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Comparison of Uniform Trust Code, DC Trust Code, Maryland Trust Act, and Virginia Trust Code, with Annotations

  • Preamble
  • Article 1
  • Article 2
  • Article 3
  • Article 4
  • Article 5
  • Article 6
  • Article 7
  • Article 8
  • UPIA-UTC Article 9
  • Article 10
  • Article 11
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A

Article 4

— Creation, Validity, Modification and Termination of a Trust

§ 401   § 402   § 403   § 404   § 405   § 406   § 407   § 408   § 409   § 410   § 411   § 412   § 413   § 414   § 415   § 416   § 417  —–  DC § 19-1304.18   VA § 64.2-736   VA § 64.2-737   VA § 64.2-738   VA § 64.2-739   VA § 64.2-740   VA § 64.2-741

UTC §401 provides that a trust may be created by (i) the transfer of property to a trustee during the settlor’s lifetime or by will, (ii) the declaration of by the owner of property that the owner holds property as trustee or (iii) exercise of a power of appointment in favor of a trustee. DC §19-1304.01(4) also permits the creation of a trust by a court in lieu of the transfer of property to a conservator or guardian. VA §64.2-719(4) also permits the court to authorize the creation of a trust by a conservator on behalf of an incapacitated person. VA §64.2-719(1) permits an attorney-in-fact to create a trust for the benefit of the principal if the power of attorney expressly authorizes the attorney-in-fact to do so.
UTC §401 provides that a trust may be created by (i) the transfer of property to a trustee during the settlor’s lifetime or by will, (ii) the declaration of by the owner of property that the owner holds property as trustee or (iii) exercise of a power of appointment in favor of a trustee. DC §19-1304.01(4) also permits the creation of a trust by a court in lieu of the transfer of property to a conservator or guardian. VA §64.2-719(4) also permits the court to authorize the creation of a trust by a conservator on behalf of an incapacitated person. VA §64.2-719(1) permits an attorney-in-fact to create a trust for the benefit of the principal if the power of attorney expressly authorizes the attorney-in-fact to do so.

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UTC

§ 401. Methods of creating trust.

A trust may be created by:
(1) transfer of property to another person as trustee during the settlor’s lifetime or by will or other disposition taking effect upon the settlor’s death;
(2) declaration by the owner of property that the owner holds identifiable property as trustee; or
(3) exercise of a power of appointment in favor of a trustee.

DC

§ 19-1304.01. Methods of creating trust.

A

A trust may be created by:
(1) Transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death;
(2) Declaration by the owner of property that the owner holds identifiable property as trustee;
(3) Exercise of a power of appointment in favor of a trustee; or
(4) A court for the benefit of an individual in lieu of a transfer of property to a conservatorship or guardianship pursuant to Chapter 1 or subchapter VI of Chapter 20 of Title 21 of the District of Columbia Official Code.

MD

§ 14.5–401. Creation of trust.

A trust may be created by:
(1) Transfer of property to another person as trustee during the lifetime of the settlor or by will or other disposition taking effect on the death of the settlor;
(2) Declaration by the owner of property that the owner holds identifiable property as trustee; or
(3) Exercise of a power of appointment in favor of a trustee.

VA

§ 64.2-719. Methods of creating trust

A

A. A trust may be created by:
1. Transfer of property to another person as trustee during the settlor's lifetime by the settlor or by the settlor's agent, acting in accordance with § 64.2-1612, under a power of attorney that expressly authorizes the agent to create a trust on the settlor's behalf; or by will or other disposition taking effect upon the settlor's death;
2. Declaration by the owner of property that the owner holds identifiable property as trustee;
3. Exercise of a power of appointment in favor of a trustee; or
4. A conservator acting in accordance with § 64.2-2023.
B. A circuit court, upon petition from an interested party, may create and establish a trust with such
trustee and such terms as the court determines. In an order creating and establishing the trust, the court
shall determine whether the trustee shall have a duty to qualify in the clerk's office; post bond, with or
without surety; or file an inventory and annual accounting with the commissioner of accounts as would
apply to a testamentary trustee.

UTC §402, DC §19-1304.02(5), and VA §64.2-720(5) provide that a valid trust is not created if the same person is the sole trustee and the sole beneficiary. MD §14.5-402 omits this provision. Note that often a revocable trust has a sole trustee who is also the sole current beneficiary, but in most, if not all, cases, there are other remainder beneficiaries; accordingly, DC §19-1304.02(5) and VA §64.2-720.5 do not preclude revocable trusts that have one or more remainder beneficiaries.

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UTC

§ 402. Requirements for creation.

(a) A trust is created only if:
(1) the settlor has capacity to create a trust;
(2) the settlor indicates an intention to create the trust;
(3) the trust has a definite beneficiary or is:
(A) a charitable trust;
(B) a trust for the care of an animal, as provided in Section 408; or
(C) a trust for a noncharitable purpose, as provided in Section 409;
(4) the trustee has duties to perform; and
(5) the same person is not the sole trustee and sole beneficiary.
(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

DC

§ 19-1304.02. Requirements for creation.

