CONN. GENERAL LIFE INS. v. FIRST NAT. BANK Case Brief

Supreme Court of Minnesota1977
262 N.W.2d 403 Trusts and Estates Wills and Succession Property

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Case Brief Summary & Legal Analysis

3 min read

tl;dr: A settlor’s will, purporting to cancel all prior trusts, failed to revoke a life insurance trust because the trust instrument required a specific method of revocation—written notice to the trustee during the settlor’s lifetime—which was not followed.

Legal Significance: This case affirms the majority rule that a revocable inter vivos trust cannot be revoked by will unless the trust instrument expressly permits it. The method of revocation specified in the trust document is exclusive.

Case Facts & Court Holding

Key Facts & Case Background

John W. Aughenbaugh created a revocable life insurance trust, naming First National Bank of Minneapolis as trustee and his then-wife and children as beneficiaries. The trust was to be funded by a life insurance policy. The trust instrument provided that the settlor could revoke or amend it “by a written instrument delivered to the Trustee.” Subsequently, Aughenbaugh divorced his first wife and married Marilyn Aughenbaugh. Shortly before his death, he executed a new will which stated it was intended to “supercede and cancel any previous wills or trusts established by me.” This will was not delivered to the trustee during the settlor’s lifetime. Upon Aughenbaugh’s death, both his widow, Marilyn, and the trustee claimed the insurance proceeds. The insurance company filed an interpleader action to resolve the competing claims. The trial court ruled in favor of the trustee, holding that the trust remained in effect. The widow appealed.

Court Holding & Legal Precedent

Issue: Can a settlor revoke a formal inter vivos trust through a general revocation clause in his will when the trust instrument specifies that revocation must be accomplished by a written instrument delivered to the trustee during the settlor’s lifetime?

No. The settlor’s will did not effectively revoke the inter vivos trust. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla p

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Legal Issue

Can a settlor revoke a formal inter vivos trust through a general revocation clause in his will when the trust instrument specifies that revocation must be accomplished by a written instrument delivered to the trustee during the settlor’s lifetime?

Conclusion

This case reinforces the principle that the formal requirements for revoking an Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliqui

Legal Rule

A revocable life insurance trust is a non-testamentary, inter vivos instrument. Where Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo co

Legal Analysis

The court's analysis proceeded in two parts. First, it affirmed the legal Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt

Flash-to-Full Case Opinions

Flash Summary

  • A revocable life insurance trust is an inter vivos (non-testamentary) instrument,
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu f

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