As a small business owner, you may come across a trust agreement or instrument containing the term “UDT” or more frequently “U/D/T”. A trust is a legal agreement in which a person controls assets for the benefit of another person or for themselves, and some trust agreements use the abbreviation UDT. This abbreviation has a specific legal meaning and indicates that the agreement creates a certain type of personal trust. During the de novo verification, we find that the petentine has established all the necessary elements of its claim by clear and convincing evidence. First, it is indisputable that tax evasion by the taxpayer was the petitioner`s sole objective in creating the trust. Second, the trust was not used to save tax and thus to achieve its purpose. Third, pethene rightly relied on the advice of its lawyer to say that irrevocable trust would serve that purpose. That is, she did not make gross negligence when she made the mistake. Fourth, after learning of her mistake, the petentine immediately sought the assistance of a lawyer and tried to lift the trust with the agreement of the beneficiaries. When this attempt failed, she filed a complaint for resignation. It follows that the court of justice did not err in rendering a judgment which annulled the confidence. After explaining why the cases on which beneficiaries rely do not assist them in this area, we must determine whether, in accordance with the principles of fairness8 in force, an irrevocable trust can be lifted at the request of the Trustor for error.
Although no case in Oregon directly achieves the goal, we conclude that such an authority exists. The Supreme Court has authorized the cancellation of a trust whose execution was caused by fraud or unlawful influence. In Egr v. Egr et al., 170 Or. 1, 131 p.2d 198 (1942), the Tribunal found that a trust was induced by undue influence and was therefore invalid. Id. at 32-33, 131 p.2d 198. There are sufficient reasons to conclude that a resignation is also possible to correct a countervailable error. Errors, such as fraud, are a legitimate reason for cancelling a contract or other instrument….