Modification of Trust

Question 1

Settlor’s Intent

Answer 1

Settlor can modify because trust is presumed to be revocable (or modifiable)

Question 2

Changed Circumstances

Answer 2

If settlor dead and all beneficiaries agree to modify, court can modify trust if an UNFORESEEN EVENT FRUSTRATES PURPOSE OF THE TRUST

Question 3

Doctrine of Equitable Deviation

Answer 3

Court may modify terms of trust without seeking beneficiary consent when:

(1) Unanticipated circumstances exist and court’s changes would further purposes of the trust; or
(2) Modified terms relate to management of the trust property and existing terms would be impracticable or wasteful or impair trust’s administration