(a) (1) A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust.
(2) A settlor's power to consent to a trust's modification or termination may be exercised by:
(A) an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust;
(B) the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or
(C) the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.
(b) A noncharitable irrevocable trust may be:
(1) terminated upon consent of all of the beneficiaries if a court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust; or
(2) modified upon consent of all of the beneficiaries if a court concludes that modification is not inconsistent with a material purpose of the trust.
(c) A spendthrift provision in the terms of the trust is presumed to constitute a material purpose of the trust.
(d) Upon termination of a trust under subsection (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.
(e) If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b), the modification or termination may be approved by a court if the court is satisfied that:
(1) if all of the beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the interests of a beneficiary who does not consent will be adequately protected.
Section: Previous 28-73-404 28-73-405 28-73-406 28-73-407 28-73-408 28-73-409 28-73-410 28-73-411 28-73-412 28-73-413 28-73-414 28-73-415 28-73-416 28-73-417 NextLast modified: November 15, 2016