75-7-411 - Modification or termination of noncharitable irrevocable trust by consent. - Utah Statutes

75-7-411. Modification or termination of noncharitable irrevocable trust byconsent.
(1) A noncharitable, irrevocable trust may be modified or terminated upon consent of thesettlor and all beneficiaries, even if the modification or termination is inconsistent with a materialpurpose of the trust. A settlor's power to consent to a trust's termination may be exercised by anagent under a power of attorney only to the extent expressly authorized by the power of attorneyor the terms of the trust, by the settlor's conservator with the approval of the court supervising theconservatorship if an agent is not so authorized, or by the settlor's guardian with the approval ofthe court supervising the guardianship if an agent is not so authorized and a conservator has notbeen appointed.
(2) A noncharitable, irrevocable trust may be terminated upon consent of all of thebeneficiaries if the court concludes that continuance of the trust is not necessary to achieve anymaterial purpose of the trust. A noncharitable, irrevocable trust may be modified upon consentof all of the beneficiaries if the court concludes that modification is not inconsistent with amaterial purpose of the trust.
(3) A spendthrift provision in the terms of the trust is not presumed to constitute amaterial purpose of the trust.
(4) Upon termination of a trust under Subsection (1) or (2), the trustee shall distribute thetrust property as agreed by the beneficiaries.
(5) If not all of the beneficiaries consent to a proposed modification or termination of thetrust under Subsection (1) or (2), the modification or termination may be approved by the court ifthe court is satisfied that:
(a) if all of the beneficiaries had consented, the trust could have been modified orterminated under this section; and
(b) the interests of a beneficiary who does not consent will be adequately protected.

Repealed and Re-enacted by Chapter 89, 2004 General Session