(a) A trust is created only if:
(1) The settlor has capacity to create a trust;
(2) The settlor indicates an intention to create the trust;
(3) The trust has a definite beneficiary or is:
(A) A charitable trust;
(B) A trust for the care of an animal, as provided in section 19-1304.08; or
(C) A trust for a noncharitable purpose, as provided in section 19-1304.09;
(4) The trustee has duties to perform; and
(5) The same person is not the sole trustee and sole beneficiary.
(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

MD

§ 14.5–402. Requirements.

A

(a) A trust is created only if:
(1) The settlor has capacity to create a trust;
(2) The settlor indicates an intention to create the trust;
(3) The trust has a definite beneficiary or is:
(i) A charitable trust;
(ii) A trust for the care of an animal, as provided in § 14.5–407 of this subtitle; or
(iii) A trust for a noncharitable purpose, as provided in § 14.5–408 of this subtitle; and
(4) The trustee has duties to perform.
[MISSING UTC(a)(5)]
(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(c) (1) A power in a trustee or in another person under the terms of the trust to select a beneficiary from an indefinite class is valid.
(2) If the power described in paragraph (1) of this subsection is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons that would have taken the property had the power not been conferred.

VA

§ 64.2-720. Requirements for creation

A. A trust is created only if:
1. The settlor has capacity to create a trust; or when the trust is created by the settlor's agent under a power of attorney, which expressly authorizes the agent to create a trust on the settlor's behalf;
2. The settlor or his agent indicates an intention to create the trust;
3. The trust has a definite beneficiary or is:
a. A charitable trust;
b. A trust for the care of an animal, as provided in § 64.2-726; or
c. A trust for a noncharitable purpose, as provided in § 64.2-727;
4. The trustee has duties to perform; and
5. The same person is not the sole trustee and sole beneficiary.
B. A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
C. A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

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UTC

§ 403. Trusts created in other jurisdictions.

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:
(1) the settlor was domiciled, had a place of abode, or was a national;
(2) a trustee was domiciled or had a place of business; or
(3) any trust property was located.

DC

§ 19-1304.03. Trusts created in other jurisdictions.

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:
(1) The settlor was domiciled, had a place of abode, or was a national;
(2) A trustee was domiciled or had a place of business; or
(3) Any trust property was located.

MD

§ 14.5–403. Validity of trust not created by will.

A trust not created by will is validly created if the creation of the trust complies with:
(1) The law of the jurisdiction in which the trust instrument was executed; or
(2) The law of the jurisdiction in which, at the time of creation:
(i) The settlor was domiciled [MISSING "HAD A PLACE OF ABODE"] or was a national;
(ii) A trustee of the trust was domiciled or had a place of business; or
(iii) Any trust property was located.

VA

§ 64.2-721. Trusts created in other jurisdictions

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:
1. The settlor was domiciled, had a place of abode, or was a national;
2. A trustee was domiciled or had a place of business; or
3. Any trust property was located.

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UTC

§ 404. Trust purposes.

A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries.

DC

§ 19-1304.04. Trust purposes.

A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries.

MD

§ 14.5–404. Purposes and benefits.

(a) A trust may be created only to the extent that the purposes of the trust are lawful, not contrary to public policy, and possible to achieve.
(b) A trust and the terms of the trust shall be for the benefit of the beneficiaries of the trust.

VA

§ 64.2-722. Trust purposes

A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms shall be for the benefit of its beneficiaries.

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UTC

§ 405. Charitable purposes; enforcement.

(a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
(b) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor’s intention to the extent it can be ascertained.
(c) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.

DC

§ 19-1304.05. Charitable purposes; enforcement.

(a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
(b) If the terms of a charitable trust do not indicate or otherwise provide for the selection of a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent it can be ascertained.
(c) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.

MD

Omitted.

VA

§ 64.2-723. Charitable purposes; enforcement

A. A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community.
B. If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the court may select one or more charitable purposes or beneficiaries. The selection shall be consistent with the settlor's intention to the extent it can be ascertained.
C. The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.

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UTC

§ 406. Creation of trust induced by fraud, duress, or undue influence.

A trust is void to the extent its creation was induced by fraud, duress, or undue influence.

DC

§ 19-1304.06. Creation of trust induced by fraud, duress, or undue influence.

A trust is void to the extent its creation was induced by fraud, duress, or undue influence.

MD

§ 14.5-405. Void trusts.

A trust is void to the extent that the creation of the trust was induced by fraud, duress, or undue influence.

VA

§ 64.2-724. Creation of trust induced by fraud, duress, or undue influence

A trust is void to the extent its creation was induced by fraud, duress, or undue influence.

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UTC

§ 407. Evidence of oral trust.

Except as required by a statute other than this [Code], a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.

DC

§ 19-1304.07. Evidence of oral trust.

Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.

MD

§ 14.5-406. Oral trusts established by clear and convincing evidence.

Except as required by a provision other than this title, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and the terms of the oral trust may be established only by clear and convincing evidence.

VA

§ 64.2-725. Evidence of oral trust

Except as required by a statute other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.

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UTC

§ 408. Trust for care of animal.

(a) A trust may be created to provide for the care of an animal alive during the settlor’s lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor’s lifetime, upon the death of the last surviving animal.
(b) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.
(c) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor’s successors in interest.

