Godley v. Valley View State Bank, 277 Kan. 736

Summary

The Kansas Supreme Court reviewed whether an amendment to Mariza V. Toliver’s revocable trust validly changed the remainder beneficiaries and complied with the trust’s amendment provisions. The court held that the amendment was effective upon execution and delivery by the settlor, despite the successor trustee’s failure to sign and subsequent declination of the trusteeship. The judgment affirming summary judgment for Barbara Godley and Lynda Moore was affirmed.

Holdings

1. The March amendment was not an invalid bilateral trust agreement requiring Merrill Lynch's written acceptance. The original trust had already been validly created, and the March document amended and restated that trust rather than creating a new trust.
2. The March amendment was effective when Mariza signed it and delivered it to the trustee. Merrill Lynch's failure to execute the amendment, including its refusal to consent to increased obligations or changed duties, did not give it veto power over Mariza's reserved power to amend the trust; Merrill Lynch's later declination or resignation did not invalidate the amendment.

Questions Presented

1. Whether the March 25, 1998, amendment was invalid because Merrill Lynch, the named trustee, did not sign or accept it.
2. Whether the March 25, 1998, amendment complied with the original trust agreement's requirements for amendment, including delivery to the trustee and written consent for amendments increasing the trustee's obligations or changing its rights or duties.

Disposition

affirmed