§2026. Termination or modification to prevent impairment of trust purposes; termination of small trust
A. The proper court may order the termination or modification of a trust, in whole or in part, if the continuance of the trust unchanged would defeat or substantially impair the purposes of the trust. In the event of termination of a trust under this Subsection, the proper court shall provide for the distribution of the trust property, including principal and undistributed income, to the beneficiaries in a manner that conforms as nearly as possible to the intention of the settlor.
B. Except as otherwise provided by the terms of the trust, a trustee may terminate a trust after obtaining the consent of all beneficiaries or their legal representatives if the market value of a trust is less than one hundred thousand dollars. A natural tutor, without need for a formal tutorship proceeding and concurrence of an undertutor, may consent to the termination of a trust on behalf of a minor.
C. In the event of the termination or modification of a trust under this Section, the trustee shall not be subject to liability for such termination or modification.
Acts 1991, No. 665, §1; Acts 1997, No. 252, §1; Acts 2001, No. 594, §2; Acts 2015, No. 219, §1.
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