modification of trust/ powers of appointment

Question 1

2 ways trust can be modified or terminated

Answer 1

1) PURPOSE OF THE TRUST has been fulfilled or have become illegal or impossible to fulfill
2) CHANGED CIRCUMSTANCES: b/c of circumstances NOT KNOWN or anticipated by the S, the modification or termination order will FURTHER THE ACCOMPLISHMENT OF TRUST PROVISIONS

Question 2

what is the dollar limit where a trustee can terminate trust WITHOUT COURT approval

Answer 2

if trust value less than 100k

- if trustee determines that the cost of continuing trust would defeat purpose

Question 3

general powers of appointment

Answer 3

where donee has testamentary powers of appointment where not limited, can appoint the property to anyone including herself, OR her creditors, or her estate

Question 4

what must happen for person to exercise their power of appointment

Answer 4

power must EXPRESSLY be exercised

Question 5

are blanket exercise of appointments allowed

Answer 5

YES

x/c: where will states “that specifically refers to this power of appointment”

Question 6

what is a special power of appointment

Answer 6

testamentary power that LIMITS the class of persons who donee can appoint to

Question 7

Clafin doctrine

Answer 7

trust may be modified by B’s only if ALL B’s consent to the modification and the modification will not interfere with material purpose of trust.

Question 8

when can general power of appointment be transfered

Answer 8

1) during lifetime

2) by testamentary power is only exercisable by will.

Question 9

Majority rule for general power of appointments and residuary clauses

Answer 9

a residuary clause by itself, does not exercise any power of appointment held by the testator as donee.