DC

§ 19-1304.08. Trust for care of animal.

(a) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal.
(b) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.
(c) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.

MD

§ 14.5-407. Trusts for care of animal.

***Former MD E&T 14-112 re-enacted***
(a) A trust may be created to provide for the care of an animal alive during the lifetime of the settlor.
(b) A trust authorized by this section terminates:
(1) If created to provide for the care of one animal alive during the lifetime of the settlor, on the death of the animal;
Or
(2) If created to provide for the care of more than one animal alive during the lifetime of the settlor, on the death of the last surviving animal.
(c) (1) A trust authorized by this section may be enforced by a person appointed under the terms of the trust or, if no person is appointed, by a person appointed by the court.
(2) A person having an interest in the welfare of an animal, the care for which a trust has been established, may request the court to appoint a person to enforce the trust or to remove a person appointed.
(d) (1) Except to the extent that the court may determine that the value of a trust authorized by this section exceeds the amount required for the use intended by the trust, the property of the trust may be applied only to the intended use of the trust.
(2) Except as otherwise provided under the terms of the trust, property not required for the intended use of the trust shall be distributed:
(i) To the settlor, if living; or
(ii) If the settlor is deceased, to the successors in interest of the settlor.

VA

§ 64.2-726. Trust for care of animal

A. A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal. Funds from the trust may be applied to any outstanding expenses of the trust and for burial or other postdeath expenditures for animal beneficiaries as provided for in the instrument creating the trust.
B. The instrument creating the trust shall be liberally construed to bring the transfer within the scope of trusts governed by this section, to presume against the merely precatory or honorary nature of the disposition, and to carry out the general intent of the transferor. Extrinsic evidence is admissible in determining the transferor's intent.

C. A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed. The appointed person shall have the rights of a trust beneficiary for the purpose of enforcing the trust, including receiving accountings, notices, and other information from the trustee and providing consents. Reasonable compensation for a person appointed by the court may be paid from the assets of the trust.
D. Except as ordered by a court or required by the trust instrument, no filing, report, registration, periodic accounting, separate maintenance of funds, appointment, or surety bond shall be required by reason of the existence of the fiduciary relationship of the trustee.

E. Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use shall be distributed to the settlor, if then living. If the settlor is deceased, such property shall be distributed pursuant to the residuary clause of the settlor's will if the trust for the animal was created in a preresiduary clause in the will or pursuant to the residuary provisions of the inter vivos trust if the trust for the animal was created in a preresiduary clause in the trust instrument; otherwise, such property shall be distributed to the settlor's successors in interest.

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UTC

§ 409. Noncharitable trust without ascertainable beneficiary.

Except as otherwise provided in Section 408 or by another statute, the following rules apply:
(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than [21] years.
(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor’s successors in interest.

DC

§ 19-1304.09. Noncharitable trust without ascertainable beneficiary.

Except as otherwise provided in section 19-1304.08 or by D.C. Official Code § 43-113, the following rules apply:
(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 21 years.
(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.

MD

§ 14.5-408. Noncharitable trusts.

Except as otherwise provided in § 14.5–407 of this subtitle or by another statute, the following rules apply:
(1) (i) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee; and
(ii) A trust described in item (i) of this item may not be enforced for more than 21 years unless the settlor elects otherwise;
(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court; and
(3) (i) Property of a trust authorized by this section may be applied only to the intended use of the trust, except to the extent that the court determines that the value of the trust property exceeds the amount required for the intended use; and
(ii) Except as otherwise provided in the terms of a trust described in item (i) of this item, property not required for the intended use shall be distributed to the settlor, if then living, or to the successors in interest of the settlor, if the settlor is not then living.

VA

§ 64.2-727. Noncharitable trust without ascertainable beneficiary

Except as otherwise provided in § 64.2-726 or by another statute, the following rules apply:
1. A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than 21 years.
2. A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.
3. Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use shall be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.

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UTC

§ 410. Modification or termination of trust; proceedings for approval or disapproval.

(a) In addition to the methods of termination prescribed by Sections 411 through 414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(b) A proceeding to approve or disapprove a proposed modification or termination under Sections 411 through 416, or trust combination or division under Section 417, may be commenced by a trustee or beneficiary, [and a proceeding to approve or disapprove a proposed modification or termination under Section 411 may be commenced by the settlor]. The settlor of a charitable trust may maintain a proceeding to modify the trust under Section 413.

DC

§ 19-1304.10. Modification or termination of trust; proceedings for approval or disapproval.

(a) In addition to the methods of termination prescribed by section 19-1304.11 through section 19-1304.14, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(b) A proceeding to approve or disapprove a proposed modification or termination under sections 19-1304.11 through 19-1304.16, or trust combination or division under section 19-1304.17, may be commenced by a trustee or beneficiary, and a proceeding to approve or disapprove a proposed modification or termination under section 19-1304.11 may be commenced by the settlor. The settlor of a charitable trust may maintain a proceeding to modify the trust under section 19-1304.13.

MD

§ 14.5-409. Termination of trusts; institution of proceedings.

