Trust Modification & Termination
Trusts · Lesson 04
Trust Modification & Termination
這一課問的是：信託可否經設立人、受益人同意、法院、或當然修改或終止？
ActorActObjectStandardConsequence
Visual Scene · the picture in your head
Issue. May the trust be modified or terminated — by settlor, beneficiary consent, court, or operation of law?
這一課問的是：信託可否經設立人、受益人同意、法院、或當然修改或終止？
Core Terminology · 7 must-know
Tap a card to flip and reveal the meaning.
Claflin doctrine
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Trust cannot be terminated against unfulfilled material purpose.
Claflin 原則。
settlor consent
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Revocable trusts may be modified by settlor.
設立人同意。
beneficiary consent
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All beneficiaries may agree to modify, subject to Claflin.
受益人同意。
equitable deviation
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Court may modify trust due to changed circumstances.
衡平偏離。
material purpose
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Trust's central purpose not yet fulfilled.
重要目的。
termination by operation of law
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Trust ends when purpose accomplished or fails.
當然終止。
UTC
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Uniform Trust Code provides modern rules.
統一信託法典。
Issue · what this lesson is really about
May the trust be modified or terminated — by settlor, beneficiary consent, court, or operation of law?
這一課問的是：信託可否經設立人、受益人同意、法院、或當然修改或終止？
Trigger words & phrases that should flag this issue:
modifyterminateClaflinmaterial purposechanged circumstances
Expression Bank · how lawyers actually say it
Six function → sentence patterns. Use these in essay applications.
| Function | English sentence | 中文 |
|---|---|---|
| Apply settlor | Settlor of revocable trust may freely modify or revoke. | 可撤銷信託：設立人可任意修改撤銷。 |
| Apply Claflin | Termination by unanimous beneficiary consent is barred if material purpose unfulfilled. | 受益人一致同意之終止受 Claflin 阻卻。 |
| Apply equitable deviation | Court may modify trust where unforeseen circumstances frustrate purpose. | 衡平偏離：意外情況挫敗目的時。 |
| Apply UTC | UTC §411 modifies Claflin to permit court approval despite material purpose. | UTC §411 放寬。 |
Rule Sentence · the workhorse
A trust may be modified or terminated by the settlor (if revocable), by unanimous beneficiary consent (subject to the Claflin material-purpose doctrine), by court order on equitable deviation grounds, or by operation of law when the purpose is accomplished or fails.
Sentence Anatomy · 5 roles, 5 colors
Every rule sentence breaks into five visual roles.
Actor 行為人settlor / beneficiaries / court設立人 / 受益人 / 法院
Act 行為modifying or terminating修改或終止
Object 對象trust信託
Standard 法律標準Claflin + equitable deviation + UTCClaflin + 衡平偏離 + UTC
Consequence 後果trust altered or ended信託改變或終止
Casebook Snapshot · a real American case
Claflin v. Claflin
Holding. A trust providing for staggered age-based distributions to a beneficiary cannot be terminated by the beneficiary's demand for immediate full distribution, because the settlor's purpose of providing for staggered distribution at specified ages remains unfulfilled.
Why it matters. Claflin protects settlor intent against unanimous beneficiary demand: material purpose blocks termination.
Claflin：未完成重要目的阻卻受益人一致終止。
Common Mistakes · what trips students
✗ beneficiary 全體同意即可終止。
✓ Claflin: blocked if material purpose unfulfilled.
Claflin：未完成重要目的者阻卻。
✗ irrevocable 信託不可改。
✓ Court may modify under equitable deviation or UTC.
法院可依衡平偏離或 UTC 修改。
Mini IRAC · build the Application
Issue. May beneficiaries B1 and B2, the only beneficiaries of an irrevocable trust, unanimously terminate the trust to receive immediate distribution when the trust provides for distribution at age 30?
Rule. Under the Claflin doctrine, unanimous beneficiary consent cannot terminate a trust where a material purpose of the settlor remains unfulfilled.
Application (model). The trust provides for distribution at age 30; B1 and B2 are 22 and demand immediate distribution. Because the Claflin doctrine bars termination where a material purpose remains, the fact that the settlor's purpose of staggered age-based distribution is not yet fulfilled — and is plainly material — means unanimous beneficiary consent cannot terminate the trust.
Pick the right element for each blank:
g1.
g2.
g3.
Conclusion. Therefore, the trust cannot be terminated under Claflin (though UTC §411 may permit court-approved early termination if circumstances justify).
MBE Check · multiple choice
S's revocable trust provides discretionary income to S's daughter. S, while competent, wishes to terminate and reclaim the principal. May S do so?
Practice Drill · tap to build the rule
Drop the chips here in correct order:
Tap chips to add → tap chips in the target to remove: