Modification and Termination of Trusts Flashcards
What happens if the trustee and the beneficiary are the same person?
The titles merge and the trust terminates.
Where the term of a trust has run, what is the result?
The trust terminates
Where all the objectives of a trust have been met, what result?
The trust terminates
Under the UTC, can a settlor amend or terminate a trust?
Yes, unless the terms of the trust make it irrevocable.
Under the common law, can a settlor amend or terminate a trust?
No. Under the common law, a trust is irrevocable unless the settlor expressly reserves the right to revoke.
What are the ways that beneficiaries can terminate a trust?
1) all beneficiaries and the settlor agree to terminate the trust; or 2) all beneficiaries but NOT the settlor agree to terminate the trust *and it does not violate a material purpose of the trust.
How is property in a trust distributed where all beneficiaries to a trust agree to terminate the trust?
However the beneficiaries agree to distribute it.
Does a settlor’s objection to termination of a trust affect the termination if the beneficiaries have all agreed to terminate?
No
When can a trustee terminate a trust?
A trustee can terminate a trust if it is 1) worth less than $50,000; and 2) the amount is insufficient to justify the cost of administration of the trust. The trustee must also supply the Bs with notice.
A court may reform the terms of a trust to reflect the settlor’s intent if a mistake in the terms is shown by ______________________.
clear and convincing evidence.
