reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 14A - Trusts › Chapter 1 - General Provisions and Definitions › § 110. Others treated as qualified beneficiaries

§ 110. Others treated as qualified beneficiaries
(a) Whenever notice to qualified beneficiaries of a trust is required under this title, the trustee shall also give notice to any other beneficiary who has sent the trustee a request for notice.
(b)(1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this title if the charitable organization, on the date the charitable organization’s qualification is being determined, is:
(A) a “first tier” beneficiary as a distributee or permissible distributee of trust income or principal;
(B) a “second tier” beneficiary who would be a first tier beneficiary of trust income or principal if the interests of the distributees described in subdivision (1)(A) of this subsection (b) terminated on that date without causing the trust to terminate; or
(C) a “final beneficiary” who would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.
(2) Notwithstanding subdivision (1) of this subsection (b), a second tier beneficiary or a final beneficiary whose interest in the trust is created by the exercise of a power of appointment, and the exercise of the power of appointment is not irrevocable, shall not have the rights of a “qualified beneficiary.”
(c) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in section 408 or 409 of this title has the rights of a qualified beneficiary under this title.
(d) The Attorney General of this State has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this State. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 1 - General Provisions and Definitions › § 111. Nonjudicial settlement agreements

§ 111. Nonjudicial settlement agreements
(a) For purposes of this section, “interested persons” means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the Probate Division of the Superior Court.
(b) Except as otherwise provided in subsection (c) of this section, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust.
(c) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the Probate Division of the Superior Court under this title or other applicable law.
(d) Matters that may be resolved by a nonjudicial settlement agreement include:
(1) the interpretation or construction of the terms of the trust;
(2) the approval of a trustee’s report or accounting;
(3) direction to a trustee to perform or to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;
(4) the resignation or appointment of a trustee and the determination of a trustee’s compensation;
(5) transfer of a trust’s principal place of administration; and
(6) liability of a trustee for an action relating to the trust.
(e) Any interested person may request the Probate Division of the Superior Court to approve a nonjudicial settlement agreement to determine whether the representation as provided in chapter 3 of this title was adequate, and to determine whether the agreement contains terms and conditions the Probate Division of the Superior Court could have properly approved. (Added 2009, No. 20, § 1; amended 2009, No. 92 (Adj. Sess.), § 5; 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 1 - General Provisions and Definitions › § 112. Rules of construction

§ 112. Rules of construction
The rules of construction that apply in this State to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 2 - Judicial Proceedings › § 201. Role of court in administration of trust

§ 201. Role of court in administration of trust
(a) The Probate Division of the Superior Court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law.
(b) A trust is not subject to continuing judicial supervision unless ordered by the Probate Division of the Superior Court.
(c) A judicial proceeding involving a trust may relate to any matter involving the trust’s administration, including a request for instructions and an action to declare rights.
(d) Upon motion of any party in a probate action concerning the administration of a trust under the provisions of this title, the presiding probate judge shall permit an appeal to be taken to the Superior Court from any interlocutory order or ruling if the judge finds that the order or ruling involves a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal may materially advance the termination of the litigation. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 2 - Judicial Proceedings › § 202. Jurisdiction over trustee and beneficiary

§ 202. Jurisdiction over trustee and beneficiary
(a) By accepting the trusteeship of a trust having its principal place of administration in this State or by moving the principal place of administration to this State, the trustee submits personally to the jurisdiction of the courts of this State regarding any matter involving the trust.
(b) With respect to their interests in the trust, the beneficiaries of a trust having its principal place of administration in this State are subject to the jurisdiction of the courts of this State regarding any matter involving the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this State regarding any matter involving the trust.
(c) This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary, or other person receiving property from the trust. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 2 - Judicial Proceedings › § 203. Subject matter jurisdiction

§ 203. Subject matter jurisdiction
(a) The Probate Division of the Superior Court has exclusive jurisdiction of proceedings in this State brought by a trustee or beneficiary concerning the administration of a trust.
(b) The Probate Division of the Superior Court has concurrent jurisdiction with other courts of this State of other proceedings involving a trust. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 2 - Judicial Proceedings › § 204. Venue

§ 204. Venue
(a) Except as otherwise provided in subsection (b) of this section, venue for a judicial proceeding involving a trust is in the probate district of this State in which the trust’s principal place of administration is or will be located and, if the trust is created by will and the estate is not yet closed, in the probate district in which the decedent’s estate is being administered.
(b) If a trust has no trustee, venue for a judicial proceeding for the appointment of a trustee is in a probate district of this State in which a beneficiary resides, in a probate district in which any trust property is located, and if the trust is created by will, in the probate district in which the decedent’s estate was or is being administered. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 2 - Judicial Proceedings › § 205. Matters in equity

§ 205. Matters in equity
The Probate Division of the Superior Court may hear and determine in equity all matters relating to trusts in this title. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 3 - Representation › § 301. Representation; basic effect

§ 301. Representation; basic effect
(a) Notice to a person who may represent and bind another person under this chapter has the same effect as if notice were given directly to the other person.
(b) The consent of a person who may represent and bind another person under this chapter is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective.
(c) Except as otherwise provided in sections 411 and 602 of this title, a person who under this chapter may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor’s behalf. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 3 - Representation › § 302. Representation by holder of general testamentary power of appointment

§ 302. Representation by holder of general testamentary power of appointment
To the extent there is no conflict of interest between the holder of a general testamentary power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 3 - Representation › § 303. Representation by fiduciaries and parents

