Modifications and Termination of Trust

Question 1

Power of Settlor

Answer 1

CL: trust must expressly reserve this right
UTC: trust is presumed revokable

Question 2

Power of Bennies

Answer 2

May compel modification or termination if all consent and modification or termination won’t frustrate any material purpose of the trust

If all consent- trustee is not liable

If trustee has right to terminate- settlor can’t object (unless frustrated)

Question 3

Judicial power

Answer 3

Terminate- illegal or impossible

Changed circumstances- court may change the admin terms but can’t deprive bennies of their interest