Opinion ID: 1915420
Heading Depth: 1
Heading Rank: 6

Heading: procedural requirements for amendment

Text: Next, the remainder beneficiary argues that even if Phillips intended to amend the trust agreement with the letter, sending it to Hartford did not comply with the procedure for amendment set out in the trust agreement. We have never addressed whether a settlor's failure to strictly follow the procedures for amendment set out in a trust agreement renders an attempted amendment invalid. Courts in other jurisdictions require varying levels of compliance with the amendment procedures set out in a trust agreement. Some courts adhere to a strict compliance standard which requires that [i]f a particular mode is specified, that method must be strictly complied with in order for the modification to be effective. Lourdes College of Sylvania, Ohio v. Bishop, 94 Ohio Misc.2d 51, 57, 703 N.E.2d 362, 366 (1997). See, also, 90 C.J.S. Trusts § 115 (2002). The modern trend, however, backs away from strict compliance. Both the Restatement (Third) of Trusts and the Uniform Trust Code provide that a settlor may amend a trust by substantially complying with a method set out in the terms of the trust. See, Restatement (Third) of Trusts § 63, comment i. (2003); Unif. Trust Code § 602(c)(1), 7C U.L.A. 183 (Cum.Supp. 2000). Accord Williams v. Bank of California, 96 Wash.2d 860, 639 P.2d 1339 (1982). In addition, under both the Restatement and the Uniform Trust Code, if the trust does not provide a method for amendment or the method provided is not expressly made exclusive, the settlor's power to amend the trust can be exercised in any way that provides clear and convincing evidence of the settlor's intention to do so. Restatement, supra, § 63(3) at 443. Accord Unif. Trust Code § 602(c)(2)(B). We note that the Legislature has adopted a modified version of Uniform Trust Code § 602. See Neb.Rev. Stat. § 30-3854 (Supp.2003). However, the operative date of § 30-3854 is January 1, 2005, and thus it does not govern the resolution of this case. Here, it is unnecessary for us to choose between the strict compliance rule and the more modern rule endorsed by the Restatement, supra, and the Uniform Trust Code. The trust agreement provided that Phillips could amend the trust agreement by instrument in writing delivered to the Trustee. The remainder beneficiary argues that the letter to Hartford was not an instrument and was not delivered to the trustee. However, even those jurisdictions that follow the strict compliance rule recognize that provisions requiring the settlor to provide written notice of amendments to the trustee are for the benefit of the trustee. Thus, compliance concerning written notice requirements may be waived by the trustee. See Merchants National Bank of Mobile v. Cowley, 265 Ala. 125, 89 So.2d 616 (1956); St. Louis Union Trust Co. v. Dudley, 162 S.W.2d 290 (Mo.App.1942); 90 C.J.S. Trusts § 115 (2002). Here, Phillips was both the trustee and the settlor. As a result, he was in a position to waive the unnecessary formality of giving himself written notification of his intent to amend the trust agreement. See Argo v. Moncus, 721 So.2d 218 (Ala. Civ.App.1998).