(a)(1) 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.(2) A settlor's power to consent to a trust's modification or termination may be exercised by: (A) an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust;(B) the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or(C) the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.(b) A noncharitable irrevocable trust may be: (1) terminated upon consent of all of the beneficiaries if a court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust; or(2) modified upon consent of all of the beneficiaries if a court concludes that modification is not inconsistent with a material purpose of the trust.(c) A spendthrift provision in the terms of the trust is presumed to constitute a material purpose of s if a court concludes that modification is not inconsistent with a material purpose of the trust.(c) A spendthrift provision in the terms of the trust is presumed to constitute a material purpose of the trust.(d) Upon termination of a trust under subsection (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.(e) 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 a 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.Acts 2005, No. 1031, § 1. (a)(1) 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.(2) A settlor's power to consent to a trust's modification or termination may be exercised by: (A) an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust;(B) the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or(C) the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.(b) A noncharitable irrevocable trust may be: (1) terminated upon consent of all of the beneficiaries if a court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust; or(2) modified upon consent of all of the beneficiaries if a court concludes that modification is not inconsistent with a material purpose of the trust.(c) A spendthrift provision in the terms of the trust is presumed to constitute a material purpose of s if a court concludes that modification is not inconsistent with a material purpose of the trust.(c) A spendthrift provision in the terms of the trust is presumed to constitute a material purpose of the trust.(d) Upon termination of a trust under subsection (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.(e) 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 a 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.Acts 2005, No. 1031, § 1.
Arkansas Legal Code