SS HCS HB 1765, 2016 (Amended Section - as Truly Agreed)
456.4B-411. 1. When all of the adult beneficiaries
having the capacity to contract consent, the court may, upon
finding that the interest of any nonconsenting beneficiary will
be adequately protected, modify the terms of a noncharitable
irrevocable trust so as to reduce or eliminate the interests
of some beneficiaries and increase those of others, change
the times or amounts of payments and distributions to beneficiaries,
or provide for termination of the trust at a time earlier or
later than that specified by its terms. The court may at any
time upon its own motion appoint a representative pursuant to
section 456.3-305 to represent a nonconsenting beneficiary.
The court shall appoint such a representative upon the motion
of any party, unless the court determines such an appointment
is not appropriate under the circumstances.
2. Upon termination of a trust under subsection 1 of this section, the trustee shall distribute the trust property as directed by the court.
3. If a trust cannot be terminated or modified under subsection 1 of this section because not all adult beneficiaries having capacity to contract consent or the terms of the trust prevent such modification or termination, the modification or termination may be approved by the court if the court is satisfied that the interests of a beneficiary, other than the settlor, who does not consent will be adequately protected, modification or termination will benefit a living settlor who is also a beneficiary, and:
(1) in the case of a termination, the party seeking termination establishes that continuance of the trust is not necessary to achieve any material purpose of the trust; or
(2) in the case of a modification, the party seeking modification establishes that the modification is not inconsistent with a material purpose of the trust, and the modification is not specifically prohibited by the terms of the trust.
4. This section shall [apply to trusts created under trust instruments that become irrevocable on or after January 1, 2005.] replace the provisions of section 456.590 and shall apply to all trusts that were created under trust instruments that become irrevocable prior to, on, or after January 1, 2005.