97 N.E.3d 624
Ind. Ct. App.2018Background
- Deloris Brock created a revocable living trust (Feb. 15, 2002) that transferred her residence into the trust and provided distribution: 60% to Paul Cramer and 40% to James (James R.) Cramer after her death.
- The Trust allowed amendment by a written instrument (other than a will) "signed and delivered to the Trustee," and allowed disposal of "personal effects" by a separate signed written statement of the trustor.
- Brock executed a one-page “Separate Writing” (May 12, 2002) that listed specific personal items and, in handwriting, listed "House Lot #3" with recipients "Paul H Cramer J.R. Cramer Right of survivor if not sold." The Separate Writing referenced her will but did not mention the Trustee or expressly amend the Trust.
- Brock died in 2013; Paul served as trustee but died in 2014; James became successor trustee and Robert Edwards was appointed personal representative of Paul’s estate and successor trustee of Paul’s trust.
- James filed a petition seeking a declaration that the Separate Writing amended the Trust so he, as survivor, should receive the house; Edwards moved for summary judgment arguing the Separate Writing did not amend the Trust and real property must be distributed under the Trust terms.
- The trial court granted summary judgment for Edwards; the Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument (Cramer) | Defendant's Argument (Edwards) | Held |
|---|---|---|---|
| Whether the Separate Writing validly amended the Trust | Separate Writing manifested settlor’s intent to amend the Trust and create survivorship in James | Separate Writing did not meet Trust requirements or statutory standard for amending; it did not clearly amend or involve the Trustee | Court held the Separate Writing did not clearly and convincingly amend the Trust; summary judgment for Edwards |
| Whether the Separate Writing could transfer real property via the Trust’s separate-written-items provision | The handwritten reference to the house acted as a valid amendment/transfer to create survivorship | Even if treated as a separate written list for personal effects, statute and case law prohibit using such writings to dispose of real property | Court held such separate writings cannot be used to gift real property; real property must be distributed per Trust terms |
Key Cases Cited
- Schoettmer v. Wright, 992 N.E.2d 702 (Ind. 2013) (summary judgment standard and appellate review principles)
- Univ. of S. Ind. Found. v. Baker, 843 N.E.2d 528 (Ind. 2006) (trust interpretation is a question of law and intent of settlor governs)
- Malachowski v. Bank One, Indianapolis, 590 N.E.2d 559 (Ind. 1992) (courts may not rewrite trust instruments)
- Turner v. Kent, 15 N.E.3d 67 (Ind. Ct. App. 2014) (written statements referenced by a trust may dispose of tangible personal property but cannot be used to gift real property)