528 A.2d 752 (Vt. 1987)
Andrew J. Brown died in 1977. He settled his entire estate in a trust held by the trustee under specific terms.1 The trust instrument directed that the trust be used to provide an education for the children of his nephew Woolson S. Brown.2 The trustee was authorized to use income and necessary principal for that purpose until the last child received an education and the trustee determined the purpose accomplished.3
Thereafter, the income and necessary principal were to be used for the care, maintenance, and welfare of Woolson S. Brown and his wife Rosemary Brown.4 They were to live in their accustomed style and manner for the rest of their lives.5 Any remainder upon their deaths was to be paid to their then living children in equal shares.6
The trustee carried out the educational provisions.7 After determining that the children's education was completed, the trustee began distributing trust income to the lifetime beneficiaries Woolson and Rosemary Brown.8 On June 17, 1983, Woolson and Rosemary Brown petitioned the probate court to terminate the trust.9 They argued that distribution of the remaining assets was necessary to maintain their lifestyle.10 Their children as remaindermen filed consents to the termination.11 The probate court denied the petition.12 The petitioners appealed to the Washington Superior Court.13
The superior court reversed the probate court's denial.14 It concluded that the educational purpose had been accomplished and that the trust could therefore be terminated.15 The trustee appealed that decision to the Supreme Court of Vermont.16 The superior court had found that Rosemary Brown was incapable of having more children and that the possibility of Woolson Brown fathering more children was remote.17
Whether any material purpose of the trust remains to be accomplished, thus barring its termination?18
Yes. The trust instrument establishes two distinct purposes.21 The educational purpose for the children of Woolson and Rosemary Brown was addressed when the trustee determined it accomplished and began income distributions to the lifetime beneficiaries.22 The second purpose requires the trustee to provide lifelong income for the care, maintenance, and welfare of Woolson and Rosemary Brown so they may live in their accustomed style and manner for the remainder of their natural lives, using all income and necessary principal.23
This purpose remains unaccomplished.24 The settlor's intention to assure a life-long income to Woolson and Rosemary Brown would be defeated if termination of the trust were allowed.25
The trust cannot be terminated because a material purpose of the settlor remains unaccomplished.26
Whether all beneficiaries are before the court, i.e., whether the class of beneficiaries has closed?27
The court did not reach the question of whether all beneficiaries are before the court.28
The court did not decide whether the class of beneficiaries has closed.32