Irrevocable Trust Created under Power of Attorney a Legal Nullity

Agent under durable power of attorney established irrevocable trust, which denied the right of the principal to the trust’s principal.  Principal objected to the trust, and the trust was terminated.  Following principal’s death, former agent petitioned to have the trust restored, and the court held that the power of attorney did not explicitly give the power to create an irrevocable trust and that PEF 5603(b) specifically forbids an agent from creating an irrevocable trust, making the trust a legal nullity.  In the alternative, the court held that the trust was properly terminated under PEF 5603(b)(2) and that the petitioner is barred by the doctrine of accord, satisfaction or release.  Edler Estate, 4 Fid. Rep. 3d 113 (O.C. Lycoming 2014) (Opinion by Lovecchio, J.)

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