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- Alaska Statutes.
- Title 13. Decedents' Estates, Guardianships, Transfers, and Trusts.
- Chapter 36. Trust Administration
- Section 360. Modification or Termination of Irrevocable Trust By Consent.
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. Construction of Trust to Achieve Settlor's Tax Objectives.
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. Uneconomical Irrevocable Trust.
AS 13.36.360. Modification or Termination of Irrevocable Trust By Consent.
- (a) Except as otherwise provided by this section, on petition by a trustee, settlor, or beneficiary, a court may modify or
terminate an irrevocable trust if all of the beneficiaries consent and if continuation of the trust on the existing
terms of the trust is not necessary to further a material purpose of the trust. However, the court, in its discretion,
may determine that the reason for modifying or terminating the trust under the circumstances outweighs the interest in
accomplishing the material purposes of the trust. The inclusion of a restriction on the voluntary or involuntary
transfer of trust interests under AS 34.40.110
may constitute a material purpose of the trust under this subsection, but is not presumed to constitute a material
purpose of the trust under this subsection.
- (b) Unless otherwise provided in the trust instrument, an irrevocable trust may not be modified or terminated under this
section while a settlor is also a discretionary beneficiary of the trust.
- (c) If a beneficiary other than a qualified beneficiary does not consent to a modification or termination of an
irrevocable trust that is proposed by the trustee, settlor, or other beneficiaries, a court may approve the proposed
modification or termination if the court determines
- (1) if all the beneficiaries had consented, the trust could have been modified or terminated under this section; and
- (2) the rights of a beneficiary who does not consent will be adequately protected or not significantly impaired.
- (d) In (c) of this section, "qualified beneficiary" means a beneficiary who
- (1) on the date the beneficiary's qualification is determined, is entitled or eligible to receive a distribution of trust
income or principal; or
- (2) would be entitled to receive a distribution of trust income or principal if the event causing the trust's termination
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