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uniform trust code - Kansas Judicial Branch

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court may instead validate the <strong>trust</strong> by specifying particular charitable purposes or recipients, or<br />

delegate to the <strong>trust</strong>ee the framing of an appropriate scheme. See Restatement (Second) of Trusts<br />

§ 397 cmt. d (1959). Subsection (b) of this section is a corollary to Section 413, which states the<br />

doctrine of cy pres. Under Section 413(a), a <strong>trust</strong> failing to state a general charitable purpose does<br />

not fail upon failure of the particular means specified in the terms of the <strong>trust</strong>. The court must<br />

instead apply the <strong>trust</strong> property in a manner consistent with the settlor’s charitable purposes to the<br />

extent they can be ascertained.<br />

Subsection (b) does not apply to the long-established estate planning technique of delegating<br />

to the <strong>trust</strong>ee the selection of the charitable purposes or recipients. In that case, judicial intervention<br />

to supply particular terms is not necessary to validate the creation of the <strong>trust</strong>. The necessary terms<br />

instead will be supplied by the <strong>trust</strong>ee. See Restatement (Second) of Trusts § 396 (1959). <strong>Judicial</strong><br />

intervention under subsection (b) will become necessary only if the <strong>trust</strong>ee fails to make a selection.<br />

See Restatement (Second) of Trusts § 397 cmt. d (1959). Pursuant to Section 110(b), the charitable<br />

organizations selected by the <strong>trust</strong>ee would not have the rights of qualified beneficiaries under this<br />

Code because they are not expressly designated to receive distributions under the terms of the <strong>trust</strong>.<br />

Contrary to Restatement (Second) of Trusts § 391 (1959), subsection (c) grants a settlor<br />

standing to maintain an action to enforce a charitable <strong>trust</strong>. The grant of standing to the settlor does<br />

not negate the right of the state attorney general or persons with special interests to enforce either<br />

the <strong>trust</strong> or their interests. For the law on the enforcement of charitable <strong>trust</strong>s, see Susan N. Gary,<br />

Regulating the Management of Charities: Trust Law, Corporate Law, and Tax Law, 21 U. Hawaii<br />

L. Rev. 593 (1999).<br />

SECTION 406. CREATION OF TRUST INDUCED BY FRAUD, DURESS, OR<br />

UNDUE INFLUENCE. (a) A <strong>trust</strong> is void to the extent its creation was induced by fraud, duress,<br />

or undue influence.<br />

(b) Any provision in a <strong>trust</strong>, written or prepared for another person, that transfers property<br />

and that gives the scrivener or the scrivener’s parent, children, issue, sibling or spouse any direct or<br />

indirect gift is invalid unless; (1) the scrivener is related to the settlor by blood or marriage; or (2)<br />

it affirmatively appears that the settlor had read and knew the contents of the <strong>trust</strong> and had<br />

independent legal advice with reference thereto. The words "children" and "issue" as used in this<br />

section, are defined in K.S.A. 59-501.<br />

<strong>Kansas</strong> Comment<br />

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