In West 17th Res. LLC v. Pawelek, children of a grantor sued the grantees, alleging that the grantor did not convey a trust’s ownership interest in the property because the grantor did not indicate her capacity as a trustee in the deed. No. 04-14-00668-CV, 2015 Tex. App. LEXIS 12901 (Tex. App.—San Antonio December 23, 2015, no pet. history). The trustee signed the deed, conveying “all” of certain defined property, but the trustee simply signed her name without designating whether she was signing “individually” or “as trustee.” The grantees argued that the trustee transferred both her 1/6 individual interest and the trust’s 1/10 interest when she, along with the other members of the family, conveyed “all” of the subject property.
The court of appeals ruled for the grantees. It held that grantors “have cited no authority and we have found none that a grantor’s failure to specify her capacity either “individually” or “as trustee” nullifies a deed’s purported conveyance of property that the grantor holds in trust. The court held that the trustee did not intend to reserve the trust’s 1/10 interest via her signature. The court held that the plain language of the deed conveyed all of the family’s and trust’s interest in the property.