Trust Modification + Termination

Question 1

How can a trust be terminated

Answer 1

expiration
material purpose
unfulfilled martial purpose doctrine
settlors power

Question 2

How is material purpose satisfied?

Answer 2

trust purpose is satisfied trust terminates

Question 3

What is unfulfilled material purpose and its affects?

Answer 3

Clafin Doctrine

S is no longer alive, beneficiary want to terminate the trust prematurely and trustee opposes

Trustee is allowed to do this is trust is still serving some material purpose

Question 4

When can settlor terminate?

Answer 4

unilateral terminate if EXPRESSLY terminate in trust documents

if didn’t, they can still terminate if settlor and all beneficiaries consent

Question 5

when can settlor modify?

Answer 5

if alive; unilaterally modify unless irrevocable
if dead: modify if all beneficiaries agreee with consistent material purpose or unforeseen event has frustrated purpose of trust (also called equitable deviation)

Question 6

Can trustee terminate trust?

Answer 6

NO

Question 7

How to remove trustee?

Answer 7

they are incapable of performing duties
material breach of duty
trustee develops conflict of interest
serious conflict between T and beneficiary
trust persistently performs poorly as results of T action or inaction