traditional common law rule (majority)(In re Trust of allow deviation only if trust purpose cannot be Stuchell): accomplished without making a change modern trend (minority): allow modifications to further interests of trust (Court grants equitable In re Riddell deviation in form of supplemental needs trust because that is what settlor would have wanted) termination of trusts automatic termination shall last until youngest child is 30 years is “Trust Earl’s old.” Earl dead and his youngest child is 30 years old. Does the trust terminate? YES beneficiaries and settlor agree to terminate, trustee disagrees objection of trustee is no hurdle when ALL beneficiaries and settlor agree to terminate the trust beneficiaries agree, settlor is dead, and trustee disagrees (fights for continuation of trustee and his trustee fees) doctrine (In if continuance of the trust Claiflin Re Estate of Brown): without modification or termination is necessary to carry out a material purpose of the settlor, the beneficiaries cannot compel modification or termination note: discretionary trusts, spendthrift trusts, and support trusts almost always qualify as having a material purpose and will not be modified or terminated; protection lasts only as long as RaP allows no in England Claflin doctrine doctrine is under attack in U.S. Claflin Restatement 3rd section 65: Court should weigh reasons for termination against material purpose UTC section 411 (b): be terminated if continuance of the “may trust is not necessary to achieve any material purpose of the trust” example: for the professional education of 2 To “T A’s children, and after they are all educated to be distributed
traditional common law rule (majority)(In re Trust of Stuchell): allow deviation only if trust purpose cannot be accomplished without making a change modern trend (minority): allow modifications to further interests of trust In re Riddell (Court grants equitable deviation in form of supplemental needs trust because that is what settlor would have wanted) termination of trusts automatic termination “Trust shall last until Earl’s youngest child is 30 years old.” Earl is dead and his youngest child is 30 years old. Does the trust terminate? YES beneficiaries and settlor agree to terminate, trustee disagrees objection of trustee is no hurdle when ALL beneficiaries and settlor agree to terminate the trust beneficiaries agree, settlor is dead, and trustee disagrees (fights for continuation of trustee and his trustee fees) Claiflin doctrine (In Re Estate of Brown): if continuance of the trust without modification or termination is necessary to carry out a material purpose of the settlor, the beneficiaries cannot compel modification or termination note: discretionary trusts, spendthrift trusts, and support trusts almost always qualify as having a material purpose and will not be modified or terminated; protection lasts only as long as RaP allows no Claflin doctrine in England Claflin doctrine is under attack in U.S. Restatement 3rd section 65: Court should weigh reasons for termination against material purpose UTC section 411 (b): “may be terminated if continuance of the trust is not necessary to achieve any material purpose of the trust” example: To “T for the professional education of A’s 2 children, and after they are all educated to be distributed
WillsandTrustsOutline.docx