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Simple English definitions for legal terms
Claflin-trust principle
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A quick definition of Claflin-trust principle:
The Claflin-trust principle is a rule that says a trust cannot be ended by the people who benefit from it if ending it would go against what the person who made the trust wanted. This means that even if everyone who benefits from the trust wants it to end, it might not be allowed to end if the person who made the trust had a good reason for making it. This rule is often called "deadhand control" because it means that the wishes of the person who made the trust are more important than the wishes of the people who benefit from it. Some types of trusts that fall under this rule include trusts where the person in charge can decide how to give out the money, trusts that are meant to support someone, and trusts where the person who benefits gets money until they reach a certain age.
A more thorough explanation:
The Claflin-trust principle is a legal doctrine that states that a trust cannot be terminated by the beneficiaries if doing so would go against the settlor's original intentions for creating the trust. This means that even if all the beneficiaries want to end the trust, they cannot do so if it would defeat one of the settlor's material purposes in establishing the trust.
The Claflin rule comes from a court case called Claflin v. Claflin, which was decided in Massachusetts in 1889. This case is often cited as an example of "deadhand control," which means that the wishes of the settlor, who is now deceased, are more important than the needs and desires of the living beneficiaries.
Examples of trusts that fall under the Claflin category include:
- Spendthrift trusts
- Support trusts
- Trusts in which the trustee has discretion to make distributions
- Trusts in which the beneficiary is entitled to income until a certain age, at which point they will receive the principal
For instance, if a wealthy parent sets up a trust for their child's education and specifies that the trust can only be used for tuition and related expenses, the child cannot terminate the trust if they want to use the money for something else, like buying a car. Even if all the beneficiaries agree to end the trust, they cannot do so if it would go against the settlor's original intentions.