Opinion ID: 1284856
Heading Depth: 1
Heading Rank: 2

Heading: Revocation of the trust by will.

Text: It is the general rule that where a settlor reserves the power to revoke a trust by a transaction inter vivos, as for example by notice to the trustee, he cannot revoke the trust by his will. Restatement, Trusts (2d) § 330, comment j ; Bogert, Trusts and Trustees, § 1001 (2 ed.); IV Scott on Trusts, § 330.8 (3 ed.). [3] The trust involved in the present case includes the following clause: 3.1) Reservations Affecting the Trust. Donor reserves the right to amend this agreement from time to time in any and all respects; to revoke the trust hereby created, in whole or in part; and to change the identity or number (or both) of the trustee or trustees hereunder, by written instrument executed by Donor and delivered to any trustee (or to Donor's wife if no trustee is acting at a particular time) during Donor's lifetime ; provided, however, that the duties and responsibilities of the Trustee shall not be substantially increased by any such amendment without its written consent. (Italics supplied.) The trial court interpreted this clause to mean that the trust could only be revoked by written instrument as set forth above. We agree. Although the clause is not a model of good drafting, appellant concedes that the obvious intent of the section and the requirement of written notice is to protect the trustee. But once this purpose is conceded, any claimed ambiguity in this section of the trust disappears. Maximum protection for the trustee is provided by requiring all major changes to be made by notice to the trustee. [4] This position, taken by the trial court, appears reasonable because the trustee would wish to know of any major change in its duties; revocation or amendment of the trust would constitute as major a change as an increase or decrease in the number of trustees. The sense of the clause, taken as a whole, is that changes which do not substantially increase the duties and responsibilities of the trustee may be made unilaterally by giving written notice, but that the trustee must concur in substantial increases in its duties. Affirmed. TODD, J., took no part in the consideration or decision of this case.