§44-5A-4 Termination of trusts valued at less than fifty thousand dollars; spendthrift and other protective trusts for incompetents and children.
§44-5A-4. Termination of trusts valued at less than fifty thousand dollars; spendthrift and other protective trusts for incompetents and children.
(a) Upon application of a trustee of a trust with assets valued at less than fifty thousand dollars, the principal of which is not distributable until some future time, a circuit court having in rem jurisdiction over the corpus of the trust may order that the trust be terminated upon a finding that the continued existence of the trust is no longer economically beneficial or practical because, relative to the costs of administering the trust or because of an existing economic circumstance that directly threatens the solvency, financial integrity or monetary value of such trust, continuance of the trust pursuant to its existing terms will defeat or substantially impair the accomplishment of its purposes.
(b) Notwithstanding the provisions of subsection (a) of this section to the contrary, the court may not, pursuant to said subsection, order the termination of a spendthrift or other protective trust which exists for the benefit of one or more incompetents or minors in the absence of the court's further finding that there exists or will exist upon the termination of such trust an adequate alternative protective device or provision for the management of the trust assets and protection of the primary beneficiary or beneficiaries for whom the trust was created.
(c) Upon the entry of an order that the trust be terminated pursuant to the provisions of this section, the trustee shall, at least fourteen days prior to the date upon which the trustee proposes to terminate the trust, file with the court such accounting of the activities and assets of the trust as may be directed by the court and serve a copy thereof upon the parties to the action and such other persons that may be affected by the termination of the trust. Upon the court's review of the accounting, the court may enter an order approving the accounting and the terms of the termination of the trust proposed by the trustee or may enter such other order as the court may deem appropriate in the action.