Section 414
(a)
After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value of less than $200,000 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
(b)
The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
(c)
Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(d)
This section shall not apply to an easement for conservation or preservation.
(e)
Action may be taken under this section regardless of any spendthrift or similar protective provision.
Procedural advisory commentary (2013)
The trustee of a trust containing assets having a value of less than $200,000 may, after notice to qualified beneficiaries, proceed without court approval to terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the costs of administration. See MUTC at § 414(a).
The court may also modify or terminate a trust or remove the trustee and appoint a different trustee if the court determines that the value of the trust property is insufficient to justify the cost of administration. See MUTC at § 414(b).
Upon termination of the trust, the trustee shall distribute the trust property in a manner consistent with the terms of the trust. See MUTC at §§ 414(c) and (e).
Action may be taken under § 414 despite a spendthrift or similar protective provision. See MUTC at § 414(e).
Form update
To terminate a trust under § 414(b), a Petition to Terminate a Trust (MPC 267) and a proposed Decree and Order to Terminate a Trust (MPC 783) may be filed by any person interested in the trust. A trustee may terminate a trust under § 414(a) without court action. 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.