2010 Pennsylvania Code
Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES
Chapter 77 - Trusts
7740.1 - Modification or termination of noncharitable irrevocable trust by consent - UTC 411.

     § 7740.1.  Modification or termination of noncharitable
                irrevocable trust by consent - UTC 411.
        (a)  Consent by settlor and beneficiaries.--A noncharitable
     irrevocable trust may be modified or terminated upon consent of
     the settlor and all beneficiaries even if the modification or
     termination is inconsistent with a material purpose of the
     trust. A settlor's power to consent to a trust's modification or
     termination may be exercised by a guardian, an agent under the
     settlor's general power of attorney or an agent under the
     settlor's limited power of attorney that specifically authorizes
     that action. Notwithstanding Subchapter C (relating to
     representation), the settlor may not represent a beneficiary in
     the modification or termination of a trust under this
     subsection.
        (b)  Consent by beneficiaries with court approval.--A
     noncharitable irrevocable trust may be modified upon the consent
     of all the beneficiaries only if the court concludes that the
     modification is not inconsistent with a material purpose of the
     trust. A noncharitable irrevocable trust may be terminated upon
     consent of all the beneficiaries only if the court concludes
     that continuance of the trust is not necessary to achieve any
     material purpose of the trust.
        (b.1)  Spendthrift provision.--A spendthrift provision in a
     trust instrument is presumed to constitute a material purpose of
     the trust.
        (c)  Distribution upon termination.--Upon termination of a
     trust under subsection (a) or (b), the trustee shall distribute
     the trust property as agreed by the beneficiaries.
        (d)  Consent by some beneficiaries with court approval.--If
     not all 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 only if
     the court is satisfied that:
            (1)  if all 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.

        Cross References.  Section 7740.1 is referred to in sections
     7705, 7740 of this title.

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