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Generally speaking, no. A Trustee cannot demand extra requirements that are not specifically stated in the trust instrument.
However, there are some situations where a trustee's requirements may be reasonable if the requirement seeks to confirm that the action/occurrence that allows the distribution has been met. What do I mean by that? Let us use the grades matter as an example. If the trust says that "$25,000 shall be given out once the beneficiary acquires 60 hours of college credit," then then the Trustee may seek verification that the beneficiary has indeed completed 60 hours. This does not necessarily have to be in the form of grades, but some kind of proof that 60 hours of college credit has been acquired. The trustee may believe that a grade printout is the only way to get this confirmation as it would also list the hours, but if the college is able to provide some kind of other statement to the 60 hours being met, then the grades are not required - only that statement.
However, if the trust instrument states that "$25,000 will be paid out only if the beneficiary receives no grades below a B or its equivalent," then the Trustee has a right to demand said grades.
As you can tell, it is a bit subjective. If the beneficiary feels that the Trustee is demanding more than the trust requires but the trustee will not budge, the beneficiary can threaten to go to Court to have the Judge clarify what is required under the trust, after looking at the verbiage an surmising what the benefactor's intent was.
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