Merger of estates
Sec. 8. (a) If the settlor transfers both the title and the entire
equitable interest in property to the same person as both the sole
trustee and the sole beneficiary, no trust will be deemed to have been
created and the transferee shall treat the property as the transferee's
own.
(b) Except as provided in subsection (c), if the title to the trust
property and the entire beneficial interest becomes united in one (1)
person the trust terminates. If:
(1) a beneficiary is serving as trustee; and
(2) the trust creates an interest in a beneficiary who is not the
trustee, whether the interest is contingent or vested;
the entire beneficial interest shall not be construed to be united in
one (1) person.
(c) The title to the trust property and the entire beneficial interest
shall not become united in a beneficiary whose interest is protected
under a trust with protective provisions, and in that case the court
shall appoint a new trustee to administer the trust for the
beneficiary's benefit.
(Formerly: Acts 1971, P.L.416, SEC.3.) As amended by
P.L.200-1991, SEC.2.
Last modified: May 27, 2006