27.03.2014 Views

uniform trust code - Kansas Judicial Branch

uniform trust code - Kansas Judicial Branch

uniform trust code - Kansas Judicial Branch

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

1<br />

2<br />

3<br />

4<br />

5<br />

6<br />

7<br />

8<br />

9<br />

10<br />

11<br />

12<br />

13<br />

14<br />

15<br />

16<br />

17<br />

18<br />

19<br />

20<br />

21<br />

22<br />

23<br />

24<br />

25<br />

26<br />

27<br />

28<br />

29<br />

30<br />

31<br />

32<br />

33<br />

34<br />

35<br />

36<br />

Subsection (b) provides that a vacancy in the co<strong>trust</strong>eeship must be filled only if the <strong>trust</strong> has<br />

no remaining <strong>trust</strong>ee. If a vacancy in the co<strong>trust</strong>eeship is not filled, Section 703 authorizes the<br />

remaining co<strong>trust</strong>ees to continue to administer the <strong>trust</strong>. However, as provided in subsection (d), the<br />

court, exercising its inherent equity authority, may always appoint additional <strong>trust</strong>ees if the<br />

appointment would promote better administration of the <strong>trust</strong>. See Restatement (Third) of Trusts<br />

§ 34 cmt. e (Tentative Draft No. 2, approved 1999); Restatement (Second) of Trusts § 108 cmt. e<br />

(1959).<br />

Absent an effective provision in the terms of the <strong>trust</strong>, subsection (c)(2) permits a vacancy<br />

in the <strong>trust</strong>eeship to be filled, without the need for court approval, by a person selected by<br />

unanimous agreement of the qualified beneficiaries. Pursuant to Section 705(a)(1), the qualified<br />

beneficiaries may also receive the <strong>trust</strong>ee’s resignation. If a <strong>trust</strong>ee resigns following notice to the<br />

qualified beneficiaries as provided in Section 705, the <strong>trust</strong> may be transferred to a successor<br />

appointed pursuant to subsection (c)(2) of this section, all without court involvement. A<br />

nonqualified beneficiary who is displeased with the choice of the qualified beneficiaries may petition<br />

the court for removal of the <strong>trust</strong>ee under Section 706.<br />

If the qualified beneficiaries fail to make an appointment, subsection (c)(3) authorizes the<br />

court to fill the vacancy. In making the appointment, the court should consider the objectives and<br />

probable intention of the settlor, the promotion of the proper administration of the <strong>trust</strong>, and the<br />

interests and wishes of the beneficiaries. See Restatement (Third) of Trusts § 34 cmt. f (Tentative<br />

Draft No. 2, approved 1999); Restatement (Second) of Trusts § 108 cmt. d (1959).<br />

In the case of a revocable <strong>trust</strong>, the appointment of a successor will normally be made<br />

directly by the settlor. As to the duties of a successor <strong>trust</strong>ee with respect to the actions of a<br />

predecessor, see Section 812.<br />

2001 UTC COMMENT<br />

This section includes the 2001 amendments to the 2000 Uniform Trust Code in subsection<br />

(c), (d) and (e). The changes are as follows:<br />

"(c) A vacancy in a <strong>trust</strong>eeship of a noncharitable <strong>trust</strong> that is<br />

required to be filled must be filled in the following order of priority:"<br />

"(d) A vacancy in a <strong>trust</strong>eeship of a charitable <strong>trust</strong> that is required to<br />

be filled must be filled in the following order of priority:<br />

(1) by a person designated in the terms of the <strong>trust</strong> to act as<br />

successor <strong>trust</strong>ee;<br />

(2) by a person selected by the charitable organizations<br />

expressly designated to receive distributions under the terms of the<br />

<strong>trust</strong> if the [attorney general] concurs in the selection; or<br />

(3) by a person appointed by the court. "<br />

120

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!