For grantor trusts established in Maine prior to July 1, 2005, follow the same rules
as set out for Connecticut, Rhode Island and Vermont in SI BOS01120.200C.1. to determine whether a trust is irrevocable. A trust established prior to July
1, 2005, is generally considered irrevocable if the document states that it is irrevocable
and if the trust property would be left to a residual beneficiary upon the principal
beneficiary's death or the occurrence of some specific event.
For grantor trusts executed on or after July 1, 2005, a trust is irrevocable if stated
to be irrevocable, regardless of whether a residual beneficiary is named.
The Maine Uniform Trust Code also provides for the termination of an irrevocable trust
created on or after July 1, 2005, under certain circumstances. If the settlor and
all the residual beneficiaries of the trust consent to a termination, a court can
terminate the trust if doing so would be in the beneficiaries' best interest. In addition,
in the case of an irrevocable grantor trust with no residual beneficiary, the grantor/sole
beneficiary could also request that a court terminate the trust. However, despite
the ability to terminate an irrevocable trust, such a trust will not be considered
a countable resource until the court orders termination.