Modification, Termination, and Reformation

Question 1

A settlor, acting alone, can terminate or modify a trust IF . . . (2)

Answer 1

The instrument does not explicitly state that it is irrevocable; and

The settlor substantially complies with all provisions in the trust pertaining to the form that the proposed action must take (e.g., in writing, delivered to trustee, etc)

Question 2

Beneficiaries, all of whom are sui juris (i.e., old enough), can terminate a trust ONLY if . . . (2)

Answer 2

All beneficiaries consent; and

There is no further truste purpose to be served.

Question 3

A ST Clause will/won’t make a trust indestructible.

Answer 3

Will

Question 4

When and only when can a ST Trust be terminated? (2 needed)

Answer 4

Consent of all bennies

Settlor agrees to termination

Question 5

When can a court terminate a trust?

Answer 5

It it becomes uneconomical to continue

Question 6

When can a court modify a trust?

Answer 6

If an unanticipated change of circumstances make the administrative terms impossible, impractical, or wasteful to achieve.

Question 7

A court can reform a trust to achieve what?

Answer 7

Tax objective of the settlor.