Henry

I. INTRODUCTION

This appeal involves the interpretation of a trust instrument. The subject trust (the

Wise Trust) was created by Charles L. Wise (Charles) and Carolyn L. Wise (Carolyn).

Charles’s separate property, a residence we will refer to as Pick Place, was included in

the Wise Trust, as well as certain separate property of Carolyn and the couple’s

community property. Plaintiffs and appellants Kathy M. Henry and Charlynn N. Wise

are Charles’s children from a prior marriage and residual beneficiaries under the Wise

Trust.

According to the Wise Trust, upon the death of Charles or Carolyn, the “remaining

Trust Estate” is to be divided and placed into two new subtrusts: “Trust A” and “Trust

B.” After Charles’s death in 2001, Carolyn, as trustee of the Wise Trust, transferred title

to Pick Place into Trust B, where it could be used as security for a loan under certain

circumstances. The trustees of Trust B then encumbered Pick Place with a reverse

mortgage and used the loan proceeds for Carolyn’s health, support, and maintenance.

The reverse mortgage was eventually acquired by respondent Bank of America (BofA).

Kathy and Charlynn assert that title to Pick Place…