Breuning v. Breuning

15. Breuning v. Breuning

**Citation:** Court of Appeals Case No. 25A-TR-1491 (Ind. App. Feb. 9, 2026), 2026 WL 346166

Relevant Facts

• Tim Breuning (Appellee) is a beneficiary of the Willi Breuning and Ilene Breuning Living Trust Agreement created September 11, 2019.

• Ilene Breuning and Christine Morgan (Appellants) are co-trustees; Tim and Christine are children of Willi by his first wife.

• Willi and Ilene acquired Tennessee real estate as tenants by the entireties and transferred it to the Trust via quitclaim deed.

• Willi died on June 28, 2023; the Tennessee property remained in the Trust.

• Section 1.2 of the Trust provided that tenancy-by-the-entireties property "shall remain tenancy by the entirety property during the Settlors' lifetimes."

• Section 5.1 provided that upon Willi's death, the remaining trust estate must be distributed in equal shares to Ilene, Tim, and Christine.

Legal Issues

Whether the Tennessee property must be distributed under the general residuary provision (Section 5.1) or could be removed under tenancy-by-the-entireties principles.

Decision by the Court

The Indiana Court of Appeals reversed the trial court's summary judgment and remanded with instructions to enter summary judgment in favor of the Co-Trustees.

Reasons for the Decision

Section 1.2 unambiguously provides that tenancy-by-the-entireties property "shall remain tenancy by the entirety property" and the Settlors retain "all rights, privileges and obligations...as if that property were held by them free of the trust" until both Settlors' deaths. The most important right preserved is the right of survivorship. More specific terms control over inconsistent general statements.