Trust Termination

Question 1

Termination Reasons

Answer 1

1) revoked or expires pursuant to its terms
2) material purpose has been achieved
3) trust has become unlawful, against public policy, impossible
4) settlor and all beneficiaries consent
5) beneficiaries consent & court decies continuance is not necessary to achieve purpose
6) termination will further trust purpose b/c unforeseen circumstances
7) court uses cy pres
8) trust property insufficient for admin costs

Question 2

Ways to Amend/Revoke

Answer 2

1) substantial compliance with method in trust terms
2) later will or codicil
3) other method manifesting clear and convincing evidence of settlor’s intent

Question 3

Distribution Upon Termination

Answer 3

Trustee shall proceed expeditiously to distribute trust property.

Question 4

Conditions re Marriage/Divorce

Answer 4

A condition in will/trust that prohibits marriage or requires divorce are void against public policy.