Section 700.7411 - Modification or termination of noncharitable trust; consent; "settlor's representative" defined.
ESTATES AND PROTECTED INDIVIDUALS CODE (EXCERPT)
Act 386 of 1998
700.7411 Modification or termination of noncharitable trust; consent; "settlor's representative" defined.
Sec. 7411.
(1) Subject to subsection (2), a noncharitable irrevocable trust may be modified or terminated in any of the following ways:
(a) By the court upon the consent of the trustee and the qualified trust beneficiaries, if the court concludes that the modification or termination of the trust is consistent with the material purposes of the trust or that continuance of the trust is not necessary to achieve any material purpose of the trust.
(b) Upon the consent of the qualified trust beneficiaries and a trust protector who is given the power under the terms of the trust to grant, veto, or withhold approval of termination or modification of the trust.
(c) By a trustee or trust protector to whom a power to direct the termination or modification of the trust has been given by the terms of a trust.
(2) Subsection (1) does not apply to irrevocable trusts created before or to revocable trusts that become irrevocable before the effective date of the amendatory act that added this section.
(3) Notice of any proceeding to terminate or modify a trust shall be given to the settlor, or the settlor's representative if the petitioner has a reasonable basis to believe the settlor is an incapacitated individual, the trust protector, if any, the trustee, and any other person named in the terms of the trust to receive notice of such a proceeding.
(4) Upon termination of a trust under subsection (1), the trustee shall distribute the trust property as agreed by the qualified trust beneficiaries.
(5) If the trustee fails or refuses to consent, or fewer than all of the qualified trust beneficiaries consent, to a proposed modification or termination of the trust under subsection (1), the modification or termination may be approved by the court if the court is satisfied that both of the following apply:
(a) If the trustee and all of the qualified trust beneficiaries had consented, the trust could have been modified or terminated under this section.
(b) The interests of a qualified trust beneficiary who does not consent will be adequately protected.
(6) As used in this section, "settlor's representative" means the settlor's agent under a durable power of attorney, if the attorney in fact is known to the petitioner, or, if an agent has not been appointed, the settlor's conservator, plenary guardian, or partial guardian.
History: Add. 2009, Act 46, Eff. Apr. 1, 2010
Popular Name: EPIC