Also known as: substantial compliance rule · substantial compliance · substantial compliance doctrine
Written by attorneys — see sources below.
2 senses
A rule permitting a settlor to revoke or amend a revocable trust by substantially complying with a method specified in the trust terms. The rule treats minor deviations as effective when the settlor's intent is clear and no material purpose of the donor is impaired.
A rule permitting a settlor to revoke or amend a revocable trust by substantially complying with a method specified in the trust terms. The rule treats minor deviations as effective when the settlor's intent is clear and no material purpose of the donor is impaired.
A rule that substantial compliance with formal requirements imposed by a donor for exercising a power of appointment is sufficient when the donee knew of and intended to exercise the power and the attempted exercise did not impair a material purpose of the donor.
A rule that substantial compliance with formal requirements imposed by a donor for exercising a power of appointment is sufficient when the donee knew of and intended to exercise the power and the attempted exercise did not impair a material purpose of the donor.
Each sense below has its own examples, sources, and questions.
Steven Silva created a revocable trust that required any amendment to be executed by a signed writing delivered to the trustee. Years later Silva sent the trustee a detailed letter stating his intent to amend the distribution scheme and listing the changes. The trustee received the letter and began administering the trust according to the new terms. Because the letter substantially complied with the required method, the amendment is effective.
1 common questions
The settlor must demonstrate that the attempted revocation or amendment substantially followed the method stated in the trust terms. Courts examine whether the settlor's intent is evident and whether any deviation impaired a material purpose of the trust.
Supporting sources
Sophia Singh held a power of appointment that required any exercise to make specific reference to the power and to be executed by deed. Singh executed a will that expressly exercised the power and identified the intended appointees, though the will did not use the precise phrase required by the donor. Because Singh knew of the power and intended to exercise it and the omission did not impair any material purpose of the donor, the appointment is valid under the substantial-compliance rule.
2 common questions
No. The rule applies only to formal requirements imposed by the donor in the governing instrument. Statutory formalities are governed by separate provisions that do not incorporate the substantial-compliance standard.
Supporting sources
Courts look to the language of the instrument, the donee's knowledge of the power, and surrounding circumstances that confirm the donee acted with the purpose of exercising the power. Intent must be established before the substantial-compliance analysis proceeds.
Supporting sources