Last year we delved into some of the problems associated with trust termination. And we learned that some jurisdictions, like Maine, abolished the presumption that a spendthrift provision is a material purpose of a trust. Therefore, in states like Maine, a spendthrift clause may not necessarily prohibit the termination of a trust.
Today, we turn to Arkansas, a state that – unlike Maine – has codified the common law presumption that “[a] spendthrift provision in the terms of the trust is presumed to constitute a material purpose of the trust.” Ark. Code Ann. § 28-73-411(c). But, that’s not our focus today. Today, we want to look at what type of situation might permit termination of a trust when a statute permits trust termination where “the trust’s purposes, as expressed in or implied by the circumstances surrounding the trust, as a result of circumstances not foreseen to theRead More