Termination by Consent
• 337 – all beneficiary are adult and competent – may terminate if not frustrating material purpose
• 338 – Settlor and beneficiary may agree
– Since settlor is alive, don’t have to look at material purpose, since can change mind
• Must have consent of all beneficiaries and can’t violate a material purpose (US “Claflin doctrine”):
– Fact that has more than one beneficiary is not material
– Spendthrift trust language is material
• In England, can do anything – testator intent is disregarded
– Claflin doctrine prevents this in the US
• Bayley
– Prop 123.002, 123.003
– Parens patriae – AG represents all charities so that charities don’t have to litigate
– Charity wins and trust terminated
• Hatch
– Self-settled trust
– Refuses to apply doctrine of worthier title
– Court says “to X and remainder to Y” means exactly that
– Prop 5.042a – also dismisses Rule in Shelley’s Case
– Court says can’t terminate trust because heirs (who are these people!? They’re determined at death!) have remainder
– Can appoint guardian ad litem, but they’re then arguing for settlor to give all because will get it all when settlor dies
• Power of appointment could take all benefits from remaindermen
• NY doesn’t require unborn consent (Restatement 3rd agrees)
We have located some similar legal questions and legal question categories. Check out these challenging questions that askquestions about Defenses and are similar to What do you mean by Termination by Consent?. Also, we have included a list of some of our more popular legal question categories. These categories are based on what everyone is asking and answering.
What's Your Answer to "What do you mean by Termination by Consent?"