Modification may occur by settlor and beneficiary consent, by beneficiary consent where not inconsistent with a material purpose, on changed circumstances frustrating the trust's purpose, or to achieve tax objectives.
Nonjudicial settlement agreements permit some changes without court involvement.
Alternative Names:
Modification of Trust|Trust Amendment by Court
Why it Matters?
Material purpose is the limiting concept, since beneficiary consent alone cannot modify terms serving a purpose the settlor intended to persist, and spendthrift provisions are presumed material in many states which forecloses termination by agreement. Nonjudicial settlement agreements provide a faster route for matters within their statutory scope, which typically excludes changes to beneficial interests.
Frequently Confused with
Related terms
Frequently asked questions
What limits modification by consent?
What is a nonjudicial settlement agreement?
