Trust - Termination Flashcards
Resignation of Trustee
Trustee can only resign if:
* he gets permission from a court
* all beneficiaries consent
* trust authorizes it
Trustee won’t fail merely because trustee resigns; court will appoint new one
Termination of Trust by Beneficiaries
Beneficiaries can terminate irrevocable trust if:
(i) all beneficiares consent
* required from existing and potential beneficiaries, including unborn and unascertained ones (must appoint rep/guardian ad litem for them)
(ii) termination won’t impair a material purpose of trust (or settlor can consent)
Revocation of Trust
Most states - trust presumed irrevocable unless settlor expressly reserves right to revoke
UTC: trust is presumed revocable
* If trust revocable, settlor can revoke. Trustee cannot terminate trust.
Death of Trust Beneficiary
Private trust requires definite beneficiaries; if all beneficiaries are dead, trust FAILS and resulting trust is created in favor of settlor/successors.
