 Presumption = Settlor may revoke, modify, amend, etc.  Settlor can make trust irrevocable by express language.  Tax benefits  Beneficiary protection  Creditor protection

 Revocation Methods  In writing, if trust created in writing. ▪ Sanderson – p. 166 (allowed revocation language to be in a will).  Follow method settlor specified in the trust.

 Generally, no power to modify.  Possible situations:  Settlor granted power in the trust.  Division or combination of trusts on identical terms -- §  Non-judicial cy pres -- §

 Merger -- §  But, no merger of spendthrift trust unless settlor is the beneficiary.

 General U.S. Rule = Allowed as long as no material trust purpose remained unfulfilled (Claflin rule).

 Texas under Frost Nat’l Bank v. Newton (Tex. 1977) = Allowed only if all purposes satisfied.  Texas under § (a)(5) if:  Obtain court approval,  Change not inconsistent with material purpose, and  All beneficiaries agree or are deemed to have agreed.

 Musick v. Reynolds – p. 170, 173  “[I]f a settlor of a trust is alive and all of the beneficiaries of an irrevocable spendthrift trust consent * * *, the settlor and all beneficiaries may consent to a modification or termination of the trust.”  What problem could this holding cause?

 Favored by courts on public policy grounds.  But, courts make certain controversy is genuine.