Also known as: material purposes of the trust · material purpose doctrine
Written by attorneys · grounded in primary & secondary sources — see below
A core objective that motivated creation of a trust. Modification or termination of a noncharitable irrevocable trust on beneficiary consent alone is permitted only when the change does not contradict that objective or when continuation is unnecessary to achieve it.
Maria and Luke, the only beneficiaries of an irrevocable trust holding a family farm, petition the court to sell the land and distribute proceeds after the settlor's death. The trust instrument directs that the farm remain in agricultural use and in family hands. The court denies the petition because the proposed sale would contradict the settlor's core objective of preserving the land for ongoing family agricultural operations.
All qualified beneficiaries of an irrevocable trust petition for removal of the current trustee after a substantial change in circumstances makes continued service inefficient. A suitable successor trustee is available. The court grants removal because it best serves beneficiary interests and does not contradict the settlor's core objective of preserving family assets for future generations.
Select any source to read its text and confirm it supports the definition.
All beneficiaries must consent and the court must conclude that continuation is not necessary to achieve any material purpose of the trust. The material purpose inquiry focuses on core objectives expressed in the trust instrument, such as long-term retention of specific assets or delayed distributions to protect younger beneficiaries.
Supporting sources
No. A spendthrift provision is not presumed to constitute a material purpose. The court must examine the trust instrument and surrounding facts to determine whether the settlor intended the provision to serve as a core objective that would bar modification or termination.
Supporting sources
The court may still approve termination if the change could have been granted had all beneficiaries consented and the interests of nonconsenting beneficiaries will be adequately protected. This standard prevents a single beneficiary from blocking relief while safeguarding protected interests.
Supporting sources
Removal is permitted when requested by all qualified beneficiaries if it best serves beneficiary interests, a suitable successor is available, and removal is not inconsistent with a material purpose of the trust. The analysis ensures the change aligns with the settlor's core objectives.
Supporting sources
…terminate it and to distribute the proceeds to the life tenants. We reverse. The primary issue raised on appeal is whether any material purpose of the trust remains to be accomplished, thus barring its termination. The appellant/trustee also raises the closely related issue of whether all beneficiaries are before the court, i.e., whether the…