THE FOLLOWING LEGAL STUDY ARTICLE POSTING IS INTENDED TO SUPPORT AWARENESS AND UNDERSTANDING. IT IS ONLY A PRELIMINARY LEVEL LEGAL STUDY ARTICLE AND IT IS NOT LEGAL ADVICE. IF THE READER SEEKS LEGAL ADVICE CONCERNING HIS OR HER PARTICULAR SITUATION, HE OR SHE SHOULD SEEK OUT AN ATTORNEY IN A LAWYER CLIENT RELATIONSHIP.
————————————————————————————
The beneficiaries of a noncharitable irrevocable trust with a decedent settlor can not terminate the trust based solely on their consent unless the continuance of the trust is not necessary to achieve any material purpose of the trust.
According to Pennsylvania’s Uniform Trust Act (“UTA”), the trustee or a beneficiary of a noncharitable irrevocable trust with a decedent settlor may commence a proceeding in the Orphan’s Court division of the Court of Common Please in order to approve or disapprove a proposed termination . See 20 Pa. C.S § 7740(b).
Such a trust may be terminated upon consent of all the beneficiaries only if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. See 20 Pa. C.S § 7740.1 (b).
If not all the beneficiaries consent to a proposed termination of the trust, the termination may be approved by the court only if the court is satisfied that: (1) if all the beneficiaries had consented, the trust could have been terminated as not necessary to achieve any material purpose of the trust , and (2) the interests of a beneficiary who does not consent will be adequately protected. See 20 Pa. C.S. § 7740.1 (d)(1)(2)
As an alternative to an Orphan’s Court proceeding, all beneficiaries and trustees may enter into a binding nonjudicial settlement agreement with respect to the termination of the trust , but only to the extent that it is not inconsistent with a material purpose of the trust and includes terms and conditions that could be properly approved by the Orphan’s Court under the UTA or other applicable law See 20 Pa. C.S § 7710.1(b),(c),(d)(11); 20 Pa. C.S § 102; 20 Pa. C.S § 7706 .
Any beneficiary or trustee of a trust may request the Orphan’s Court to approve a nonjudicial settlement agreement to determine whether the agreement to terminate such a noncharitable irrevocable trust contains terms and conditions the court could have properly approved. See 20 Pa. C.S § 7710.1 (e)
The common law of trusts and principles of equity supplement Pennsylvania’s Uniform Trust Act (“UTA”), except to the extent that they are modified by the UTA or another Pennsylvania statute. See 20 Pa. C.S § 7706
To See A Categorically Listed Archive Of Preliminary Legal Study Based Article Posts , See The Drop Down Box On This Page Or Click https://studypostlex.com/categorizedarchive/