Quick Summary

Here’s a summary of a recent Michigan Court of Appeals case involving a revocable trust, a pending divorce, and what happens when death occurs before the divorce is finalized.

In In re E. Earl Lyden Trust (Mich Ct App, 2024), a husband amended his revocable trust during a pending divorce to remove his wife as beneficiary and leave everything to his son from a prior marriage. He died before the divorce was completed. The court upheld the trust amendment, and the assets passed exactly as written.

The case highlights an important reality: divorce does not automatically freeze an estate plan.

The Case

Earl Lyden created a revocable trust in 2001. He retained the right to amend or revoke it at any time during his lifetime.

In 2018, the trust was amended to provide income to his wife, Denice, for her lifetime, with the remaining assets passing to his son.

In 2019, Denice filed for divorce. During the divorce proceedings, Earl consulted his attorney about changing his trust and was advised that he could amend it, though the divorce court would still divide marital assets under equitable principles if the divorce were completed.

In 2020, Earl amended the trust again, removing Denice entirely and naming his son as sole beneficiary and successor trustee. He specifically stated that he intended to make no provision for his wife in the trust.

Before the divorce could be finalized, Earl became incapacitated and then passed away.

Because the divorce never reached judgment, the trust controlled the distribution of those assets.

What the Court Decided

The Michigan Court of Appeals affirmed the probate court’s decision to uphold the trust amendment.

The court emphasized several key principles under Michigan law:

  • A revocable trust can be amended during the settlor’s lifetime, even during divorce.

  • A spouse does not have a vested right in a revocable trust while the settlor is alive.

  • Because the divorce never became final, no court division of marital property occurred.

  • The husband did not owe a fiduciary duty to his spouse regarding the revocable trust during the divorce proceedings.

As a result, the trust assets passed to the son exactly as the amended trust directed.

Did the Case Address Beneficiary Designations?

Not directly. The court did not specifically rule on whether the husband could change his beneficiary designations during the divorce. However, the opinion notes that he made those changes before the divorce was filed, and he did so with his wife’s knowledge and consent. While the court did not analyze those beneficiary designations in detail, it is likely they would have been treated similarly to the trust changes — meaning the updated designations would control who received the assets at death.

One important caveat: employer-sponsored retirement plans, such as 401(k) plans, are governed by federal law (ERISA). These plans generally require written spousal consent before a married participant can name someone other than their spouse as beneficiary. In other words, those beneficiary changes typically cannot be made during marriage (or a pending divorce) without the spouse’s agreement.

Simple Lesson

Estate planning and divorce law operate on parallel tracks — and timing matters more than people realize.

If a divorce is pending and one spouse dies before the divorce is finalized, the estate plan in place at death often controls the outcome.

Action Step

If divorce is pending — or even being discussed — review your estate plan immediately.

That review should include:

  • Your trust

  • Life insurance

  • Retirement accounts

  • Beneficiary designations

  • Powers of attorney

Waiting until the divorce is final may be too late.

Sometimes peace of mind starts with a simple conversation.  Call (517) 548-7400 or contact us here: https://www.michiganestateplans.com/contact