IV. Modification and Termination of Express Trusts

Question 1

General Rule

Answer 1

• Trust is irrevocable (and unamendable) unles SETTLOR EXPRESSLY RETAINS THE RIGHT TO REVOKE OR AMEND

Question 2

Judicial Modification

Answer 2

NOT TERMINATION

Courts may direct or permit trustee to modfiy terms of trust if establisehd by CLEAR & CONVINCING EVIDENCE that,

• owing to circumstances not KNOWN OR ANTICIPATED by the settlor,
• compliance with trust terms woudl
• DEFEAT
• or SUBSTANTIALLY IMPAIR
• accomplishment of trust puproses

Question 3

Judicial Termination

Answer 3

NOT MODIFICATION

May terminatate upon finding that:

1. COSTS OF ADMIN are defeating pruposes of trust;
2. Trust purposes have been FUFILLED or become ILLEGAL or IMPOSSIBLE to fufill
3. OR due to UNANTICIPATED CIRUCMSTANCES, continuation would defat or substantially impair trust pruposes

Question 4

Judicial Division or Consolidation

Answer 4

Upon a showing of GOOD CAUSE AND NOTICE to all beneficiaries, a court may direct the division or consolidation of two or more trusts (whether or not creaed by same settlor) if division or consiolation:

1. is not contraty to SETTLOR’S INTENT;
2. will FACILITATE trust managmenet; OR
3. is in the BENEFICIARIES’ best interest