Laycock

The decedent in this case, Spearl Ellison, purchased a substantial life insurance policy 13 years before his death and assigned all of his interest in the policy, including the right to any benefits, to an irrevocable life insurance trust he had established. When Ellison died the life insurance company paid $767,263.70 in death benefits to the trustee of the trust, Ellison’s grandaughter, respondent Lynda Laycock.

Shortly before Ellison’s death, appellants Leonard H. Hammer, Jr., Hammer Realty Group, Inc., and KanTex Hospitality, Inc. (collectively Hammer), had obtained a $4.65 million judgment against Ellison. Hammer asserted the proceeds of the life insurance policy were subject to its judgment. By way of a probate petition Laycock sought a declaration the proceeds of the life insurance policy were exempt from Hammer’s claim. Laycock moved for summary judgment on her petition and the trial court granted the motion.

On appeal we affirm. By its terms the trust was irrevocable. Thus, under well-established precedent, once Ellison transferred the policy to the trust, he no longer had any ownership interest in the policy and it was not subject to the claims of his…