Also known as:equitable deviation · deviation doctrine
Written by attorneys · grounded in primary & secondary sources — see below
A doctrine under which a court may modify the administrative or dispositive provisions of a trust when circumstances not anticipated by the settlor arise and the modification will further the trust's purposes.
Sources & Authorities
How it applies
Common Examples
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Disability Prompts Special Needs Conversion
Ella Emerson created a trust directing that her restaurant holdings pass outright to her son Eric at her death. Years later Eric suffered a traumatic brain injury that left him unable to manage the businesses. The trustee petitioned to convert the remainder into a special needs trust that would preserve the assets and protect Eric's eligibility for public benefits. The court granted the petition because the injury was unanticipated and the change better carried out Ella's purpose of providing long-term support.
Court Allows Administrative Adjustment
Edward Everett established an irrevocable trust holding shares in a family manufacturing company and directed that the shares pass outright to his grandson Edgar at age thirty. After Edward's death a factory accident left Edgar permanently disabled and dependent on means-tested benefits. The successor trustee petitioned to modify the trust's administrative provisions governing distribution timing so the shares could remain in trust and protect Edgar's eligibility. The court approved the adjustment because the accident was unforeseen and the change prevented defeat of the trust's core purpose.
Select any source to read its text and confirm it supports the definition.
Cases
Restatements
Casebooks
In re Stephen L. Chapman Irrevocable Trust Agreement953 N.E.2d 573 (Ind. App. 2011)
Common questions
Frequently Asked
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Does equitable deviation permit changes to dispositive as well as administrative trust terms?+
Modern statutes expand the doctrine to allow modification of both administrative and dispositive provisions when unanticipated circumstances arise and the change furthers the trust's purposes. Courts have approved conversion of an outright remainder into a special needs trust even though that alters the form of the beneficial interest.
Supporting sources
What must a petitioner show to obtain equitable deviation?+
The petitioner must establish that circumstances the settlor did not anticipate have occurred and that the proposed modification will better carry out the purposes of the trust. It is not enough that the change would be advantageous. The modification must align with the settlor's underlying intent under the new facts.
Supporting sources
Can a court deny equitable deviation simply because the modification affects a vested remainder interest?+
No. The doctrine focuses on whether unanticipated circumstances justify the change to further trust purposes, not on whether the interest is vested or the modification is labeled dispositive. Courts routinely permit conversion of outright remainders into special needs trusts when disability threatens to defeat the settlor's goal of long-term support.
Supporting sources
157 P.3d 888 (Wash. Ct. App. 2007)Wills Trusts and Estates
…463. II. TRUST MODIFICATION ¶ 12 Ralph asserts that the trial court had the authority to modify the trust under both the equitable deviation doctrine and under the plenary power granted by TEDRA. TEDRA states that it is the Legislature's intent to give courts full and ample power to administer and settle all trust matters. RCW…
Trusts and Estates Trusts and Future InterestsTrusts · ModificationUBEFoundational