Section 411
(a)
If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of a non-charitable irrevocable trust, the court may approve the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust.
(b)
A non-charitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A non-charitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
(c)
If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b), the modification or termination may be approved by the court if the court is satisfied that:
- (1) if all of the beneficiaries had consented, the trust could have been modified or terminated under this section; and
- (2) the interests of a beneficiary who does not consent will be adequately protected.
Procedural advisory commentary (2013)
Under § 411, a non-charitable irrevocable trust (“NCIT”) may be either modified or terminated, if:
- (a) the court finds that the settlor and all beneficiaries consent to the modification or termination of the trust even if the modification or termination is inconsistent with a material purpose of the trust. See MUTC at § 411(a).
- (b) all of the beneficiaries consent to the termination or modification of the trust and the court concludes that, in the case of a proposed termination, continuance of the trust is not necessary to achieve any material purpose of the trust or, in the case of a proposed modification, the modification is not inconsistent with a material purpose of the trust. See MUTC at § 411(b).
- (c) all of the beneficiaries do not consent to the proposed modification or termination, but the court is satisfied that, if all of the beneficiaries had consented, the trust could have been modified or terminated and the interests of the nonconsenting beneficiary are adequately protected. See MUTC at § 411(c)(1)-(2).
Form update
To terminate a trust under this section, a Petition to Terminate a Trust (MPC 267) and a proposed Decree and Order to Terminate a Trust (MPC 783) may be filed. A General Trust Petition (MPC 201) and a proposed Decree and Order of General Probate/Trust Petition (MPC 792) may be used to initiate an action to modify a trust. Notice shall be as provided in § 109 of the MUTC.