Subject to section 15-5-409.5 and except as provided pursuant to sections 38-30-110 to 38-30-112, if a trust is for a specific, lawful, noncharitable purpose or for lawful, noncharitable purposes to be selected by the trustee, and there is no definite or definitely ascertainable beneficiary designated, the trust may be performed by the trustee for twenty-one years but no longer, regardless of whether the terms of trust contemplate a longer duration.
Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1162, � 1, effective January 1, 2019.
15-5-409.5. Additional provisions applicable to noncharitable trusts without ascertainable beneficiary and trusts for care of animal. (1) In addition to the provisions of sections 15-5-408 and 15-5-409, a trust covered by either of those sections is subject to the following provisions:
(a) Except as expressly provided otherwise in the trust instrument, no portion of the principal or income may be converted to the use of the trustee, other than reasonable trustee fees and expenses of administration, or to any use other than for the trust's purposes or for the benefit of a covered animal or animals;
(b) Upon termination, the trustee shall transfer the unexpended trust property in the following order:
(I) As directed in the trust instrument;
(II) If the trust was created in a nonresiduary clause in the settlor's will or in a codicil to the settlor's will, under the residuary clause in the settlor's will; and
(III) If no taker is produced by the application of subsections (1)(b)(I) and (1)(b)(II) of this section, to the settlor's heirs pursuant to part 5 of article 11 of this title 15;
(c) (Reserved)
(d) The intended use of the principal or income can be enforced by an individual designated for that purpose in the trust instrument, by the person having custody of an animal for which care is provided by the trust instrument, by a remainder beneficiary, or, if none, by an individual appointed by a court upon application to it by an individual;
(e) All trusts created pursuant to this section may be registered, and all trustees are subject to the laws of this state applying to trusts and trustees; and
(f) (Reserved)
(g) (I) If no trustee is designated or no designated trustee is willing or able to serve, a court shall name a trustee. A court may order the transfer of the property to another trustee if required to ensure that the intended use is carried out and if:
(A) No successor trustee is designated in the trust instrument; or
(B) No designated successor trustee agrees to serve or is able to serve.
(II) A court may also make such other orders and determinations as shall be advisable to carry out the intent of the settlor and the purposes of sections 15-5-408 and 15-5-409.
Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1162, � 1, effective January 1, 2019.
15-5-410. Modification or termination of trust - proceedings for approval or disapproval. (1) In addition to the methods of termination prescribed by sections 15-5-411 to 15-5-414, a trust terminates to the extent that:
(a) The trust is revoked or expires pursuant to its terms;
(b) No purpose of the trust remains to be achieved; or
(c) The purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(2) A proceeding to approve or disapprove a proposed modification or termination pursuant to sections 15-5-411 to 15-5-416, or trust combination or division pursuant to section 15-5-417, may be commenced by a trustee or a beneficiary.
Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1163, � 1, effective January 1, 2019.
15-5-411. Modification or termination of noncharitable irrevocable trust by consent. (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:
(a) Be terminated upon 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; or
(b) 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.
(3) A spendthrift provision in the terms of a trust is not presumed to constitute a material purpose of the trust.
(4) Upon termination of a trust pursuant to subsection (1) or (2) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.
(5) If not all of the beneficiaries consent to a proposed modification or termination of a trust 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:
(a) If all of the beneficiaries had consented, the trust could have been modified or terminated pursuant to this section; and
(b) 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.
15-5-412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively. (1) 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 made in accordance with the settlor's probable intention.
(2) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(3) Upon termination of a trust pursuant to this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1164, � 1, effective January 1, 2019.