Termination/Modification

Question 1

settlors intent

Answer 1

• settlor must expressly reserve the right to terminate a trust
• otherwise settlor needs approval of all B
• In Texas, presumption is reversed- trust is presumed revocable unless settlor explicitly says otherwise

Question 2

modification

Answer 2

-settlor can modify because the trust is presumed to be revocable (modifiable)

Question 3

changed circumstance

Answer 3

-if settlor is dead and all the B agree to modify a court can modify a trust if an unforeseen event frustrates the purpose of the trust

Question 4

mod/term

Answer 4

• T does not have the power to unilaterally terminate or modify a trust
• trustee removal- terms of a remedy for when the trustee beached
• most courts consider trustee removal on the case

Question 5

How to get rid of T

Answer 5

• T became incapable of performing her duties
• trustee materially breached duties
• conflict of interest arose
• serious conflict between T and one of the B arose
• T persistently performed poorly as a result of the T’s actions or inactions

Question 6

resignation

Answer 6

• T has the ability to resign

- either trust or instrument will outline this procedure or the T must petition the court to authorize a resignation