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Text: S05234                            Text: S05236
Text: S05200 - S05299                   Text: S Index
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Senate Amendment 5235

Amendment Text

PAG LIN
  1  1    Amend Senate File 2424 as follows:
  1  2    #1.  Page 6, by inserting after line 9 the
  1  3 following:
  1  4    "Sec.    .  NEW SECTION.  633.699A  MODIFICATION OR
  1  5 TERMINATION OF TESTAMENTARY TRUST.
  1  6    1.  On petition by a trustee or beneficiary, and
  1  7 after notice to all interested parties as determined
  1  8 by the court, the court may modify the provisions of a
  1  9 testamentary trust or may terminate a testamentary
  1 10 trust in whole or in part if the continuation of the
  1 11 trust under its terms would defeat or substantially
  1 12 impair the accomplishment of the purposes of the
  1 13 trust, or if the purposes of the trust have been
  1 14 fulfilled, or have become illegal or impossible to
  1 15 fulfill.
  1 16    a.  The court may order the trustee to do acts that
  1 17 are not authorized or are forbidden by the will
  1 18 creating the trust, or may order that the trustee be
  1 19 prohibited from performing acts that are required by
  1 20 the terms of the trust.
  1 21    b.  The existence of a trust provision restraining
  1 22 transfer of the beneficiary's interest does not
  1 23 prevent application of this subsection.
  1 24    c.  If the court orders the termination of the
  1 25 trust, disposition of all property shall be made
  1 26 according to the will provisions that address the
  1 27 disposition of the property in the event the trust is
  1 28 terminated.  However, if the will does not address the
  1 29 disposition of the property in the event the trust is
  1 30 terminated, the court shall determine the disposition
  1 31 of the trust property.
  1 32    2.  On petition by a trustee or beneficiary, and
  1 33 after notice to all interested parties as determined
  1 34 by the court, if the court determines that the fair
  1 35 market value of a testamentary trust has become so low
  1 36 in relation to the cost of administration that
  1 37 continuation of the trust under its existing terms
  1 38 will defeat or substantially impair the accomplishment
  1 39 of its purposes, the court may, in its discretion,
  1 40 order termination of the trust, modification of the
  1 41 trust, or appointment of a new trustee.
  1 42    a.  If the court orders the termination of the
  1 43 trust, disposition of all property shall be made
  1 44 according to the will provisions that address the
  1 45 disposition of the property in the event the trust is
  1 46 terminated.  However, if the will does not address the
  1 47 disposition of the property in the event the trust is
  1 48 terminated, the court shall determine the disposition
  1 49 of the trust property.
  1 50    b.  The existence of a trust provision restraining
  2  1 transfer of the beneficiary's interest does not
  2  2 prevent application of this subsection.
  2  3    3.  In the case of a charitable testamentary trust,
  2  4 the attorney general shall be considered an interested
  2  5 party under this section.  This section shall not be
  2  6 construed to limit intervention by the attorney
  2  7 general according to section 633.303."
  2  8    #2.  By renumbering as necessary.  
  2  9 
  2 10 
  2 11                              
  2 12 ELAINE SZYMONIAK
  2 13 SF 2424.501 76
  2 14 jls/jw
     

Text: S05234                            Text: S05236
Text: S05200 - S05299                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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