DISTRIBUTIVE DEVIATION

distributive  deviation.A  trustee’s  authorized  or  unauthorized  departure  from  the  express

distributional terms of a trust. • A trustee must apply to the court for authority to deviate from the

terms  of  a  trust.  In  American  law,  courts  rarely  authorize  deviation  unless  all  the  beneficiaries

consent and there is no material purpose of the settlor yet to be served. Some state statutes provide

that deviation is permitted if the court finds that deviation would effectuate the settlor’s intention,

though  the  modification  is  not  expressly  authorized  by  the  trust’s  provisions.  The  Pulitzer  trust

illustrates the possibility that extraordinary circumstances not anticipated by the settlor may justify

deviation,  even  despite  an  express  prohibition  within  the  trust.  Joseph  Pulitzer  set  up  a

testamentary  trust with  shares of World  newspaper  stock;  his will  directed  that  the  sale of  these

shares  was  not  authorized  under  any  circumstances.  Nonetheless,  the  court  later  approved  the

stock sale when given evidence that because of hemorrhaging losses, the trust’s continuation was

jeopardized. In re Pulitzer’s Estate, 249 N.Y.S. 87 (Sur. Ct. 1931). [Blacks Law 8th]