A Spendthrift Trust terminates: which description is correct according to the material?

A Spendthrift Trust terminates: which description is correct according to the material?

• A. Auto termination when purpose fulfilled
• B. Termination by court order only
• C. The trust terminates only with the consent of all beneficiaries
• D. Auto termination occurs when purpose is fulfilled, illegal, impracticable, or impossible; or revocation by will or divorce under certain circumstances

Answer: (D)

Spendthrift trusts terminate when their purpose is fulfilled or when continuing the trust becomes illegal, impracticable, or impossible. They can also end if the creator revokes the trust by will or if a divorce changes the trust arrangement under certain circumstances. This combination of automatic termination triggers and special revocation scenarios best fits how spendthrift trusts end, making it the correct description. The other options are incomplete or incorrect because they omit one or more of these termination paths—for example, auto-termination only on fulfillment ignores other triggers, and claiming termination only by court order or only by unanimous beneficiary consent ignores the usual automatic and revocation-based possibilities.

Spendthrift trusts terminate when their purpose is fulfilled or when continuing the trust becomes illegal, impracticable, or impossible. They can also end if the creator revokes the trust by will or if a divorce changes the trust arrangement under certain circumstances. This combination of automatic termination triggers and special revocation scenarios best fits how spendthrift trusts end, making it the correct description. The other options are incomplete or incorrect because they omit one or more of these termination paths—for example, auto-termination only on fulfillment ignores other triggers, and claiming termination only by court order or only by unanimous beneficiary consent ignores the usual automatic and revocation-based possibilities.