Termination of a trust by the settlor with consent requires the consent of:

• A. All beneficiaries
• B. The guardian of the minor
• C. The majority of beneficiaries
• D. The fetus

Answer: (A)

To terminate a trust by the settlor with consent, everyone who has a beneficial interest in the trust must agree. The idea is that terminating the trust ends or alters each beneficiary’s rights, so no one with a legitimate interest can be left out or overruled by the settlor’s choice alone. If a beneficiary is a minor, the minor’s guardian can consent on the minor’s behalf, so consent can be provided through the guardian for that beneficiary. A fetus isn’t yet a beneficiary, so it cannot give consent, and termination isn’t based on a separate prenatal consent. A majority agreement isn’t enough because the law requires unanimity to protect each beneficiary’s interest.