Reformation is available on clear and convincing evidence of the settlor's intent and a mistake of fact or law affecting the terms. It may operate retroactively and applies even to unambiguous terms.
Scrivener's error is a recurring basis.
Alternative Names:
Reformation of Trust|Trust Correction
Why it Matters?
Reformation reaches unambiguous language, which distinguishes it from construction proceedings interpreting ambiguity and permits correcting a clearly written provision that nonetheless misstates intent. Drafting attorney testimony and file notes are the central evidence, which creates a conflict where the attorney faces potential malpractice exposure for the error being corrected. Tax-motivated reformation carries separate requirements for federal recognition.
Frequently Confused with
Related terms
Frequently asked questions
Does reformation reach unambiguous terms?
What conflict arises?
