Relating to trusts, including irrevocable trusts, trust petitions, and trust proceedings

This bill relates to trusts, including irrevocable trust provisions, petitions, and proceedings. The bill provides that a spendthrift provision may help implement a material purpose of a trust. The bill provides that spendthrift provisions, or provisions giving the trustee discretion to distribute income or principal to a beneficiary or among beneficiaries, shall be enforceable against beneficiaries and third parties that (1) try to force the trustee to do something against the provisions of the trust or (2) try to gain access to the trust assets. A spendthrift provision, or a provision giving the trustee discretion to distribute income or principal to a beneficiary or among beneficiaries, shall not create a presumption that the settlor would not want the trust modified or terminated if doing so would be in the best interests of the beneficiaries and all the beneficiaries consent to the modification or termination of the trust. The bill allows an interested party, in addition to a trustee or beneficiary of a trust, to petition the court about the internal affairs of the trust or to determine the trust. The bill also expands the scope of the proceedings to include the following: (1) to settle accounts and pass upon the acts of the trust director or trust protector, (2) to instruct the trust director or trust protector, (3) to grant or modify powers of the trust director or trust protector, (4) fix the compensation of the trust director or trust protector, (5) to appoint or remove the trust director or trust protector, and (6) to accept the resignation of the trust director or trust protector.