58a-411. Modification or termination of noncharitable irrevocable trust by consent.
58a-411
58a-411. Modification or termination ofnoncharitable irrevocable trust by consent.(a) A noncharitable irrevocable trust may be modified or terminated uponconsent of the settlor and all qualified beneficiaries, even if themodification or termination is inconsistent with a material purpose of thetrust. A settlor's power to consent to a trust's modification or terminationmay be exercised by an attorney in fact under a power of attorney only to theextent expressly authorized by the power of attorney or the terms of the trust;by the settlor's conservator with the approval of the court supervising theconservatorship if an agent is not so authorized; or by the settlor'sguardian with the approval of the court supervising the guardianship if anagent is not so authorized and a conservator has not been appointed.This subsection does not apply to irrevocable trusts created before, or torevocable trusts that became irrevocable before, January 1, 2003.
(b) A noncharitable irrevocable trust may be terminated upon consent of allof the qualified beneficiaries if the court concludes that continuance of thetrust is not necessary to achieve any material purpose of the trust. Anoncharitable irrevocable trust may be modified upon consent of all of thequalified beneficiaries if the court concludes that modification is notinconsistent with a material purpose of the trust.
(c) A spendthrift provision in the terms of the trust is presumed toconstitute a material purpose of the trust.
(d) Upon termination of a trust under subsection (a) or (b), the trusteeshall distribute the trust property as agreed by the qualified beneficiaries.
(e) If not all of the qualified beneficiaries consent to a proposedmodification or termination of the trust under subsection (a) or (b), themodification or termination may be approved by the court if the court issatisfied that:
(1) If all of the qualified beneficiaries had consented, the trust could havebeen modified or terminated under this section; and
(2) the interests of a qualified beneficiary who does not consent willbe adequately protected.
History: L. 2002, ch. 133, § 32;L. 2004, ch. 158, § 6;L. 2006, ch. 23, § 6; July 1.