2012 New York Consolidated Laws
EPT - Estates, Powers & Trusts
Article 7 - TRUSTS
Part 1 - (7-1.1 - 7-1.19) RULES GOVERNING TRUSTS
7-1.19 - Application for termination of uneconomical trust.

 
  § 7-1.19 Application for termination of uneconomical trust
    (a)  Notwithstanding  sections  7-1.5 and 7-2.4 of this article or any
  other contrary provision of law:
    (1) Any trustee or beneficiary of a lifetime or  testamentary  express
  trust  (other than a wholly charitable trust) may, by application to the
  surrogate's court having jurisdiction over the trust, seek a termination
  of  such  trust  when  the  expense  of  administering  the   trust   is
  uneconomical.
    (2)  If,  upon  such application, the court finds that continuation of
  the trust is economically impracticable, that the express terms  of  the
  disposing  instrument  do  not  prohibit its early termination, and that
  such termination would not defeat the specified purpose of the trust and
  would be in the best interests of the beneficiaries, the court may  make
  an  order or decree terminating the trust and directing the distribution
  of the trust assets to and among those beneficiaries who at the time are
  entitled (or entitled in the discretion of the trustee)  to  the  income
  and/or  principal  of  the  trust  and  those beneficiaries who would be
  entitled (or entitled in the discretion of the trustee)  to  the  income
  and/or principal of the trust if it were to terminate immediately before
  such order or decree. The distribution of the trust assets shall be made
  in  such  manner, proportions and shares as in the judgment of the court
  will effectuate the intention of the creator.
    (b) Notice of the application shall be given to such  persons  and  at
  such  time  and  in  such  manner  as  the court, in its discretion, may
  direct.
    (c) If the application or the possibility of the application  of  this
  section  to  any  trust would reduce or eliminate a charitable deduction
  otherwise available to any person under the income tax, gift tax, estate
  tax or generation-skipping transfer tax provisions of the United  States
  Internal  Revenue Code, or the laws of any state of the United States or
  of the District of Columbia, this section shall not apply to such trust.
    (d) This section shall not apply to a supplemental needs  trust  which
  conforms to the provisions of section 7-1.12 of this part.