Essay playbook
The Family Trust Dispute
Work through The Family Trust Dispute as a public essay playbook with a fresh Florida-focused fact pattern, scored issues, and a model answer.
Fact pattern
In 2020, Grandmother created a trust with First Bank as trustee. The trust instrument stated: "Income to my son David for life, remainder to David's children." The trust was silent on revocability. The trust included a spendthrift clause. In 2022, Grandmother told David she wanted to change the remainder beneficiaries to charity. She never executed any amendment. David has significant gambling debts. His creditors seek to reach his trust interest. David also owes $50,000 in child support to his ex-wife for their daughter Emma. First Bank invested 80% of trust assets in a single tech stock that its president personally recommended. The stock lost 60% of its value. David now wants to terminate the trust and receive his share outright. His children (ages 25 and 30) agree. Grandmother died in 2024.
Scored issues to spot
Trust silent on revocability. FL presumes REVOCABLE. Grandmother could have amended.
Subject: Trusts | Points: 15
Grandmother's oral statement to change beneficiaries is not effective without written amendment.
Subject: Trusts | Points: 10
Spendthrift clause protects David's interest from gambling creditors.
Subject: Trusts | Points: 15
FL exception: Child support and alimony CAN pierce spendthrift protection.
Subject: Trusts | Points: 15
Concentrating 80% in one stock violates duty to diversify. Self-dealing concern.
Subject: Trusts | Points: 15
All beneficiaries agree, but material purpose (successive enjoyment) may not be frustrated.
Subject: Trusts | Points: 10
Model answer
**1. TRUST REVOCABILITY (FL-Specific)** The trust was silent on revocability. Under F.S. § 736.0602, Florida PRESUMES trusts are REVOCABLE unless expressly stated irrevocable. This is opposite from common law.
**2. ORAL MODIFICATION** Grandmother's oral statement to David about changing beneficiaries is NOT effective. Trust modifications generally require the same formalities as creation, typically a written instrument.
**3. SPENDTHRIFT PROTECTION** The spendthrift clause protects David's trust interest from his gambling creditors. Under F.S. § 736.0502, creditors cannot reach the beneficiary's interest BEFORE distribution.
**4. CHILD SUPPORT EXCEPTION (FL-Specific)** However, Emma's mother CAN reach David's trust interest for child support. Under F.S. § 736.0503, child support and alimony are EXCEPTIONS that pierce spendthrift protection.
**5. TRUSTEE BREACH** First Bank breached its fiduciary duties: - Duty to diversify: 80% in one stock violates prudent investor rule - Potential self-dealing: Bank president's personal recommendation raises loyalty concerns - Bank is liable for resulting losses
**6. TERMINATION** While all current beneficiaries (David and adult children) consent, the trust has a material purpose—providing successive beneficial enjoyment. Courts may refuse termination if it would frustrate this purpose. However, since Grandmother died and all beneficiaries are adults who consent, termination may be allowed.