Modification and Termination of Trusts Flashcards
(10 cards)
What happens if the trustee and the beneficiary are the same person?
The titles merge and the trust terminates.
Where the term of a trust has run, what is the result?
The trust terminates
Where all the objectives of a trust have been met, what result?
The trust terminates
Under the UTC, can a settlor amend or terminate a trust?
Yes, unless the terms of the trust make it irrevocable.
Under the common law, can a settlor amend or terminate a trust?
No. Under the common law, a trust is irrevocable unless the settlor expressly reserves the right to revoke.
What are the ways that beneficiaries can terminate a trust?
1) all beneficiaries and the settlor agree to terminate the trust; or 2) all beneficiaries but NOT the settlor agree to terminate the trust *and it does not violate a material purpose of the trust.
How is property in a trust distributed where all beneficiaries to a trust agree to terminate the trust?
However the beneficiaries agree to distribute it.
Does a settlor’s objection to termination of a trust affect the termination if the beneficiaries have all agreed to terminate?
No
When can a trustee terminate a trust?
A trustee can terminate a trust if it is 1) worth less than $50,000; and 2) the amount is insufficient to justify the cost of administration of the trust. The trustee must also supply the Bs with notice.
A court may reform the terms of a trust to reflect the settlor’s intent if a mistake in the terms is shown by ______________________.
clear and convincing evidence.
