Moon v. Lesikar

Woodrow V. Lesikar established a revocable family trust. Woodrow named himself and his son, Woody Lesikar (defendant), as co-trustees. Woodrow was to receive all the income from the trust assets during his lifetime. After Woodrow’s deaths, the trust’s assets would be distributed to various beneficiaries, including Woody and his sister Carolyn Ann Lesikar Moon (plaintiff). The trust specifically stated that 10,000 shares of stock in West Houston Airport Corporation would go into a trust for Woody. Several years later, Woodrow created a new trust agreement that modified, amended, and superseded the original trust agreement. This second trust was also a revocable trust for the benefit of identified family members, with Woodrow retaining trustee powers and income from the trust during his lifetime. This trust did not specifically mention the airport stock. The trust’s residuary, meaning any property not specifically given to someone else, was to be divided between Woody and Carolyn. After the second trust was created, Woodrow transferred the almost $200,000 worth of airport stock out of the second family trust and into a new trust that benefited only Woody’s children in exchange for $2,000 from Woody. When Woodrow later died, Carolyn sued, challenging several estate matters, including the transfer of the airport stock out of the family trust for such a small amount. The trial court granted summary judgment for Woody on the stock transfer, dismissing Carolyn’s claims relating to that transaction. Carolyn appealed.