Who is typically allowed to initiate a trust modification?

Gain the edge on the CTFA Exam. Dive into our quizzes featuring multiple choice questions with detailed explanations. Elevate your understanding for the Certified Trust and Fiduciary Advisor certification effortlessly.

The initiation of a trust modification is typically allowed for the trustor, who is the individual that created the trust, and in some cases, beneficiaries may also have a role in this process. The trustor has the primary authority to modify the terms of the trust as they see fit, particularly when the trust is revocable. This capability is fundamental as it allows the trustor to adapt the trust to changing circumstances or intentions over time.

Beneficiaries can also be involved in modifications, particularly in irrevocable trusts, where consent from all beneficiaries or a certain percentage of them may be required. This involvement ensures that the interests of those who benefit from the trust are considered, especially when the modifications could impact their rights or distributions.

The other options provided involve roles that do not typically initiate trust modifications. For example, while trust lawyers can provide advice and handle the legal aspects of modifications, they cannot initiate changes without the trustor's or beneficiaries' consent. Judges in trust courts can modify trusts under specific legal circumstances, typically based on petitions or requests brought before them, but they do not initiate modifications on their own accord. Thus, the primary initiators of trust modification are, indeed, the trustor and sometimes the beneficiaries.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy