456.4B-411. Modification or termination of noncharitable irrevocable trust by consent--applicability.
Modification or termination of noncharitable irrevocable trust byconsent--applicability.
456.4B-411. 1. When all of the adult beneficiaries having thecapacity to contract consent, the court may, upon finding that the interestof any nonconsenting beneficiary will be adequately protected, modify theterms of a noncharitable irrevocable trust so as to reduce or eliminate theinterests of some beneficiaries and increase those of others, change thetimes or amounts of payments and distributions to beneficiaries, or providefor termination of the trust at a time earlier or later than that specifiedby its terms. The court may at any time upon its own motion appoint arepresentative pursuant to section 456.3-305 to represent a nonconsentingbeneficiary. The court shall appoint such a representative upon the motionof any party, unless the court determines such an appointment is notappropriate under the circumstances.
2. Upon termination of a trust under subsection 1 of this section,the trustee shall distribute the trust property as directed by the court.
3. If a trust cannot be terminated or modified under subsection 1 ofthis section because not all adult beneficiaries having capacity tocontract consent or the terms of the trust prevent such modification ortermination, the modification or termination may be approved by the courtif the court is satisfied that the interests of a beneficiary, other thanthe settlor, who does not consent will be adequately protected,modification or termination will benefit a living settlor who is also abeneficiary, and:
(1) in the case of a termination, the party seeking terminationestablishes that continuance of the trust is not necessary to achieve anymaterial purpose of the trust; or
(2) in the case of a modification, the party seeking modificationestablishes that the modification is not inconsistent with a materialpurpose of the trust, and the modification is not specifically prohibitedby the terms of the trust.
4. This section shall apply to trusts created under trust instrumentsthat become irrevocable on or after January 1, 2005. The provisions ofsection 456.590 shall apply to all trusts that were created under trustinstruments that become irrevocable prior to January 1, 2005.
(L. 2004 H.B. 1511 § 456.4-411B, A.L. 2006 S.B. 892 § 456.4-411B)