Title 14, Trusts, Estates and Protective Proceedings

A. The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this state. B. The court shall look to the restatement (second) of trusts for interpretation of the common law and not to subsequent r…

A. The meaning and effect of the terms of a trust are determined by the law of the jurisdiction designated in the terms of the trust instrument. B. In the absence of a controlling designation in the terms of the trust, the laws of the jurisdiction where the trust was executed det…

A. Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if either: 1. A trustee's principal place of business is located in or a trust…

A. Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sendin…

A. A charitable organization that is expressly and irrevocably designated to receive distributions under the terms of a charitable trust or a person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in section 14-10408 or …

A. Except as otherwise provided in subsection B of this section, and except for modification or termination of a trust as otherwise permitted pursuant to the trust instrument, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter …

The rules of construction that apply in this state to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.

A provision in a trust instrument that purports to penalize an interested person for contesting the trust instrument or instituting other proceedings or actions relating to the trust property is unenforceable if probable cause exists for the contest, proceedings or actions.

A. The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. B. A trust is not subject to continuing judicial supervision unless ordered by the court. C. A judicial proceeding involving a trus…

A. By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, or until otherwise declared by the trustee if a proceeding regarding a matter involving the trust is not pending…

A. The superior court has exclusive jurisdiction of proceedings in this state brought by a trustee or beneficiary concerning the administration of a trust. B. The superior court has concurrent jurisdiction with other courts of this state of other proceedings involving a trust.

A. Except as otherwise provided in subsection B, venue for a judicial proceeding involving a trust is in the county of this state in which the trust's principal place of administration is or will be located and, if the trust is created by will and the estate is not yet closed, in…

A trust instrument may provide mandatory, exclusive and reasonable procedures to resolve issues between the trustee and interested persons or among interested persons with regard to the administration or distribution of the trust.

Sections 14-1404, 14-1405, 14-1406, 14-1407 and 14-1408 apply to trusts governed by this chapter.

A. If the court determines that a beneficiary's interest is not represented under this chapter or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent and otherwise represent, bind and act on behal…

A trust may be created by: 1. Transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect on the settlor's death. 2. Declaration by the owner of property that the owner holds identifiable property as trustee. 3. Ex…

A. Except as provided in section 14-5409, a trust is created only if all of the following are true: 1. The settlor has capacity to create a trust. 2. The settlor indicates an intention to create the trust. 3. The trust has a definite beneficiary or is: (a) A charitable trust. (b)…

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed or the law of the jurisdiction in which, at the time of creation, either: 1. The settlor was domiciled, had a place of abode or was …

A trust may be created only to the extent that its purposes are lawful, not contrary to public policy and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries.

A. A charitable trust may be created for the relief of poverty, the advancement of education, religion or science, the promotion of health, governmental or municipal purposes or other purposes, the achievement of which is beneficial to the community, or for the support of one or …

A trust is void, in whole or in part, to the extent its creation was induced by fraud, duress or undue influence.

Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust shall be established only by clear and convincing evidence and the terms of the oral trust shall be established by a preponderance of th…

A. A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates on the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, on the death of th…

Except as otherwise provided in section 14-10408 or by another statute, the following rules apply: 1. A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by…

A. In addition to the methods of termination prescribed by sections 14-10411, 14-10412, 14-10413 and 14-10414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved or the purposes of the trust have …

A. A noncharitable irrevocable trust may be terminated on consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified on consent of all of…

A. The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be m…

A. Except as otherwise provided in subsection B, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve or wasteful: 1. The trust does not fail in whole or in part. 2. The trust property does not revert to the settlor or the settlor's successors…

A. After notice to the qualified beneficiaries, the trustee of a trust that consists of trust property having a total value of less than one hundred thousand dollars or that is uneconomic to administer may terminate the trust if the trustee concludes that the value of the trust p…

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in express…

To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.

Unless the trust instrument provides that notice is not required, after notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary …

The trustee may modify a trust agreement to change the name of the trustee or beneficiary if the trustee or beneficiary's name has been legally changed.

A. The court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary or by other means. The court may limit the award to such relief as is appropriate und…

A. A spendthrift provision is valid only if it restrains either voluntary or involuntary transfer of a beneficiary's interest. B. A term of a trust providing that the interest of a beneficiary is held subject to a spendthrift trust, or words of similar import, is sufficient to re…

A. Even if a trust contains a spendthrift provision, a beneficiary's child who has a judgment or court order against the beneficiary for support or maintenance, or a judgment creditor who has provided services relating to the protection of a beneficiary's interest in the trust, m…

A. Except as provided in subsection B of this section, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if either: 1. The discretion is expressed in the form of a s…

A. Whether or not the terms of a trust contain a spendthrift provision, the following rules apply: 1. During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors. If a trust has more than one settlor or contributor, the am…

A. Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal if the trustee has not made the distribution to the beneficiary within a reasonable period after the mandated distribution…

Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.

A. Unless the terms of a trust expressly provide that the trust is irrevocable, a settlor may revoke or amend the trust subject to any limitations prescribed in the terms of the trust. B. If a revocable trust is created or funded by more than one settlor: 1. To the extent the tru…

A. While a trust is revocable by the settlor, the rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. B. During the period a power of withdrawal may be exercised, the holder of the power has the rights of …

A. A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of: 1. One year after the settlor's death. 2. Four months after the trustee sent the person a copy of the trust instrument and a notice i…

A. Except as otherwise provided in subsection C, a person designated as trustee accepts the trusteeship either: 1. By substantially complying with a method of acceptance provided in the terms of the trust. 2. If the terms of the trust do not provide a method or the method provide…

A. A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. B. The court may s…