130.210. [2005 c.348 �30; 2009 c.275 �10; 2013 c.529 �4] ����� 130.200 UTC 411. Modification or termination of irrevocable trust by consent. (1) An irrevocable trust may be modified or terminated

130.210. [2005 c.348 �30; 2009 c.275 �10; 2013 c.529 �4]

����� 130.200 UTC 411. Modification or termination of irrevocable trust by consent. (1) An irrevocable trust may be modified or terminated with approval of the court upon consent of the settlor and all beneficiaries who are not remote interest beneficiaries, even if the modification or termination is inconsistent with a material purpose of the trust. The Attorney General must consent to any modification or termination of a charitable trust. A settlor�s power to consent to a trust�s modification or termination may be exercised by:

����� (a) An agent or attorney-in-fact under a power of attorney only to the extent expressly authorized by the terms of the trust or the power of attorney;

����� (b) The settlor�s conservator with the approval of the court supervising the conservatorship if an agent or attorney-in-fact is not authorized by the terms of the trust or a power of attorney; or

����� (c) The settlor�s guardian with the approval of the court supervising the guardianship if an agent or attorney-in-fact is not authorized by the terms of the trust or a power of attorney and a conservator has not been appointed.

����� (2) An irrevocable trust may be terminated upon consent of all beneficiaries who are not remote interest beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. An irrevocable trust may be modified upon consent of all beneficiaries who are not remote interest beneficiaries if the court concludes that the modification is not inconsistent with a material purpose of the trust. The Attorney General must consent to any modification or termination of a charitable trust.

����� (3) For the purposes of subsections (1) and (2) of this section, a spendthrift provision in the terms of the trust is rebuttably presumed to constitute a material purpose of the trust.

����� (4) Upon termination of a trust under subsection (1) or (2) of this section, the trustee shall distribute the trust property as agreed to by the beneficiaries and, in the case of a charitable trust requiring the Attorney General�s consent, as agreed to by the Attorney General.

����� (5) A proposed modification or termination of the trust under subsection (1) or (2) of this section may be approved by the court without the consent of all beneficiaries who are not remote interest beneficiaries if the court finds that:

����� (a) If all beneficiaries who are not remote interest beneficiaries had consented, the trust could have been modified or terminated under this section; and

����� (b) The interests of any beneficiary who does not consent will be adequately protected.

����� (6) A binding nonjudicial settlement agreement relating to modification or termination of a trust may be entered into by all interested persons, as defined in ORS 130.045. [2005 c.348 �31; 2007 c.129 �21; 2009 c.275 �11; 2013 c.529 �5]

����� 130.205 UTC 412. Modifications or termination because of unanticipated circumstances or inability to administer trust effectively. (1) The court may modify the administrative or dispositive terms of a trust or terminate the trust if modification or termination will further the purposes of the trust and the modification or termination is requested by reason of circumstances not anticipated by the settlor. To the extent practicable, the modification must be made in accordance with the settlor�s probable intention.

����� (2) 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 would impair the trust�s administration.

����� (3) A trustee may terminate a trust if:

����� (a) Termination is appropriate by reason of circumstances not anticipated by the settlor;

����� (b) Termination will not be inconsistent with the material purposes of the trust;

����� (c) All qualified beneficiaries have consented to the termination;

����� (d) The trustee is not a beneficiary of the trust and has no duty of support for any beneficiary of the trust; and

����� (e) In the case of a charitable trust, the Attorney General has consented to the termination.

����� (4) 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. [2005 c.348 �32; 2007 c.515 �1; 2009 c.275 �12]

����� 130.210 UTC 413. Cy pres. (1) Except as otherwise provided in subsection (2) of this section, if a particular charitable purpose of a trust becomes unlawful, impracticable, impossible to achieve or wasteful:

����� (a) The trust does not fail, in whole or in part;

����� (b) The trust property does not revert to the settlor or the settlor�s successors in interest; and

����� (c) 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.

����� (2) If a provision in the terms of a charitable trust would result in distribution of the trust property to a noncharitable beneficiary, a court may not apply cy pres to modify or terminate the trust under subsection (1)(c) of this section if, when the provision takes effect:

����� (a) The trust property is to revert to the settlor and the settlor is still living; or

����� (b) Fewer than 50 years have elapsed since the date of the trust�s creation. [2005 c.348 �33; 2009 c.275 �13]

����� 130.215 UTC 414. Modification or termination of uneconomic trust. (1) After notice to the qualified beneficiaries, a trustee may terminate a trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration. A trustee may not terminate a trust under this section if the trustee is a qualified beneficiary of the trust or has a duty of support for a qualified beneficiary of the trust.

����� (2) The court may modify or terminate a trust, or remove the trustee and appoint a different trustee, if the court finds that the value of the trust property is insufficient to justify the cost of administration.

����� (3) 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.

����� (4) This section does not apply to an easement for conservation or preservation. [2005 c.348 �34; 2013 c.529 �6]

����� 130.220 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 the person requesting reformation proves 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. [2005 c.348 �35]

����� 130.225 UTC 416. Modification to achieve settlor�s tax objectives. The court may modify the terms of a trust to achieve the settlor�s tax objectives if the modification is not contrary to the settlor�s probable intention. The court may provide that the modification has retroactive effect. [2005 c.348 �36]

����� 130.230 UTC 417. Combination and division of trusts. (1) Subject to subsection (2) of this section, a trustee may:

����� (a) Combine two or more trusts into a single trust by taking into account the pro rata economic interests of each beneficiary of each trust; or

����� (b) Divide a trust into two or more separate trusts.

����� (2) In taking any of the actions under subsection (1) of this section, the trustee shall:

����� (a) Provide notice to all qualified beneficiaries in accordance with ORS 130.733;

����� (b) Consider the individual rights of each beneficiary;

����� (c) Exercise due care and prudent judgment;

����� (d) Consider the terms of the trust instrument and amendments, if any, as well as all applicable statutory law; and

����� (e) Take the action only if the result does not materially impair the rights of any beneficiary or adversely affect achievement of the intent of the trustor. [2005 c.348 �37; 2015 c.126 �2]

����� Note: Section 5, chapter 126, Oregon Laws 2015, provides:

����� Sec. 5. The amendments to ORS 130.230,