유언대용신탁과 위탁자 사후의 수익자 및 잔여재산의 귀속 - 대법원 2024. 4. 16. 선고 2022다307294 판결 -

This case note examines the Supreme Court decision 2022Da307294, delivered on April 16, 2024, which addresses the validity of a will-substitute trust in which the trustee becomes the sole beneficiary upon the settlor’s death and the residual property distribution. The case involved an elderly settlor who entrusted real property to a lineal descendant, stipulating that the settlor would receive benefits during his lifetime and that the lineal descendant serving as trustee would become the sole beneficiary upon the settlor’s death. The primary legal issues were: (i) whether this arrangement violated Article 36 of the Trust Act, which prohibits trustees from gaining benefit from the trust property; (ii) whether the invalidity could be limited to the posthumous portion, leaving the lifetime portion valid; and (iii) how residual property should be allocated upon invalidation of the posthumous portion. The Supreme Court held that designating the trustee as the sole beneficiary was void under Article 36, but the lifetime portion remained valid under Article 5(3), which allows separable provisions to stand. Upon invalidation, the trust terminates at the settlor’s death, and residual property distribution follows the trust agreement; absent such provisions, Article 101 applies. Interpretation of such provisions should be based on the settlor’s intent. This case is the first to address posthumous beneficiary designations and the attribution of residual property in will-substitute trusts. It establishes the “no-profit” rule for trustees of such trusts and underscores the importance of honoring the settlor’s intent when interpreting trust agreements. It also highlights the need for legislative reform to enhance the practical utility of will-substitute trusts.