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Bruce’s Trust – Difficult
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This question should be answered using three IRAC structures. Please include all relevant key words in your answer.
Bruce sets up a trust to benefit his children named Chris, Carrie, Clara, and Debbie. Chris, Carrie, and Clara are adults, while Debbie is a minor. The distribution date is in five years. Chris has a son, Elliott, while Carrie has a daughter, Ellen. The terms of the trust specify that Carrie’s interest should go to Debbie upon Carrie’s death, but do not clarify what should happen to the interests of the other beneficiaries upon death. A month later, Chris and Carrie die, and Clara obtains a court order terminating the trust on her and Debbie’s behalf. However, a representative for Debbie argues that the trust may not be terminated without Debbie’s consent, and provides evidence that there is a conflict of interest between Clara and Debbie. Similarly, representatives for Elliott and Ellen argue that the trust may not be terminated without their consent, though there is no conflict of interest.
Under the Uniform Trust Code, can Clara terminate the trust without the consent of Elliott, Ellen, and Debbie?
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To answer this question, you will need to think about and discuss whether Elliott’s consent is needed (can a beneficiary who does not survive the distribution date be the recipient of that interest?), whether Ellen’s consent is needed, and whether Debbie’s consent is needed, despite her status as a minor.
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