uniform trust code - Kansas Judicial Branch
uniform trust code - Kansas Judicial Branch
uniform trust code - Kansas Judicial Branch
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annuity, or the valuation and cashout of the interest.<br />
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SECTION 412.<br />
MODIFICATION OR TERMINATION BECAUSE OF<br />
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UNANTICIPATED CIRCUMSTANCES OR INABILITY TO ADMINISTER TRUST<br />
EFFECTIVELY.<br />
(a) The court may modify the administrative or dispositive terms of a <strong>trust</strong> or terminate the<br />
<strong>trust</strong> if, because of circumstances not anticipated by the settlor, modification or termination will<br />
further the purposes of the <strong>trust</strong>. To the extent practicable, the modification must be made in<br />
accordance with the settlor’s probable intention.<br />
(b) The court may modify the administrative terms of a <strong>trust</strong> if continuation of the <strong>trust</strong> on<br />
its existing terms would be impracticable or wasteful or impair the <strong>trust</strong>’s administration.<br />
(c) Upon termination of a <strong>trust</strong> under this section, the <strong>trust</strong>ee shall distribute the <strong>trust</strong><br />
property in a manner consistent with the purposes of the <strong>trust</strong>.<br />
<strong>Kansas</strong> Comment<br />
Subsections (a) and (b) expand <strong>Kansas</strong> law which currently allows the court to terminate a<br />
<strong>trust</strong> if the costs of administration defeat the purposes of the <strong>trust</strong>. K.S.A. 59-2295.<br />
Subsection (c) is consistent with K.S.A. 59-2295 which requires the court to distribute<br />
property in accordance with settlor’s intention.<br />
UTC Comment<br />
This section broadens the court’s ability to apply equitable deviation to terminate or modify<br />
a <strong>trust</strong>. Subsection (a) allows a court to modify the dispositive provisions of the <strong>trust</strong> as well as its<br />
administrative terms. For example, modification of the dispositive provisions to increase support<br />
of a beneficiary might be appropriate if the beneficiary has become unable to provide for support<br />
due to poor health or serious injury. Subsection (a) is similar to Restatement (Third) of Trusts<br />
§ 66(1) (Tentative Draft No. 3, 2001), except that this section, unlike the Restatement, does not<br />
impose a duty on the <strong>trust</strong>ee to petition the court if the <strong>trust</strong>ee is aware of circumstances justifying<br />
judicial modification. The purpose of the “equitable deviation” authorized by subsection (a) is not<br />
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