(a) In addition to the methods of termination prescribed by §§ 14.5–410 through § 14.5–412 of this subtitle, a trust terminates to the extent:
(1) The trust is revoked or expires in accordance with the terms of the trust; or
[MISSING "NO PURPOSE OF THE TRUST REMAINS TO BE ACHIEVED"]
(2) The purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(b) A proceeding to approve or disapprove a proposed modification or termination under §§ 14.5–410 through § 14.5–414 of this subtitle, or combination or division of a trust under § 14.5–415 of this subtitle, may be commenced by a trustee or beneficiary [MISSING "[AND A PROCEEDING TO APPROVE . . . BY THE SETTLOR]. . . . THE SETTLOR OF A . . . MAINTAIN A PROCEEDING TO MODIFY THE TRUST UNDER (CODE)].

VA

§ 64.2-728. Modification or termination of trust; proceedings for approval or disapproval

A. In addition to the methods of termination prescribed by §§ 64.2-729 through 64.2-732, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
B. A proceeding to approve or disapprove a proposed modification or termination under §§ 64.2-729 through 64.2-734, or trust combination or division under § 64.2-735, may be commenced by a trustee or beneficiary [MISSING "AND A PROCEEDING TO APPROVE . . . MAY BE COMMENCED BY THE SETTLOR"]. The settlor of a charitable trust may maintain a proceeding to modify the trust under § 64.2-731.

DC §19-1304.11 permits modification or termination of a non-charitable trust upon the consent of the settlor and all beneficiaries, without the need for court approval, even if the modification or termination is inconsistent with a material purpose of the trust. The section also permits modification or termination of a trust upon the consent of all of the beneficiaries, but only if the court concludes that modification or termination of the trust is not inconsistent with any material purpose of the trust.
MD §14.5-410 permits modification or termination of a non-charitable trust upon the consent of the trustee (not the settlor) and all beneficiaries if the court concludes that modification or termination of the trust is not inconsistent with any material purpose of the trust. Accordingly, under Maryland law, court approval is required for all modifications and terminations of non-charitable irrevocable trusts.

UTC §411(c) is a bracketed provision that provides: A spendthrift provision in the terms of the trust is not presumed to constitute a material purpose of the trust. This provision is included in DC §19-1304.11(c). The corresponding provision in MD §14.5-410(b) is somewhat different; it provides that the existence of a spendthrift provision or similar protective language in the terms of the trust does not prevent a termination of a non-charitable irrevocable trust. This provision is omitted from VA §64.2-729.
VA §64.2-729 requires the court to order the modification or termination of a trust upon the consent of the settlor and all beneficiaries even if the modification or termination of the trust is inconsistent with a material purpose of the trust. A trust may be modified or terminated upon consent of all beneficiaries if the court concludes that the modification or termination if not inconsistent with a material purpose of the trust. Accordingly, under Virginia law, court approval is required for all modifications and terminations of non-charitable irrevocable trusts.

UTC §411(c) is a bracketed provision that provides: A spendthrift provision in the terms of the trust is not presumed to constitute a material purpose of the trust. This provision is included in DC §19-1304.11(c). The corresponding provision in MD §14.5-410(b) is somewhat different; it provides that the existence of a spendthrift provision or similar protective language in the terms of the trust does not prevent a termination of a non-charitable irrevocable trust. This provision is omitted from VA §64.2-729.

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UTC

§ 411. Modification or termination of noncharitable irrevocable trust by consent.

[(a) [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.] [If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the court shall approve the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust.] A settlor’s power to consent to a trust’s modification or termination may be exercised by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust; by the settlor’s [conservator] with the approval of the court supervising the [conservatorship] if an agent is not so authorized; or by 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. [This subsection does not apply to irrevocable trusts created before or to revocable trusts that become irrevocable before [the effective date of this [Code] [amendment].]]
(b) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the 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 not 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 the 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.

DC

§19-1304.11. Modification or termination of noncharitable irrevocable trust by consent

A

(a) 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. [MISSING ["IF, UPON PETITION, THE COURT FINDS . . . MATERIAL PURPOSE OF THE TRUST."]] A settlor's power to consent to a trust's modification or termination may be exercised by:
(1) An agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust;
(2) The settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or
(3) 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. [MISSING “[THIS SUBSECTION DOES NOT APPLY . . . THAT BECOME IRREVOCABLE BEFORE [THE EFFECTIVE DATE OF THIS (CODE).]]]
(b) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the 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 not presumed to constitute a material purpose of the trust.
(d) Upon termination of a trust under subsection (a) or (b) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries: [DC CODE INCLUDES COLON HERE BUT (e) FOLLOWS IMMEDIATELY; ASSUME GRAMMATICAL ERROR] (e) If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b) of this section, the modification or termination may be approved by the 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.

MD

§ 14.5-410. Modification or termination of trust.

A

[MISSING UTC[(a)]]
(a) (1) a noncharitable irrevocable trust may be terminated on consent of the trustee and all beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust.
(2) a noncharitable irrevocable trust may be modified on consent of the trustee and all beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
(b) the existence of a spendthrift provision or similar protective language in the terms of the trust does not prevent a termination of a trust under subsection (a)(1) of this section. [CHANGED/EXPANDED UTC(c)]
(c) on termination of a trust under subsection (a)(1) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.
(d) if not all beneficiaries consent to a proposed modification or termination of the trust under subsection (a) of this section, the modification or termination may be approved by the court if the court is satisfied that:
(1) if all beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the interests of a beneficiary that does not consent will be adequately protected.

