58a-417. Combination and division of trusts. - Kansas Statutes

58a-417

Chapter 58a.--KANSAS UNIFORM TRUST CODE Article 4.--CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST

      58a-417.   Combination and division oftrusts.(a) Afternotice to thequalified beneficiaries, a trustee may combine two or more trusts into a singletrust or divide a trustinto two or more separate trusts, if the result does not impair rights of anybeneficiary or adverselyaffect achievement of the purposes of the trust.The terms of each new trust created by a division under this section do nothave to be identical if the interest of each beneficiary is substantially thesame under the terms of the trust prior to its division and the combined termsofall trusts after the division. Two or more trusts may be combined into a singletrust if the interests of each beneficiary in the trust resulting from thecombination are substantially the same as the combined interests of thebeneficiary in the trusts prior to the combination. The trustee shall determinethe terms controlling any trust after its combination as authorized by thissection.The trustee may makea division underthis sectionby:

      (1)   Giving written notice of the division, not later than the 30th daybefore the date of adivision under this subsection, to each qualified beneficiary; and

      (2)   executing a written instrument,acknowledged before a notary public or other person authorized to takeacknowledgments ofconveyances of real estate stating that the trust has been divided pursuant tothis section and that thenotice requirements of this subsection have been satisfied.

      (b)   A trustee, in the written instrument dividing a trust, shall allocatetrust property among the separate trusts on a fractional basis by identifyingthe assets and liabilities passing to eachseparatetrust, or on any other reasonable basis. The trustee shall allocateundesignated trust propertyreceived after the trustee has divided the trust into separate trusts in themanner provided by thewritten instrument dividing the trust, or, in the absence of a provision in thewritten instrument, ina manner determined by the trustee.

      (c)   The trustee may combine two or more trusts under this section by:

      (1)   Giving a written notice of the combination, not later than the 30th daybefore the effectivedate of the combination, to each qualified beneficiary; and

      (2)   executing a written instrument, acknowledged before a notary public orother personauthorized to take acknowledgments of conveyances of real estate stating thatthe trust has beencombined pursuant to this section and that the notice requirements of thissubsection have beensatisfied.

      (d)   The trustee may divide or combine a testamentary trust after the willestablishing the trusthas been admitted to probate, even if the trust will not be funded until alater date. The trustee maydivide or combine any other trust before it is funded if the instrumentestablishing the trust is notrevocable at the time of the division or combination.

      History:   L. 2002, ch. 133, § 38;L. 2006, ch. 23, § 7; July 1.