Also known as: Uniform Trust Code · Uniform Trust Code (UTC) · UTC
Written by attorneys · grounded in primary & secondary sources — see below
A model statute providing comprehensive rules for the creation, administration, modification, and termination of trusts. The code supplies default provisions on trustee duties, beneficiary rights, and equitable deviation that apply unless the trust instrument states otherwise.
Ursula Upton created a trust leaving an outright remainder to her grandson after his parents' life estates. Years later the grandson suffered a disabling accident that would have disqualified him from government benefits. The court authorized conversion of the remainder into a special needs trust because the change preserved assets for the beneficiary and advanced the settlor's original purpose under circumstances she had not foreseen.
Umar Underwood created a revocable living trust and named his daughter as trustee. While Umar remained alive and competent, the daughter made distributions that favored herself over contingent remainder beneficiaries. The court held that the trustee owed fiduciary duties exclusively to Umar, so the remainder beneficiaries could not sue for breach during the settlor's lifetime.
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A court may modify either administrative or dispositive provisions when circumstances not anticipated by the settlor make the modification necessary to further the trust's purposes. The modification must be shown to preserve assets or better fulfill the settlor's intent.
While a trust is revocable the trustee owes duties exclusively to the settlor. Rights of other beneficiaries are subject to the settlor's control and do not give rise to enforceable claims against the trustee.
Yes. Reformation is available upon clear and convincing evidence that a mistake of fact or law affected the terms and that the reformation would carry out the settlor's intention.