DET Grant Practice Test

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Under the Claflin doctrine, when may an irrevocable trust be modified or terminated?

The Claflin doctrine requires settlor consent to modify irrevocable trusts.

The Claflin doctrine prohibits any modification to irrevocable trusts.

Under the Claflin doctrine, an irrevocable trust can be modified or terminated if such is not contrary to a material purpose of the trust and all the beneficiaries consent.

The key idea is that some irrevocable trusts can be adjusted if all beneficiaries agree and the change does not defeat a material purpose of the trust. The Claflin doctrine allows modifications or termination when the proposed change would not undermine the trust’s essential aims, and everyone who has a present interest consents. This reflects a balance: it avoids waste or impractical administration while protecting the trust’s fundamental goals. It doesn’t require the settlor’s consent, it doesn’t prohibit changes outright, and it clearly applies to irrevocable trusts, not only revocable ones.

The Claflin doctrine only applies to revocable trusts.