Phillips v. Phillips
Appellant Melvin Phillips filed a probate court petition and objection to accounting, challenging actions of his siblings -- defendants Buddy Phillips and Marjorie Woodward (trustees) -- as trustees of a trust (Prob. Code, 16000 et seq.[1]) created by their mother, Beatrice Phillips, and as her attorneys-in-fact under a power of attorney ( 4400 et seq.). After a bench trial, Melvin[2] appeals from the judgment entered in favor of the trustees. We shall conclude that, with one exception, any breach of trust was excusable in the trial courts discretion under section 16440[3] because the trustees acted reasonably and in good faith. The one exception is that the trial court erred in failing to find an inexcusable breach of duty when the trustees took $500 out of a trust payment to Melvin to satisfy a personal debt Melvin owed to Buddy. Court shall partially reverse the judgment and remand for the trial court to determine the remedy for that single breach.
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