Summary 2012 WY 154

Summary of Decision December 13, 2012

Justice Davis delivered the opinion for the Court. Reversed and Remanded.

Case Name: IN THE MATTER OF THE MODIFICATION OF THE MARK E. DOWELL IRREVOCABLE TRUST #1, dated the 16th of May, 2000: ELIZABETH L. DOWELL v. MARK E. DOWELL

Docket Number: S-12-0098

URL: http://www.courts.state.wy.us/Opinions.aspx

Appeal from the District Court of Natrona County, Honorable David B. Park, Judge.

Representing Appellant: Ann M. Rochelle of Rochelle Law Offices, P.C., Casper, Wyoming; Douglas McLaughlin of Law Office of Douglas R. McLaughlin, Casper, Wyoming. Argument by Ms. Rochelle.

Representing Appellee: Judith Studer and Tassma A. Powers of Schwartz, Bon, Walker & Studer, LLC, Casper, Wyoming. Argument by Ms. Studer.

Date of Decision: December 13, 2012

Facts: While he and Appellant Elizabeth (Betsy) Dowell were still married, Appellee Dr. Mark Dowell created an irrevocable life insurance trust (ILIT) naming Ms. Dowell as its primary beneficiary and their two children as contingent beneficiaries. The couple divorced five years later. Six years after the divorce, Dr. Dowell filed a petition to modify the trust, in which he contended that he did not need to obtain Ms. Dowell’s consent to modify because she had relinquished her beneficial interest in the property settlement agreement incorporated into their divorce decree. The district court agreed. Ms. Dowell appealed from the district court’s order granting summary judgment to Dr. Dowell.

Issues: Did Ms. Dowell waive her expectancy in an irrevocable life insurance trust by consenting to the terms of a property settlement agreement which was incorporated in the parties’ decree of divorce?

Holdings: Because the Dowell’s divorce decree falls short of the Cellers benchmark, it cannot be said to have divested Ms. Dowell of her status as the primary beneficiary of the ILIT as a matter of law. Accordingly, the Court reversed the summary judgment granted to Dr. Dowell to the extent it determined that Ms. Dowell was not a qualified beneficiary whose consent was necessary to permit the trial court to judicially modify the ILIT. The Court also remanded and instructed the district court to grant Ms. Dowell’s summary judgment motion on that issue, as the record before the Court as a matter of law does not reflect an adequate waiver of her status as a qualified beneficiary of the ILIT.

Summaries are prepared by Law Librarians and are not official statements of the Wyoming Supreme Court

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