(1) If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the court shall approve the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's consent to a trust's modification or termination may be given by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust, by the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized, or by the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.
(2) Other than a trust established by court order under Title XIX of the federal "Social Security Act", 42 U.S.C. sec. 1396p (d)(4), a noncharitable irrevocable trust may:
Be terminated upon consent of all of the beneficiaries if the court concludes thatcontinuance of the trust is not necessary to achieve any material purpose of the trust; or
Be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
A spendthrift provision in the terms of a trust is not presumed to constitute a materialpurpose of the trust.
Upon termination of a trust pursuant to subsection (1) or (2) of this section, thetrustee shall distribute the trust property as agreed by the beneficiaries.
If not all of the beneficiaries consent to a proposed modification or termination of atrust pursuant to subsection (1) or (2) of this section, the modification or termination may be approved by the court if the court is satisfied that:
If all of the beneficiaries had consented, the trust could have been modified or terminated pursuant to this section; and
The interests of a beneficiary who does not consent will be adequately protected.
Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1163, § 1, effective January 1, 2019.