Mass. General Laws c.203E, Article 1. Procedural advisory commentary (2013)

Commentary from 2013 on Article 1 (General provisions and definitions) of the Massachusetts Uniform Trust Code (MUTC).

For more information, please refer to: Procedural advisory: introduction.

Article 1: General provisions and definitions

Article 1 of the MUTC contains General Provisions and Definitions. Section 102 outlines the scope of the MUTC and provides that the MUTC applies to both testamentary and inter vivos trusts of a donative nature. MUTC at § 102. The MUTC does not apply to business trusts or other non-donative trust arrangements.

Section 103 provides important definitions applicable to terms referenced in the MUTC. For example, under the MUTC, a person with a beneficial interest in a trust may be defined as either a beneficiary or a qualified beneficiary. A beneficiary is defined as “a person who has a present or future beneficial interest in a trust, vested or contingent.” MUTC at § 103.

A qualified beneficiary, however, is “a beneficiary who, on the date the beneficiary’s qualification is determined: (i) is a distributee or permissible distributee of trust income or principal; or (ii) would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.” MUTC at § 103. See also, MUTC at § 110(b).

The distinction may be relevant. Qualified beneficiaries are a subset of beneficiaries. In some sections of the MUTC, qualified beneficiaries are required to act and in other sections, the larger “beneficiary” group must act. For example, the court may remove a trustee if removal is requested by all of the qualified beneficiaries. See MUTC at § 706(b)(4). Conversely, the court may terminate a non-charitable irrevocable trust if all beneficiaries consent and the continuance of the trust is not necessary to achieve any material purpose. See MUTC at § 411(b). Keep in mind that the definition section in the MUPC has not been amended since the enactment of the MUTC. The MUPC itself does not distinguish between types of beneficiaries. See MUPC at § 1-201(3). This may be relevant in terms of a compromise proceeding relating to a trust brought under the MUPC. See MUPC at § 3-1101.

The MUTC contains both default and mandatory rules. Generally speaking, the terms of the trust prevail over the statutory provisions of the MUTC. MUTC at § 105. There are exceptions to this general rule outlined in § 105. As noted in § 106, the common law of trusts and principles of equity apply except to the extent modified by the MUTC.

Date published:	January 24, 2013