Agreement of the Beneficiaries

Non-Judicial Settlement Agreements 

Trust Purposes

14-10404. Trust purposes

A trust may be created only to the extent that 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.

 

Court Modification with Consent

ARS 14-10410 provides that a proceeding to modify a non-charitable trust may be commmenced by a trustee or a beneficiary.

 

ARS 14-10411 provides for termination or modification upon consent of the beneficiaries:

 

Termination - if all beneficiaries consent and continuation of the trust is not necessary to achieve any material purpose of the trust.

 

Modification - if all beneficiaries consent and modification is not inconsistent with a material purpose of the trust.

 

Court can approve modification if fewer than all beneficiaries consent to it if it finds that the trust could be modified or terminated under this section AND that the interest of any beneficiary who does not consent will be adequately protected.

Court Modification w/o Consent

ARS 14-10412 provides that the Court can modify a 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.

 

ARS 14-10413 provides for modification of charitable trusts applying the cy pres doctrine.