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).
