55-544.11 - Modification or termination of noncharitable irrevocable trust by consent. - Virginia Statutes

§ 55-544.11. Modification or termination of noncharitable irrevocable trustby consent.

A. If upon petition the court finds that the settlor and all beneficiariesconsent to the modification or termination of a noncharitable irrevocabletrust, the court shall enter an order approving the modification ortermination even if the modification or termination is inconsistent with amaterial purpose of the trust. A settlor's power to consent to a trust'smodification or termination may be exercised by an agent under a power ofattorney only to the extent expressly authorized by the power of attorney orthe terms of the trust; by the settlor's conservator with the approval of thecourt supervising the conservatorship if an agent is not so authorized; or bythe settlor's guardian with the approval of the court supervising theguardianship if an agent is not so authorized and a conservator has not beenappointed.

B. A noncharitable irrevocable trust may be terminated upon consent of all ofthe beneficiaries if the court concludes that continuance of the trust is notnecessary to achieve any material purpose of the trust. A noncharitableirrevocable trust may be modified upon consent of all of the beneficiaries ifthe court concludes that modification is not inconsistent with a materialpurpose of the trust.

C. Upon termination of a trust under subsection A or B, the trustee shalldistribute the trust property as agreed by the beneficiaries.

D. If not all of the beneficiaries consent to a proposed modification ortermination of the trust under subsection A or B, the modification ortermination may be approved by the court if the court is satisfied that:

1. If all of the beneficiaries had consented, the trust could have beenmodified or terminated under this section; and

2. The interests of a beneficiary who does not consent will be adequatelyprotected.

(2005, c. 935.)