American Nat. Bank of Cheyenne, Wyo. v. Miller
1995 WL 456216, 899 P.2d 1337, 1995 Wyo. LEXIS 129 (1995)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
An irrevocable trust may be terminated if all beneficiaries provide consent and the continuance of the trust is not necessary to carry out any remaining material purpose of the grantor.
Facts:
- In 1967, Evelyn S. Plummer established a trust, with American National Bank as the Trustee.
- The trust was to provide monthly payments to Plummer's daughter, Vivian Miller, and son-in-law, Grant E. Miller, for their lives.
- After the death of both Vivian and Grant E. Miller, the trust assets were to be divided among their 'then living children' (Davin, Hickey, and Miller, Jr.) in stages as they reached ages 23, 28, and 35.
- Any remaining assets after the final distribution to the grandchildren were to go to a scholarship fund at the University of Wyoming.
- Evelyn Plummer died in 1976 and Vivian Miller died in 1992.
- All three grandchildren are now over the age of 35.
- Grant E. Miller, though still living, relinquished his interest in the monthly payments and assigned them to his children.
- All beneficiaries—Grant E. Miller, his three children, and the University of Wyoming—consented to terminate the trust immediately, but the Trustee refused.
Procedural Posture:
- The beneficiaries of the Evelyn S. Plummer Trust filed an action for declaratory relief in the district court against the Trustee, seeking to terminate the trust.
- The beneficiaries filed a Motion for Summary Judgment.
- The district court granted summary judgment in favor of the beneficiaries, ordering the trust to be terminated.
- The Trustee appealed the district court's order to the Supreme Court of Wyoming.
- The district court ordered the Trustee to post a supersedeas bond at its own personal expense to stay the judgment pending the appeal.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Can an irrevocable trust be terminated before the time specified in the trust instrument if all beneficiaries consent and the trust no longer serves any material purpose of the grantor?
Opinions:
Majority - Kautz, District Judge
Yes, an irrevocable trust can be terminated if all beneficiaries consent and no material purpose of the grantor remains. The court formally adopted the principles of the Restatement (Second) of Trusts § 337, which balances the grantor's intent with the beneficiaries' interests. The court found that all beneficiaries had consented to the termination; the Trustee's argument regarding unborn contingent beneficiaries failed because the trust specified a per capita distribution to 'then living children,' precluding any interest for their heirs. Furthermore, the court concluded that no material purpose of the trust remained. The support purpose for Grant E. Miller was waived by his own relinquishment, and the purpose of delaying distribution to the grandchildren until they reached an age of maturity (35) had been fulfilled, as all were now over that age. The trust contained no spendthrift provision, and the use of Grant E. Miller's life was merely a measure for his own support, not an independent material purpose to delay distribution to the other beneficiaries.
Analysis:
This decision establishes the legal standard in Wyoming for the premature termination of a trust, formally adopting the widely recognized rule from the Restatement of Trusts. It clarifies that a trustee's duty to adhere to the trust's literal terms is not absolute and must yield when the grantor's substantive purposes have been accomplished and all beneficiaries desire termination. The ruling emphasizes that a 'material purpose' is more than a mere delay in enjoyment; it often involves protecting beneficiaries from their own improvidence (e.g., via a spendthrift clause), a factor absent here. The case provides a clear framework for future disputes, distinguishing between administrative timelines and the true, material goals of the person who created the trust.
