Trust instruments occasionally permit the trustees – sometimes with or without the beneficiaries’ consent – to terminate the trust early under certain circumstances. Why continue a trust or be forced to go into court when, for example, its purpose has been fulfilled? The Elaine Radlick-Trupp Revocable Trust gave the trustees broad authority to terminate the trust. The trustees could discontinue the trust when they determined discontinuance to be justified, when it was not economically sound to continue, or when they determined that termination was in the best interests of the beneficiaries because of unforeseen circumstances. In the Michigan case of Trupp v. Naughton (unpublished), several of the co-trustees of the trust may have inadvertently triggered the termination provision through their actions.
The trust contained two real properties and we will focus onRead More