October 19th, 2012
There aren’t a lot of cases out there dealing with reformation of trusts. Many jurisdictions allow for reformation to conform with the settlor’s intent. But settlors are usually understood to have meant what they said in the text of the trust instrument. So what qualifies as an event worthy of trust reformation?
In Rockland Trust Company v. Attorney General, the Appeals Court of Massachusetts showed us one circumstance under Massachusetts law that would allow reformation of a trust: avoiding adverse tax consequences, but with a caveat . . . . (more…)