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Modification And Termination Of Trusts Outline

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This is an extract of our Modification And Termination Of Trusts document, which we sell as part of our Wills and Trusts Outlines collection written by the top tier of Thomas Jefferson School Of Law students.

The following is a more accessble plain text extract of the PDF sample above, taken from our Wills and Trusts Outlines. Due to the challenges of extracting text from PDFs, it will have odd formatting:

MODIFICATION AND TERMINATION OF TRUSTS

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By the Settlor o Presumption
? if trust is silent re whether trust can be amended or revoked by trustors, trust is presumed to be revocable or amendable o

Methods
? must be in writing and deliver writing to then-serving trustee

o

Multiple Settlors
? if multiple trustors (settlors), one settlor can amend the trust to the extent that the settlor contributed assets to the trust (usually SP and half of CP)

o

Effect of Power to Revoke
? as long as trust remains revocable or amendable, do not need consent of beneficiaries to remove their beneficial interest

* Irrevocable trust may be allowed to be revoked by a court if have consent of all beneficiaries and can show the court that revoking the trust will not affect a material trust purpose o Revocation may still be allowed by ct if consent of most of beneficiaries if no material harm to dissenting beneficiaries and revocation will not affect a material trust purpose o Atty in fact (power of atty) status does not make one able to amend or revoke a principal's trust unless trust itself specifically allows it

By the Trustee o Uneconomical principal
? Trustee can amend or revoke a trust upon petition to the court if there are uneconomical to operate trust (if principal amt in trust is less than or equal to$20,000) o

Changed economic circumstances
? make trust impracticable, must be a general economic climate, not because of economic status of settlors or trustees or beneficiaries
? Look at circumstances not known or anticipated by trustor, AND as a result of changed circumstances, becomes difficult to fulfill a material trust purposeRapp v. IRS Note Case

* trust created by will but trust did not take into acct estate tax laws, reformed trust to go around tax laws, IRS sues that trust can't be modified to take into acct tax issues, state cts now recognize can modify trusts for

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