Modification or Termination of Trust of Uneconomic Reasons

If the total value of a trust is less than One Hundred Fifty Thousand Dollars ($150,000.00) the trustee may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration provided notice is given to the beneficiaries before termination.

The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.

If terminated, the trustee shall distribute the trust property to or for the benefit of the beneficiaries, in such shares as the trustee, or the court in a court proceeding, determines, after taking into account the interests of income and remainder beneficiaries so as to conform as nearly as possible to the intention of the settlor, but a trust that qualified for the marital deduction for tax purposes shall only be distributed to the spouse of the settlor for whom the trust was created.

The right of the trustee to terminate a trust in accordance with applicable provisions of the governing instrument is not affected by the provisions above.

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All content is for informational purposes only. It is also only intended to relate to Mississippi Estate Planning Law. If other states are mentioned, they are mentioned as an example only. No legal advice is provided in this content. Laws change so you need to check for any updates by current laws in Mississippi.

Modification or Termination of Trust of Uneconomic Reasons

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