Under what condition can a trustee typically terminate a trust?

A trustee typically has the authority to terminate a trust when granted such authority explicitly by the trust instrument. This is crucial because the trust document serves as the foundational legal agreement dictating how the trust operates, the powers of the trustee, and the conditions under which it may be terminated. If the trust instrument includes provisions that allow the trustee to terminate the trust under specified circumstances, then the trustee is empowered to act according to those terms.

In contrast, while a trust may be terminated if it is no longer necessary, this situation must be supported by legal principles that often cater to broader interpretations and may not apply universally. Similarly, while the collective request of all beneficiaries might seem like a valid reason to terminate a trust, not all trusts permit termination solely on their request, especially if the trust's terms or the intentions of the grantor oppose such an action. Finally, the depletion of a trust's assets can lead to practical considerations for termination, but it does not provide an overarching legal basis for termination unless accompanied by additional considerations or if the instrument allows it. Thus, the authority granted by the trust instrument stands out as a definitive condition for termination.