14-10108
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14-10108. Principal place of administration A. Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if either: 1. A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction. 2. All or part of the administration occurs in the designated jurisdiction. B. A trustee is under a continuing duty to administer the trust at a place appropriate to its purposes, its administration and the interests of the beneficiaries. C. Without precluding the right of the court to order, approve or disapprove a transfer, the trustee, in furtherance of the duty prescribed by subsection B of this section, may transfer the trust's principal place of administration to another state or to a jurisdiction outside of the United States and, subject to the requirements of section 14-10818, may change the applicable law governing the trust. D. The trustee shall notify the qualified beneficiaries of a proposed transfer of a trust's principal place of administration at least sixty days before initiating the transfer. Unless a corporate trustee indicates an intent to change the principal place of business in a notice to qualified beneficiaries, a transfer by the corporate trustee of some of the functions of a trust to another state or states is not a transfer of the trust's principal place of business if the corporate trustee maintains an office in this state. The notice of proposed transfer must include: 1. The name of the jurisdiction to which the principal place of administration is to be transferred. 2. The address and telephone number of the new location at which the trustee can be contacted. 3. An explanation of the reasons for the proposed transfer. 4. The date on which the proposed transfer is anticipated to occur. 5. The date, at least sixty days after the giving of the notice, by which the qualified beneficiary must notify the trustee of an objection to the proposed transfer. E. The authority of a trustee under this section to transfer a trust's principal place of administration terminates if a qualified beneficiary notifies the trustee in writing of a reasonably founded objection to the proposed transfer on or before the date specified in the notice. F. In connection with a transfer of the trust's principal place of administration, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms of the trust or appointed pursuant to section 14-10704. |