VA

§64.2-729. Modification or termination of noncharitable irrevocable trust by consent

A

A. [MISSING "[A NONCHARITABLE IRREVOCABLE TRUST MAY BE MODIFIED . . . INCONSISTENT WITH A MATERIAL PURPOSE OF THE TRUST.]"]
If upon petition the court finds that the settlor and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the court shall enter an order approving the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's modification or termination may be exercised by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust; by the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or by 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. [MISSING “[THIS SUBSECTION DOES NOT APPLY . . . THAT BECOME IRREVOCABLE BEFORE [THE EFFECTIVE DATE OF THIS (CODE).]]]
B. A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
[MISSING UTC[(c)]]
C. Upon termination of a trust under subsection A or B, the trustee shall distribute the trust property as agreed by the beneficiaries.
D. 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 the 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.

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UTC

§ 412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively.

(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor’s probable intention.
(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust’s administration.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a man

DC

§ 19-1304.12. Modification or termination because of unanticipated circumstances or inability to administer trust effectively.

(a) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention.
(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

MD

§ 14.5-411. Modification of administrative or dispositive provisions or termination for unforeseen circumstances.

(a) (1) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust.
(2) To the extent practicable, the modification described in paragraph (1) of this subsection shall be made in accordance with the probable intention of the settlor.
(b) The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the administration of the trust.
(c) On termination of a trust under subsection (a) of this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust as ordered by the court.

VA

§ 64.2-730. Modification or termination because of unanticipated circumstances or inability to administer trust effectively

A. The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification shall be made in accordance with the settlor's probable intention.
B. The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
C. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

UTC §413 provides that a provision in the terms of a charitable trust that would result in distribution of the trust property to a non-charitable beneficiary prevails over the power of the court under subsection (a) to apply cy pres to modify or terminate the trust if, when the provision takes effect: (1) the trust property is to revert to the settlor and the settlor is still living; or (2) fewer than 21 years have elapsed since the date of the trust’s creation. This provision is omitted from DC §19-1304.13, but is contained in VA §64.2-731. The MTA has no statutory cy pres provision, although the cy pres doctrine is recognized under Maryland common law (see Gordon v. City of Baltimore, 258 Md. 682, 267 A.2d 98 (1970) and Fletcher v. Safe Deposit & Trust Co., 193 Md. 400, 67 A.2d 386 (1949)).
UTC §413 provides that a provision in the terms of a charitable trust that would result in distribution of the trust property to a non-charitable beneficiary prevails over the power of the court under subsection (a) to apply cy pres to modify or terminate the trust if, when the provision takes effect: (1) the trust property is to revert to the settlor and the settlor is still living; or (2) fewer than 21 years have elapsed since the date of the trust’s creation. This provision is omitted from DC §19-1304.13, but is contained in VA §64.2-731. The MTA has no statutory cy pres provision, although the cy pres doctrine is recognized under Maryland common law (see Gordon v. City of Baltimore, 258 Md. 682, 267 A.2d 98 (1970) and Fletcher v. Safe Deposit & Trust Co., 193 Md. 400, 67 A.2d 386 (1949)).

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UTC

§ 413. Cy pres.

(a) Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:
(1) the trust does not fail, in whole or in part;
(2) the trust property does not revert to the settlor or the settlor’s successors in interest; and
(3) the court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor’s charitable purposes.
(b) A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection (a) to apply cy pres to modify or terminate the trust only if, when the provision takes effect:
(1) the trust property is to revert to the settlor and the settlor is still living; or
(2) fewer than 21 years have elapsed since the date of the trust’s creation.

DC

§ 19-1304.13. Cy pres.

A

Except as otherwise provided in the terms of the trust [MISSING REFERENCE TO UTC(b)], if a particular charitable purpose is or becomes unlawful, impracticable, impossible to achieve, or wasteful:
(1) The trust does not fail, in whole or in part;
(2) The trust property does not revert to the settlor or the settlor's successors in interest; and
(3) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.
[MISSING UTC (b), (b)(1), and (b)(2)]

MD

Omitted.

A

VA

§ 64.2-731. Cy pres

A. Except as otherwise provided in subsection B, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:
1. The trust does not fail, in whole or in part;
2. The trust property does not revert to the settlor or the settlor's successors in interest; and
3. The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.
B. A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection A to apply cy pres to modify or terminate the trust only if, when the provision takes effect:
1. The trust property is to revert to the settlor and the settlor is still living; or
2. Fewer than 21 years have elapsed since the date of the trust's creation.

DC §19-1304.14 permits the termination of a trust with a value of less than $50,000. MD §14.5-412 and VA §64.2-732 permit the termination of a trust with a value of less than $100,000. MD §14.5-412 provides detailed procedures for terminating and distributing an uneconomical trust.
DC §19-1304.14 permits the termination of a trust with a value of less than $50,000. MD §14.5-412 and VA §64.2-732 permit the termination of a trust with a value of less than $100,000. MD §14.5-412 provides detailed procedures for terminating and distributing an uneconomical trust.

