Title 30, Guardians And Trustees

PART XI. MISCELLANEOUS PROVISIONS [§554D-1101] Uniformity of application and construction. In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. [L 2021, c …

[§554D-1102] Electronic records and signatures. The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures and of contracts formed or performed with the use of those records or signatures conform to the re…

[§554D-1103] Severability clause. If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or applicat…

[§554D-1104] Application to existing relationships. (a) Except as otherwise provided in this chapter, on January 1, 2022: (b) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before Januar…

[§554D-111] Nonjudicial settlement agreements. (a) Except as otherwise provided in subsection (b), interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. (b) A nonjudicial settlement agreement is valid only to th…

[§554D-112] Rules of construction. 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. [L 2021, c 32, p…

[§554D-113] Insurable interest of trustee. (a) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the own…

PART II. JUDICIAL PROCEEDINGS [§554D-201] Role of court in administration of trust. (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 judic…

[§554D-202] Jurisdiction over trustee and beneficiary. (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, the trustee submits personally to the jurisdiction of th…

[§554D-203] Subject matter jurisdiction. (a) The court has exclusive jurisdiction of proceedings in this State concerning the administration of a trust. (b) The court has concurrent jurisdiction with other courts of this State of actions and proceedings involving a trust, includi…

[§554D-204] Venue. (a) Except as otherwise provided in subsection (b), venue for a judicial proceeding involving a trust is in the judicial circuit 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 …

PART III. REPRESENTATION [§554D-301] Representation; basic effect. (a) Notice to a person who may represent and bind another person under this part has the same effect as if notice were given directly to the other person. (b) The consent of a person who may represent and bind ano…

[§554D-302] Representation by holder of power of appointment. To the extent there is no material conflict of interest between the holder of a power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind per…

[§554D-303] Representation by fiduciaries and parents. To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute:

[§554D-304] Representation by person having substantially identical interest. Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another…

[§554D-305] Appointment of guardian ad litem. (a) If the court determines that an interest is not represented under this part, or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem to receive notice, give consent, and otherw…

PART IV. CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST [§554D-401] Methods of creating trust. A trust may be created by:

[§554D-402] Requirements for creation. (a) A trust is created only if: (b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities. (c) A power in a trustee, or in another person under the terms of …

[§554D-403] Trusts created in other jurisdictions. 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: Unless otherwi…

[§554D-404] Trust purposes. A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms shall be for the benefit of its beneficiaries, subject to the provisions of the trust. [L 2021, c 32, pt of…

[§554D-405] Charitable purposes; enforcement. (a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the co…

[§554D-406] Creation of trust induced by fraud, duress, or undue influence. A trust is void to the extent its creation was induced by fraud, duress, or undue influence. [L 2021, c 32, pt of §2]

[§554D-407] Evidence of oral trust. (a) Except as required by law other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms, including any amendments thereto, may be established only by clear and convincing evide…

[§554D-408] Trust for care of animal. (a) A trust for the care of one or more designated domestic or pet animals shall be valid. The trust terminates when no living animal is covered by the trust. A governing instrument shall be liberally construed to bring the transfer within th…

[§554D-409] Noncharitable trust without ascertainable beneficiary. Except as otherwise provided in section 554D-408 or by other law, the following rules apply:

[§554D-410] Modification or termination of trust; proceedings for approval or disapproval. (a) In addition to the methods of termination prescribed by sections 554D-411 through 554D-414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no pu…

[§554D-411] Modification or termination of noncharitable irrevocable trust by consent. (a) A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material pu…

[§554D-412] Modification or termination because of unanticipated circumstances or inability to administer trust effectively. (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 sett…

[§554D-413] Cy pres. (a) Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (b) Subsection (a) shall not apply if the document creating the charitable interest expressly provides …

[§554D-414] Modification or termination of uneconomic trust. (a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value of less than $100,000 may terminate the trust if the trustee concludes that the value of the trus…

[§554D-415] Reformation to correct mistakes. 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 what the settlor's intention was and that the terms of the trust were affe…

[§554D-416] Modification to achieve settlor's tax objectives. 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 effec…

[§554D-417] Combination and division of trusts. 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 or adversely affec…

PART V. CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS [§554D-501] Rights of beneficiary's creditor or assignee. To the extent a beneficiary's interest is not subject to a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to reach t…

[§554D-502] Spendthrift provision. (a) A spendthrift provision is valid only if it restrains both voluntary and 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 …

[§554D-503] Exceptions to spendthrift provision. (a) A spendthrift provision is unenforceable against: (b) A claimant against which a spendthrift provision cannot be enforced may obtain from a court an order attaching present or future distributions to or for the benefit of the b…

[§554D-504] Discretionary trusts; effect of standard. (a) Except as otherwise provided in subsection (b), regardless of whether a trust contains a spendthrift provision, a creditor of a beneficiary shall not compel a distribution that is subject to the trustee's discretion, even …

[§554D-505] Creditor's claim against settlor. (a) Regardless of whether the terms of a trust contain a spendthrift provision, the following rules shall apply: (b) For purposes of this section: (c) This section shall not apply to trusts created under chapter 554G. [L 2021, c 32, p…

[§554D-506] Overdue distribution. (a) Regardless of whether a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not …

[§554D-507] Personal obligations of trustee. Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. [L 2021, c 32, pt of §2]

PART VI. REVOCABLE TRUSTS [§554D-601] Capacity of settlor of revocable trust. The capacity required to create or add property to a revocable trust is the same as that required to make a will. Unless otherwise altered by the terms of the trust pursuant to section 554D-602(c), the …

[§554D-602] Revocation or amendment of revocable trust. (a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection shall not apply to a trust created under an instrument executed before January 1, 20…

[§554D-603] Settlor's powers; powers of withdrawal. (a) While the settlor of a revocable trust is alive, rights of the beneficiaries are subject to the control of the settlor, the duties of the trustee are owed exclusively to the settlor, and beneficiaries other than the settlor …

[§554D-604] Limitation on action contesting validity of revocable trust; distribution of trust property. (a) A person may commence a judicial proceeding after the settlor's death to contest the validity of a trust that was revocable at the settlor's death within the earlier of: (…

PART VII. OFFICE OF TRUSTEE [§554D-701] Accepting or declining trusteeship. (a) Except as otherwise provided in subsection (c), a person designated as trustee accepts the trusteeship: (b) A person designated as trustee who has not yet accepted the trusteeship may reject the trust…

[§554D-702] Trustee's bond. (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 re…