In re: Trust Agreement of Karl Krieg

── In re: Trust Agreement of Karl Krieg ── Court: Hawaii Intermediate Court of Appeals Date: May 28, 2026 Category: General NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER Electronically Filed Intermediate Court of Appeals CAAP-XX-XXXXXXX 28-MAY-2026 07:53 AM Dkt. 88 SO NO. CAAP-XX-XXXXXXX IN THE INTERMEDIATE COURT OF APPEALS OF THE STATE OF HAWAIʻI IN RE TRUST AGREEMENT OF KARL KRIEG, Settlor, (CASE NO. 3CTR-XX-XXXXXXX) ___________________ IN THE MATTER OF MARGUERITE KRIEG REVOCABLE TRUST AGREEMENT, DATED DECEMBER 28, 1993 (CASE NO. 3CTR-XX-XXXXXXX) APPEAL FROM THE CIRCUIT COURT OF THE THIRD CIRCUIT SUMMARY DISPOSITION ORDER (By: Leonard, Presiding Judge, Hiraoka and Guidry, JJ.) Respondent-Appellant Alexander Krieg (Alexander) appeals from the: (1) July 11, 2023 "Findings of Fact, Conclusions of Law, and Order Granting Petitioner[-Appellee] Eric Karl Krieg's [(Eric)] Motion for Summary Judgment on Petition for Instructions and Relief for Breach of Trust, Filed February 9, 2022 [Dkt. 24] and Order Denying the Motion for Summary Judgment of [Alexander], as the Successor Trustee of the Karl Krieg [(Karl)] Revocable Trust Agreement [(Karl's Trust)]  NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER Dated December 28, 1993, as Amended Filed April 21, 2023 [Dkt. 140]" (Summary Judgment Order); (2) October 19, 2023 "Order Granting [Eric's] Request for Attorneys' Fees and Costs Against [Karl's Trust]" (Attorneys' Fees Order); (3) October 19, 2023 "Final Judgment on Order Granting [Eric's] Motion for Summary Judgment on Petition for Instructions and Relief for Breach of Trust, Filed February 9, 2022"; and (4) July 26, 2024 "Amended Final Judgment as to All Claims and All Parties" (Final Judgment), entered by the Circuit Court of the Third Circuit 1 (probate court). In December 1993, Karl and his wife, Marguerite Krieg (Marguerite), separately executed revocable trust agreements: Karl's Trust, and the "Marguerite Krieg Revocable Trust Agreement dated December 28, 1993" (Marguerite's Trust). At the time of their execution, Karl's Trust and Marguerite's Trust were "A-B Trusts" that included mirror trust provisions. In July 1999, Karl and Marguerite each conveyed to their respective Trusts an undivided one-half fee simple interest, as tenants in common, in their Kailua-Kona residence (Real Property). The conveyance was executed by the "Apartment Deed to Trustees" (Apartment Deed) that was filed with the State of Hawaiʻi Bureau of Conveyances. 1 The Honorable Robert D.S. Kim presided over this matter. The Honorable Kimberly B.M. Tsuchiya entered the July 26, 2024 Final Judgment on temporary remand. 2  NOT FOR PUBLICATION IN WEST'S HAWAI‘I REPORTS AND PACIFIC REPORTER Karl became successor trustee of Marguerite's Trust upon her passing in June 2017. Pursuant to the terms of Marguerite's Trust: Marguerite's Trust became irrevocable upon Marguerite's passing; as successor trustee, Karl was to hold and administer the residuary trust estate as the "Family Trust"; and Karl was entitled to all net income of the trust for his lifetime. The principal of Marguerite's Trust could only be utilized as the trustee determined to be "necessary" for Karl's "support, maintenance, and health." Upon becoming successor trustee, Karl proceeded to transfer the principal of Marguerite's Trust -- i.e., Marguerite's one-half interest in the Real Property and Marguerite's Merrill Lynch account -- as