Written by attorneys · grounded in primary & secondary sources — see below
A uniform act that supplies a comprehensive statutory framework governing the creation, administration, modification, and termination of trusts. The code supplies default rules on trustee powers and duties, beneficiary rights, spendthrift protections, and equitable deviation that courts apply unless the trust instrument provides otherwise.
Sources & Authorities
How it applies
Common Examples
2
Special Needs Trust Conversion
Ulrike creates a trust leaving an outright remainder to her granddaughter Ursula after Ulrike’s death. Years later Ursula suffers a disabling accident that would cause any outright distribution to disqualify her from government benefits. Because the settlor did not anticipate the disability, the court authorizes conversion of the remainder into a special needs trust that preserves assets for Ursula while still advancing the trust’s purpose of providing for her support.
Revocable Trust Duties
Ugo creates a revocable trust naming himself sole beneficiary during his lifetime and designating his niece Uma as remainder beneficiary. While the trust remains revocable, Ugo directs the trustee to make an investment the niece dislikes. The trustee follows the direction without notifying Uma. Under the code the trustee owes duties exclusively to the settlor, so the niece has no claim for breach.
· 3 primary sources
Select any source to read its text and confirm it supports the definition.
Cases
Uniform Acts
Restatements
Casebooks
Hornbooks
Course Outlines
Study Supplements
Fulp v. Gilliland998 N.E.2d 204 (Ind. 2013)
Common questions
Frequently Asked
4
What standard must a court satisfy before modifying a trust under the Uniform Trust Code’s equitable deviation provision?+
A court may modify administrative or dispositive provisions when circumstances not anticipated by the settlor have arisen and the modification will further the purposes of the trust.
To whom does a trustee owe fiduciary duties while a trust remains revocable under the Uniform Trust Code?+
While a trust is revocable the rights of the beneficiaries are subject to the control of the settlor and the trustee’s duties are owed exclusively to the settlor.
Supporting sources
Does the Uniform Trust Code permit a majority of co-trustees to act without unanimous consent?+
Yes. The code rejects the common-law unanimity rule and allows action by a majority of the co-trustees unless the trust instrument provides otherwise.
Supporting sources
Which creditors may reach a beneficiary’s interest despite a spendthrift clause under the Uniform Trust Code?+
The code limits exceptions to child-support and spousal-support creditors, certain governmental claims, and judgment creditors who provided services protecting the beneficiary’s interest in the trust.