Wills, Trusts, and Estates
There are four clear situations from this rule that a trust cannot be terminated:
- It is a spendthrift trust.
- The beneficiary is not to receive the principal until attaining a specified age.
- Just requiring waiting so many years does not imply a material purpose.
- It is a discretionary trust.
- It is a trust for the support of the beneficiary.
These are not the only situations though. Any time there is a contrary material purpose, modification or termination is prohibited.
This has since been codified in UTC § 411(b), although not requiring every beneficiary to consent.