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UTC

§ 414. Modification or termination of uneconomic trust.

(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than [$50,000] may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
(b) 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.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(d) This section does not apply to an easement for conservation or preservation.

DC

§ 19-1304.14. Termination of uneconomic trust.

(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $ 50,000 may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
(b) 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.
(c) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(d) This section does not apply to an easement for conservation or preservation.

MD

§ 14.5-412. Termination without court order -- Procedure.

A

***Former MD E&T 14-107 re-enacted***
(a) (1) In this section the following words have the meanings indicated.
(2) “Life expectancy” means the life expectancy published from time to time in the life tables issued by the U.S. Department of Health and Human Services.
(3) “Net annual income” means the gross income of a trust estate during a fiscal year minus trust commissions and expenses attributable to income for that fiscal year.

(b) Subject to the provisions of this section, a trustee may terminate a trust without an order of court if the fair market value of the trust as of the last anniversary date of the trust is $100,000 [SUBSTITUTED FOR $50,000] or less [MISSING "IF THE TRUSTEE CONCLUDES . . . JUSTIFY COST OF ADMINISTATION"].
[MISSING UTC(b)]

(c) (1) (i) A trustee proposing to terminate a trust under this section shall send notice of the proposed termination to each cotrustee and each qualified beneficiary of the trust at the last known address of the cotrustee or qualified beneficiary.
(ii) The notice described in subparagraph (i) of this paragraph shall be:
1. Personally delivered; or
2. Mailed by certified mail, postage prepaid, return receipt requested.
(2) The notice required under paragraph (1) of this subsection shall contain:
(i) The name of the trust;
(ii) The name of the person who created the trust;
(iii) The date on which the trust was established;
(iv) The name and address of the trustee seeking to terminate the trust;
(v) The name of any cotrustee;
(vi) A statement that the effective date of the termination shall be at least 90 days after the date on which notice under paragraph (1) of this subsection has been received by each cotrustee and each qualified beneficiary;
(vii) A statement of the reasons for termination of the trust;
(viii) The approximate amount and the manner of calculation of each distribution of the trust estate; and
(ix) A statement of the right to object and the procedures to follow under subsection (d) of this section.
(d) (1) A person entitled to notice under subsection (c) of this section that objects to the termination of a trust shall send written objection to the termination.
(2) The written objection described in paragraph (1) of this subsection shall be personally delivered or mailed by certified mail, postage prepaid, return receipt requested, within 60 days after the date on which notice that is sent under subsection (c)(1) of this section is received by the objecting party, to the trustee proposing to terminate the trust at the address in the notice.
(e) (1) If no qualified beneficiary or cotrustee delivers a timely objection in accordance with the provisions of subsection (d) of this section, the trust shall be terminated and the trust estate shall be distributed in accordance with the provisions of subsection (f) of this section.
(2) If a qualified beneficiary or cotrustee delivers a timely written objection in accordance with the provisions of subsection (d) of this section, the trust may not be terminated unless the objection is withdrawn in writing by the objecting party within 90 days after receipt of the notice by the objecting party.

(f) (1) A trust estate that is terminated under this section shall be distributed in any manner [MISSING: "CONSISTENT WITH THE PURPOSES OF THE TRUST"] unanimously agreed on by all qualified beneficiaries.
(2) (i) If the qualified beneficiaries do not unanimously agree to a manner of distribution, the distribution shall be made in accordance with the provisions of this paragraph.
(ii) A qualified beneficiary that has a present interest in the trust estate shall receive an amount equal to the present value of an annuity equal to the proportionate share of the qualified beneficiary of the average net annual income of the trust as of the last three anniversary dates of the trust for a term equal to the life expectancy of the qualified beneficiary, at the interest rate for valuing vested benefits provided by the pension benefit guaranty corporation for the month immediately preceding the date on which the notice under subsection (c)(1) of this section is sent.
(iii) The amount of the trust estate remaining after distribution to qualified beneficiaries having a present interest in the trust estate shall be distributed to qualified beneficiaries having a future interest in the trust estate in whatever proportions are provided for under the terms of the governing instrument under which the trust was created.
(g) The existence of spendthrift or similar protective language in the governing instrument under which the trust was created may not prevent termination under this section.
(h) All expenses incurred by the trustee incident to the termination of a trust under this section shall be paid by the trust estate.
(i) A distribution to a minor qualified beneficiary shall be made to the custodian of the minor under the Maryland uniform Transfers to Minors Act.
(j) This section may not be construed to limit the right of a trustee to terminate a trust in accordance with applicable provisions of the governing instrument under which the trust was created.
(k) A trust may be terminated under this section if:
(1) The trustee has determined that termination of the trust is in the best interests of the qualified beneficiaries; and
(2) The governing instrument does not expressly prohibit termination of the trust regardless of the size of the trust.
(l) A trust may not be terminated under this section if:
(1) The provisions of the governing instrument make the trust eligible to qualify for the marital deduction for United States estate tax or for United States gift tax purposes under the Internal Revenue Code of 1986, as amended, unless all qualified beneficiaries agree that all of the trust estate shall be distributed to the spouse of the creator of the trust; or
(2) The provisions of the governing instrument make the trust qualify, in whole or in part, for a charitable deduction for United States estate tax, United States gift tax, or United States income tax purposes under the Internal Revenue Code of 1986, as amended, unless all qualified beneficiaries agree that all of the trust estate shall be distributed to one or more qualified beneficiaries that qualify for the charitable deduction under the Internal Revenue Code of 1986, as amended.
[MISSING UTC(d)]

VA

§ 64.2-732. Modification or termination of uneconomic trust

A

A. After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than $ 100,000 [SUBSTITUTED FOR $ 50,000] may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.
B. 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.
C. Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
D. This section does not apply to an easement for conservation or preservation.

