Trust Termiantion

Question 1

How is a revocable trust termianted

Answer 1

Settlor must expressly reserve the right to modify or terminate a trust in order to be granted such power, otherwise it will be irrevocable.

Question 2

How is a modification made to an irrevocable trust

Answer 2

while settlor is alive an can only occur with the consent of all beneficiaries and if the proposed change will not interfere with a primary purpose of the trust.

Question 3

When will a trust be terminated

Answer 3

when trust purpose accomplished

Question 4

Alt way a trust may be termianted

Answer 4

by consent if settlor is deceased/has no remaining interest, and all the bene’s consent

Unfiulfilled material purpose: a trustee can block a premature trust termination by the bene’s if the trust is shown to have an unfulfilled material purpose

court if the purpose becauems illegal impracticable or impossible

Question 5

Does the trustee have the power to terminate truste

Answer 5

No, unless the trust contains express termination provisions

Question 6

How is a trustee removed?

Answer 6

A court can remove a trustee if purpose of the trust would be frustrated by the trustee’s continuance in office or if the trustee violated a duty.