Text: HF02172 Text: HF02174 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 633.699A MODIFICATION OR 1 2 TERMINATION OF TRUST. 1 3 1. On petition by a trustee or beneficiary, the court may 1 4 modify the provisions of the trust or terminate the trust in 1 5 whole or in part if the continuation of the trust under its 1 6 terms would defeat or substantially impair the accomplishment 1 7 of the purposes of the trust, or if the purposes of the trust 1 8 have been fulfilled, or have become illegal or impossible to 1 9 fulfill. 1 10 a. The court may order the trustee to do acts that are not 1 11 authorized or are forbidden by the trust instrument, or may 1 12 order that the trustee be prohibited from performing acts that 1 13 are required by the terms of the trust. 1 14 b. The existence of a trust provision restraining transfer 1 15 of the beneficiary's interest does not prevent application of 1 16 this subsection. 1 17 2. On petition by a trustee or beneficiary, if the court 1 18 determines that the fair market value of a trust has become so 1 19 low in relation to the cost of administration that 1 20 continuation of the trust under its existing terms will defeat 1 21 or substantially impair the accomplishment of its purposes, 1 22 the court may, in its discretion, order termination of the 1 23 trust, modification of the trust, or appointment of a new 1 24 trustee. 1 25 a. Notwithstanding subsection 2, if the trust principal 1 26 does not exceed twenty thousand dollars in value, the trustee 1 27 has the power to terminate the trust without petitioning the 1 28 court. However, the trustee may seek approval of the court, 1 29 or may seek instruction on issues related to terminating the 1 30 trust. 1 31 b. The existence of a trust provision restraining transfer 1 32 of the beneficiary's interest does not prevent application of 1 33 this subsection. 1 34 EXPLANATION 1 35 This bill adds a new section to the probate code pertaining 2 1 to modification or termination of trusts. The section 2 2 proposes that the court may modify or terminate a trust when 2 3 the enforcement of the terms of a trust is no longer 2 4 consistent with the purposes of the trust, or it is impossible 2 5 to continue the trust. A subsection of the proposed provision 2 6 expressly permits the court to modify or terminate a trust 2 7 that has become uneconomical to administer, and permits a 2 8 trustee to make this determination when the principal of the 2 9 trust is less than $20,000. 2 10 LSB 3465YH 76 2 11 jls/jw/5
Text: HF02172 Text: HF02174 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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