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UTC

§ 415. Reformation to correct mistakes.

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor’s intention if it is proved by clear and convincing evidence what the settlor’s intention was and that the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.

DC

§ 19-1304.15. Reformation to correct mistakes.

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.

MD

§ 14.5-413. Reforming terms of trust.

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the intention of the settlor if it is proved by clear and convincing evidence that both the intent of the settlor and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.

VA

§ 64.2-733. Reformation to correct mistakes

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.

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UTC

§ 416. Modification to achieve settlor’s tax objectives.

To achieve the settlor’s tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor’s probable intention. The court may provide that the modification has retroactive effect.

DC

§ 19-1304.16. Modification to achieve settlor's tax objectives.

To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.

MD

§ 14.5-414. Modification of terms for purposes of taxes.

(a) To achieve the tax objectives of the settlor, the court may modify the terms of a trust in a manner that is not contrary to the probable intention of the settlor.
(b) The court may provide that the modification described in subsection (a) of this section has retroactive effect.

VA

§ 64.2-734. Modification to achieve settlor's tax objectives

To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.

MD §14.5-415 requires judicial intervention to combine or divide trusts unless the trust instrument(s) expressly provides that the trustee can divide or consolidate trusts. UTC §417 and the corresponding DC UTC and VA UTC provisions require no judicial intervention for consolidation or division of trusts.

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UTC

§ 417. Combination and division of trusts.

After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust.

DC

§ 19-1304.17. Combination and division of trusts.

After notice to the qualified beneficiaries, a trustee may combine 2 or more trusts into a single trust or divide a trust into 2 or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust.

MD

§ 14.5-415. Division or consolidation of trust.

A

***Former MD E&T 14-106 re-enacted***
(a) (1) Subject to the provisions of paragraph (2) of this subsection, on petition by a trustee, personal representative, beneficiary, or party in interest, after notice as the court may direct to the trustees, personal representatives, beneficiaries, and parties in interest, and for good cause shown, a court may:
(i) Divide a trust into two or more separate trusts; or
(ii) Consolidate two or more trusts into a single trust.
(2) A court may divide a trust or consolidate trusts:
(i) On terms and conditions as the court considers appropriate; and
(ii) If the court is satisfied that a division of a trust or consolidation of trusts will not defeat or materially impair:
1. The accomplishment of trust purposes; or
2. The interests of the beneficiaries.
(3) a court may pass orders that the court considers proper or necessary to protect the interests of:
(i) A trustee;
(ii) A personal representative;
(iii) A beneficiary; or
(iv) A party in interest.

(b) [MISSING "AFTER NOTICE TO THE QUALIFIED BENEFICIARIES"] Subsection (a) of this section may not be construed to limit the right of a trustee or personal representative to divide a trust or consolidate trusts, without an order of a court, in accordance with the applicable provisions of the governing instrument [MISSING "IF THE RESULT DOES NOT . . . THE PURPOSES OF THE TRUST].
(c)(1) Subject to the provisions of paragraphs (2) and (3) of this subsection, if a trust instrument does not provide for the consolidation or division of a trust, a trustee may, without an order of a court:
(i) Divide a trust into two or more separate trusts; or
(ii) Consolidate two or more trusts into a single trust.
(2) A trustee may not divide a trust into two or more separate trusts or consolidate two or more trusts into a single trust if a beneficiary objects in writing within 30 days after the trustee provided notice under § 14.5-109 of this title.
(3) A trustee may divide a trust or consolidate trusts:
(i) On terms and conditions as the trustee considers appropriate;
(ii) If the division of a trust or consolidation of a trust grants beneficial interests to the beneficiaries that, in the aggregate, are substantially similar to the interests the beneficiaries had before the division of the trust or consolidation of the trust; and
(iii) If the trustee is satisfied that a division of a trust or consolidation of trusts will not defeat or materially impair:
1. The accomplishment of trust purposes; or
2. The interests of the beneficiaries.

VA

§ 64.2-735. Combination and division of trusts

After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not materially impair the rights of any beneficiary or adversely affect achievement of the purposes of the trust.

The UTC has no provision regarding how trust property is to be titled. DC §19-1304.18 provides that property that is transferred to a trust may be titled in the name of (1) the trust by reference to the instrument creating the trust, (2) the current trustee as the trustee of such trust or (3) “the trustee” as the trustee of such trust. The purpose of this provision is to avoid title problems, especially with regard to real property.
The UTC has no provision regarding how trust property is to be titled. DC §19-1304.18 provides that property that is transferred to a trust may be titled in the name of (1) the trust by reference to the instrument creating the trust, (2) the current trustee as the trustee of such trust or (3) “the trustee” as the trustee of such trust. The purpose of this provision is to avoid title problems, especially with regard to real property.

