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Text: HSB00756                          Text: HSB00758
Text: HSB00700 - HSB00799               Text: HSB Index
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House Study Bill 757

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  633.699A  MODIFICATION OR
  1  2 TERMINATION OF UNECONOMICAL TESTAMENTARY TRUST.
  1  3    1.  On petition by a trustee or beneficiary, and after
  1  4 notice to all interested parties as determined by the court,
  1  5 if the court determines that the fair market value of a
  1  6 testamentary trust has become so low in relation to the cost
  1  7 of administration that continuation of the trust under its
  1  8 existing terms will defeat or substantially impair the
  1  9 accomplishment of its purposes, the court may, in its
  1 10 discretion, order termination of the trust, modification of
  1 11 the trust, or appointment of a new trustee.
  1 12    a.  If the court orders the termination of the trust,
  1 13 disposition of all property shall be made according to the
  1 14 will provisions that address the disposition of the property
  1 15 in the event the trust is terminated.  However, if the will
  1 16 does not address the disposition of the property in the event
  1 17 the trust is terminated, the court shall determine the
  1 18 disposition of the trust property, according to what the court
  1 19 determines would be most consistent with the trustor's
  1 20 original intent.
  1 21    b.  The existence of a trust provision restraining transfer
  1 22 of the beneficiary's interest does not prevent application of
  1 23 this subsection.
  1 24    2.  In the case of a charitable testamentary trust, the
  1 25 attorney general shall be considered an interested party under
  1 26 this section.  This section shall not be construed to limit
  1 27 intervention by the attorney general according to section
  1 28 633.303.  
  1 29                           EXPLANATION
  1 30    This bill adds a new section to the probate code, that
  1 31 permits a court to modify or terminate a testamentary trust
  1 32 when it has become uneconomical to administer.  
  1 33 LSB 4454HC 76
  1 34 jls/cf/24
     

Text: HSB00756                          Text: HSB00758
Text: HSB00700 - HSB00799               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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