The term “Court” below means a Mississippi Chancery Court.
In Mississippi, if the Trustee fails to terminate and disburse the principal and income of the trust when the trust terminates by it’s terms or operation of law, a beneficiary may petition the Chancery Court to compel termination and disbursement.
All beneficiaries of the trust may also seek termination of am irrevocable trust after the maker dies if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.
If not all of the qualified beneficiaries consent to termination of the trust, termination may be approved by the court if the court is satisfied that:
(1) If all of the qualified beneficiaries had consented, the trust could have been terminated under this section; and
(2) The interests of a qualified beneficiary who does not consent will be adequately protected.
Termination upon request of the beneficiaries of an irrevocable trust cannot be done if a federal or state charitable deduction was allowed upon transfers to the trust.
The court may terminate a trust if, because of circumstances not anticipated by the maker, termination will further the purposes of the trust. Upon such termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than One Hundred Fifty Thousand Dollars ($150,000.00) may terminate a trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
The court may modify or terminate a trust if it determines that the value of the trust property is insufficient to justify the cost of administration. Upon such termination, the trustee shall distribute the trust property to or for the benefit of the beneficiaries. but a trust that qualified for the marital deduction for tax purposes shall only be distributed to the spouse of the maker for whom the trust was created.
