Trust Modification

Question 1

Modification (Majority View)

Answer 1

A trust may only be modified by a settlor who:
1) expressly reserved power to modify, or
2) has the power to revoke the trust

Question 2

Modification (Minority View)

Answer 2

A settlor is free to amend or revoke a trust without express authority.

must be in signed writing

Question 3

Modification (UTC)

Answer 3

May be modified in following instances:
1) by settlor
2) with settlor and beneficiary consent
3) with beneficiary consent & court approval
4) modification will further purposes of the trust
5) cy pres doctrine
6) value of trust property is insufficient to justify cost of admin
7) necessary to conform to settlor’s intent or tax objectives

Question 4

Equitable Deviation Doctrine

Answer 4

If continuing a trust on its terms would be impracticable or wasteful a court may modify terms of trust.

Question 5

Additions Clause

Answer 5

When settlor anticipates changing trust assets, an additions clause should be added to the trust instrument.

trustee retains power to accept or reject additions