminate and, after
payment of amounts under Article C-1.3, Trustee will
distribute the Trust Estate to my Descendants, Per
Stirpes[.]
A-5.3(B) ANY CHILD UNDER TWENTY-ONE YEARS OF AGE
If any of my living Children, has not reached
twenty-one years of age, then after payment of amounts
under Article C-1.3, Trustee will hold and administer
the Trust Estate, which will then be called the Family
Trust Estate, as the Family Trust.
A-5.4 IF ANY DESCENDANTS IS NOT ALIVE
If at my death, none of my Descendants is alive, then
this trust will terminate, and after payment of amounts
under Article C-1.3, Trustee will distribute the Trust
Estate to GLORIA M.S. CRAWFORD and EVANGELINE M. DIAS.
ARTICLE A-6 DISTRIBUTION OF FAMILY TRUST ESTATE AFTER MY DEATH
A-6.1 BENEFICIARIES
My sisters GLORIA M.S. CRAWFORD and EVANGELINE M.
DIAS, will be the beneficiaries of the Family Trust.
A-6.2 INCOME AND PRINCIPAL DISTRIBUTIONS
Trustee may distribute to or for the benefit of my
Descendants as much of the net income and principal of the
Family Trust as Trustee deems advisable in accordance with
their needs for their health, education, maintenance and
support, as determined by Trustee.
A-6.3 TERMINATION
The Family Trust will terminate when my youngest
living Child has reached twenty-one years of age or none of
my Children is alive. On termination, Trustee will
distribute the Family Trust Estate, free of any trust, to
GLORIA M.S. CRAWFORD and EVANGELINE M. DIAS.
If one read no further than A-5.4, particularly in
light of the definitions set forth above, arguably, the Trust
unambiguously provides that except for tangible personal
property, the Trust Estate would be distributed to and held for
the benefit of the Settlor's living Descendants, per stirpes, and
to the Sisters if there are no living Descendants. It appears to
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be uncontested that in this scenario, the Trust Estate would be
distributed to the Perez Sons. However, reading on to Article A-
6 creates ambiguity in the document. A-6.1 uses the term
"beneficiaries," which is undefined in the Trust. Beneficiaries
can be income, remainder and/or contingent beneficiaries,
depending on the intent of a settlor. A-6.2 provides the Trustee
great latitude to use income or principal for the needs of the
Settlor's Descendants, presumably Descendants under the age of 21
(although we make no findings as to that). A-6.3 can be read a
number of different ways, but in all cases must be understood in
conjunction with the Trust's other provisions. We conclude that
the Trust is ambiguous, and the Probate Court failed to issue
sufficient requisite finding of fact supporting its conclusions
in COLs 7, 8, and 9, as to the Settlor's intent; and therefore,
we necessarily remand the case to the Probate Court for the
identification and findings of facts in support of a conclusion
as to the Settlor's intent. See In re Elaine Emma Short
Revocable Living Tr., 147 Hawai#i at 465-66, 465 P.3d at 912-13.
(5) The Perez Sons argue that the Probate Court erred
in denying their request to refer the case to the civil trials
calendar for a contested hearing pursuant to the Hawai#i Probate
Rules (HPR) Rule 20.
HPR Rule 20 states, in pertinent part:
Rule 20. DISPOSITION OF CONTESTED MATTERS.
(a) Assignment. The court by written order may
retain a contested matter on the regular probate calendar or
may assign the contested matter to the civil trials calendar
of the circuit court.
(b) Guideline for Assignment. The court may use as a
guideline on whether to assign a contested matter to the
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civil trials calendar the expected length of the hearing and
whether it will take more than one-half day. The court may
also assign other matters to the civil trials calendar, with
or without the stipulation of the parties, and the court, at
the request of all parties, may retain on the probate
calendar a contested matter that would otherwise be assigned
to the civil trials calendar, if the court determines the
matter can be handled more efficiently and effectively.
When the court assigns a contested matter to either
calendar, the court may set a status conference date, which
the court clerk will note in the order assigning the
contested matter, or in a separate status conference order.
. . . .
(d) Procedures in Retained Contested Matters .
Whenever the court retains jurisdiction of a contested
matter as a probate proceeding, the court in the order of
assignment may, at the request of the parties, designate and
order that any one or more of the Hawai#i Rules of Civil
Procedure and/or the Rules of the Circuit Courts shall be
applicable in such matter.
The commentary to HPR Rule 20(a) states that "[i]t is
anticipated that the court will assign to civil trials the more
complex and time consuming cases[.]" HPR Rule 20(a) cmt. The
commentary further states that a written order of assignment is
required to create a clear record and to give the court an
opportunity to decide what procedures will be used, pursuant to
HPR Rule 20(d). Id.
Here, the parties and the Probate Court agreed that
this case "come[s] down to the interpretation of the Trust." The
plain language of HPR Rule 20(a) provides the Probate Court the
discretion to retain a case or refer it to the civil trials
calendar, and we cannot conclude that the Probate Court's
decision to retain this matter "clearly exceeded the bounds of
reason or has disregarded rules or principles of law or practice
to the substantial detriment of a party litigant." In re Tr.
Agreement Dated June 6, 1974, 145 Hawai#i 300, 309, 452 P.3d 297,
306 (2019) (citation omitted). However, the Probate Court erred
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by failing to issue a written order retaining the case, in
violation of HPR Rule 20(a). Such an omission in a contested
matter deprives parties of the opportunity to request that the
probate court adopt any HRCP and/or Rules of the Circuit Court
under HPR Rule 20(d). See In re Elaine Emma Short Revocable
Living Tr., 147 Hawai#i at 469 n.26, 465 P.3d at 916 n.26.
Accordingly, on remand, the Perez Sons may renew their request,
and the Probate Court may retain or assign the case in accordance
with HPR Rule 20.
(6) The Perez Sons argue that the Probate Court erred
in failing to consider extrinsic evidence and that this failure
was prejudicial. This argument has merit. Although a settlor's
intent must be gathered if possible from the trust document
itself, where there is controversy or doubt as to the meaning of
the trust document, extrinsic evidence may be considered to
determine the true intent of the settlor. See In re Lock
Revocable Living Tr. 109 Hawai#i at 153-54, 123 P.3d at 1248-49;
Graham v. Washington Univ., 58 Haw. 370, 375, 569 P.2d 896, 900
(1977) (citing Hokama v. Relinc Corp., 57 Haw. 470, 476, 559 P.2d
279, 283 (1977); In re Trust Estate of Samuel H. Dowsett, 38 Haw.
407, 409-410 (1949)). In light of the ambiguity in the Trust
document in this case, we conclude that the Probate Court abused
its discretion in declining to consider extrinsic evidence to
determine the Settlor's intent.
For these reasons, the Probate Court's June 14, 2019
Judgment and Order on Petition are vacated, and this case is
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remanded to the Probate Court for further proceedings consistent
with this Summary Disposition Order.
DATED: Honolulu, Hawai#i, April 11, 2024.
On the briefs: /s/ Katherine G. Leonard
Acting Chief Judge
Mark S. Kawata,
for Petitioners-Appellants. /s/ Keith K. Hiraoka
Associate Judge
Pablo P. Quiban,
for Respondents-Appellees. /s/ Karen T. Nakasone
Associate Judge
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