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UTC

No equivalent.

A

DC

§ 19-1304.18. Title of trust property.

A

Real or personal property that is transferred to a trust may be titled in the name of:
(1) The trust by reference to the instrument creating the trust;
(2) The current trustee as the trustee of such trust; or
(3) "The trustee" as the trustee of such trust.

MD

No equivalent.

VA

No equivalent.

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UTC

No equivalent.

DC

No equivalent.

MD

No equivalent.

VA

§ 64.2-736. Amendment of trust where gift, grant, or will establishes private foundation or constitutes a charitable trust or a split-interest trust

When any such gift, grant, devise, or bequest establishes a private foundation, as defined in § 509 of the Internal Revenue Code, or constitutes a charitable trust, as described in § 4947(a)(1) of the Internal Revenue Code, or a split-interest trust, as described in § 4947(a)(2) of the Internal Revenue Code, the trustee or trustees of such trust, with the concurrence of the creator of the trust, if then living and able to give such consent, and the Attorney General, may, without resort to any court, unless such amendment is inconsistent with an express provision of such trust's governing instrument, amend the terms of such trust to bring such trust into or continue such trust in conformity with requirements for exemption of such trust, or any interest therein, from federal taxes. When such gift, grant, or will is recorded, a copy of such amendment shall be similarly recorded.

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UTC

No equivalent.

DC

No equivalent.

MD

No equivalent.

VA

§ 64.2-737. Distribution of income of trust that is a private foundation or a charitable trust; prohibitions as to such private foundation

Every trust that is a private foundation, as defined in § 509 of the Internal Revenue Code, or a charitable trust, as described in § 4947(a)(1) of the Internal Revenue Code, unless its governing instrument expressly includes specific provisions to the contrary, shall distribute its income, and if necessary principal, for each taxable year at such time and in such manner as not to subject such trust to tax under § 4942 of the Internal Revenue Code, and such trust shall not engage in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code, retain any excess business holdings, as defined in § 4943(c) of the Internal Revenue Code, make any investments in such manner as to give rise to liability for the tax imposed by § 4944 of the Internal Revenue Code, or make any taxable expenditures, as defined in § 4945(d) of the Internal Revenue Code.

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UTC

No equivalent.

DC

No equivalent.

MD

No equivalent.

VA

§ 64.2-738. Prohibitions as to trust that is deemed a split-interest trust

Every trust that is a split-interest trust, as described in § 4947(a)(2) of the Internal Revenue Code, unless its governing instrument expressly includes specific provisions to the contrary, shall not engage in any act of self-dealing, as defined in § 4941(d) of the Internal Revenue Code, retain any excess business holdings, as defined in § 4943(c) of the Internal Revenue Code, that would give rise to liability for the tax imposed by § 4943(a) of the Internal Revenue Code, make any investments in such manner as to give rise to liability for the tax imposed by § 4944 of the Internal Revenue Code, or make any taxable expenditures, as defined in § 4945(d) of the Internal Revenue Code. This section shall not apply with respect to:
1. Any amounts payable under the terms of such trust to income beneficiaries, unless a deduction was allowed under § 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)(B) of the Internal Revenue Code;
2. Any amounts in trust other than amounts for which a deduction was allowed under § 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the Internal Revenue Code, if such other amounts are segregated from amounts for which no deduction was allowable; or
3. Any amounts transferred in trust before May 27, 1969.

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UTC

No equivalent.

DC

No equivalent.

MD

No equivalent.

VA

§ 64.2-739. Application of §§ 642-737 and 642-738

Sections 64.2-737 and 64.2-738 shall apply to any private foundation, charitable trust, or split-interest trust defined or described therein and established after December 31, 1969; and to any such private foundation, charitable trust, or split-interest trust established before January 1, 1970, only for its taxable years beginning on and after January 1, 1972, unless the exceptions provided in § 508(e)(2)(A) or (B) of the Internal Revenue Code shall apply or unless the trustee or trustees shall elect that this section shall not apply by filing written notice of such election with the Attorney General, and with the clerk of the court in which its governing instrument may be recorded, on or before December 31, 1971.

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UTC

No equivalent.

DC

No equivalent.

MD

No equivalent.

VA

§ 64.2-740. Interpretation of references to Internal Revenue Code in §§ 642-736 through 642-739

Each reference to a section of the Internal Revenue Code made in §§ 64.2-736 through 64.2-739 shall include future amendments to such Code sections and corresponding provisions of future internal revenue laws.

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UTC

No equivalent.

DC

No equivalent.

MD

No equivalent.

VA

§ 64.2-741. Powers of courts not impaired by §§ 642-736 through 642-740; severability

Nothing in §§ 64.2-736 through 64.2-740 shall impair the power of a court of competent jurisdiction with respect to any such foundation or trust, and the invalidity of any one or more of such sections shall not be deemed to affect the validity of the other sections.

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