uniform trust code - Kansas Judicial Branch
uniform trust code - Kansas Judicial Branch
uniform trust code - Kansas Judicial Branch
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wind up the administration of the <strong>trust</strong> and distribute the remaining <strong>trust</strong> property.<br />
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SECTION 817. DISTRIBUTION UPON TERMINATION.<br />
(a) Upon termination or partial termination of a <strong>trust</strong>, the <strong>trust</strong>ee may send to the<br />
beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed<br />
distribution terminates if the beneficiary does not notify the <strong>trust</strong>ee of an objection within 30 days<br />
after the proposal was sent but only if the proposal informed the beneficiary of the right to object<br />
and of the time allowed for objection.<br />
(b) Upon the occurrence of an event terminating or partially terminating a <strong>trust</strong>, the<br />
<strong>trust</strong>ee shall proceed expeditiously to distribute the <strong>trust</strong> property to the persons entitled to it, subject<br />
to the right of the <strong>trust</strong>ee to retain a reasonable reserve for the payment of debts, expenses, and taxes.<br />
(c) A release, upon termination or partial termination of a <strong>trust</strong>, by a beneficiary of<br />
a <strong>trust</strong>ee from liability for breach of <strong>trust</strong> is invalid to the extent:<br />
(1) it was induced by improper conduct of the <strong>trust</strong>ee; or<br />
(2) the beneficiary, at the time of the release, did not know of the<br />
beneficiary’s rights or of the material facts relating to the breach.<br />
<strong>Kansas</strong> Comment<br />
This section is new. The <strong>Kansas</strong> Supreme Court has held that a fiduciary cannot be<br />
compelled to breach his <strong>trust</strong> merely because he is offered a binding release from liability for such<br />
a breach. In re Murdock’s Estate, 220 Kan. 459, Syl. 7, 553 P.2d 876 (1976).<br />
In subsection (c), the <strong>Kansas</strong> drafting committee changed the UTC by inserting the phrase,<br />
“upon termination or partial termination of a <strong>trust</strong>.”<br />
UTC Comment<br />
This section contains several provisions governing distribution upon termination. Other<br />
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