§ 303. Representation by fiduciaries and parents
To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute:
(1) a guardian of the property may represent and bind the estate that the guardian controls;
(2) a guardian of the person may represent and bind the ward if a guardian of the ward’s estate has not been appointed;
(3) an agent having authority to act with respect to the particular question or dispute may represent and bind the principal;
(4) a trustee may represent and bind the beneficiaries of the trust;
(5) a personal representative of a decedent’s estate may represent and bind persons interested in the estate; and
(6) a parent may represent and bind the parent’s minor or unborn child if a guardian for the child has not been appointed. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 3 - Representation › § 304. Representation by person having substantially identical interest

§ 304. Representation by person having substantially identical interest
Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest with respect to the particular question between the representative and the person represented. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 3 - Representation › § 305. Appointment of representative

§ 305. Appointment of representative
(a) If the Probate Division of the Superior Court determines that an interest is not represented under this chapter, or that the otherwise available representation might be inadequate, the Probate Division of the Superior Court may appoint a representative to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown. A representative may be appointed to represent several persons or interests.
(b) A representative may act on behalf of the individual represented with respect to any matter arising under this title, whether or not a judicial proceeding concerning the trust is pending.
(c) In making decisions, a representative may consider general benefit accruing to the living members of the individual’s family. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 401. Methods of creating trust

§ 401. Methods of creating trust
A trust may be created:
(1) by transfer of property to another person as trustee or to the trust in the trust’s name during the settlor’s lifetime or by will or other disposition taking effect upon the settlor’s death;
(2) by declaration by the owner of property that the owner holds identifiable property as trustee;
(3) by exercise of a power of appointment in favor of a trustee;
(4) pursuant to a statute or judgment or decree that requires property to be administered in the manner of an express trust; or
(5) by an agent or attorney-in-fact under a power of attorney that expressly grants authority to create the trust;
. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011; 2023, No. 60, § 3, eff. July 1, 2023.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 402. Requirements for creation

§ 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 of this title; or
(C) a trust for a noncharitable purpose, as provided in section 409 of this title;
(4) the trustee has duties to perform; and
(5) the same person is not the sole trustee and sole beneficiary of all beneficial interests.
(b) A settlor is deemed to have the capacity to create a trust if:
(1) the trust is created by an agent of the settlor under a power of attorney as described in subdivision 401(5) of this title; and
(2) the settlor had capacity to create a trust at the time the power of attorney was executed.
(c) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(d) 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. (Added 2009, No. 20, § 1; amended 2009, No. 92 (Adj. Sess.), § 6.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 403. Trusts created in other jurisdictions

§ 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 citizen;
(2) a trustee was domiciled or had a place of business; or
(3) any trust property was located. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 404. Trust purposes

§ 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. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 405. Charitable purposes; enforcement

§ 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, scientific, literary, benevolent, 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 or if the designated charitable purpose cannot be completed or no longer exists, the trustee, if authorized by the terms of the trust, or if not, the Probate Division of the Superior 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, the Attorney General, a cotrustee, or a person with a special interest in the charitable trust may maintain a proceeding to enforce the trust. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 406. Creation of trust induced by fraud, duress, or undue influence

§ 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. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 407. Evidence of oral trust

§ 407. Evidence of oral trust
Except as required by a statute other than this title, 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. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 408. Trust for care of animal

§ 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 Probate Division of the Superior Court. A person having an interest in the welfare of the animal may request the Probate Division of the Superior 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 Probate Division of the Superior 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. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 409. Noncharitable trust without ascertainable beneficiary

§ 409. Noncharitable trust without ascertainable beneficiary
Except as otherwise provided in section 408 of this title 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 Probate Division of the Superior Court.
(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the Probate Division of the Superior 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. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 410. Modification or termination of trust; proceedings for approval or disapproval

§ 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 of this title, 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 of this title, or trust combination or division under section 417 of this title, may be commenced by a trustee or beneficiary, and a proceeding to approve or disapprove a proposed modification or termination under section 411 of this title may be commenced by the settlor. The settlor of a charitable trust may maintain a proceeding to modify the trust under section 413 of this title. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 411. Modification or termination of noncharitable irrevocable trust by consent

§ 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 Probate Division of the Superior Court finds that the settlor and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the Probate Division of the Superior 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 guardian of the property with the approval of the Probate Division of the Superior Court supervising the guardianship if an agent is not so authorized; or by the settlor’s guardian of the person with the approval of the Probate Division of the Superior Court supervising the guardianship if an agent is not so authorized and a guardian of the property has not been appointed.
(b) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the Probate Division of the Superior 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 Probate Division of the Superior 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.
(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 Probate Division of the Superior Court if the Probate Division of the Superior 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. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively

§ 412. Modification or termination because of unanticipated circumstances or inability to administer trust effectively
(a) The Probate Division of the Superior 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 Probate Division of the Superior 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 as directed by the Probate Division of the Superior Court or otherwise in a manner consistent with the purposes of the trust. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 413. Cy pres

§ 413. Cy pres
(a) Except as otherwise provided in subsection (b) of this section, 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 Probate Division of the Superior Court, on motion of any trustee, or any interested person, or the Attorney General, 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 Probate Division of the Superior Court under subsection (a) of this section 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. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 414. Modification or termination of uneconomic trust

§ 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 $100,000.00 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 Probate Division of the Superior 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 as directed by the Probate Division of the Superior Court or otherwise in a manner consistent with the purposes of the trust.
(d) This section does not apply to an easement for conservation or preservation. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 415. Reformation to correct mistakes

§ 415. Reformation to correct mistakes
The Probate Division of the Superior 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. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 416. Modification to achieve settlor’s tax objectives

§ 416. Modification to achieve settlor’s tax objectives
The Probate Division of the Superior 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 Probate Division of the Superior Court may provide that the modification has retroactive effect. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 417. Combination and division of trusts

§ 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. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 4 - Creation, Validity, Modification, and Termination of Trust › § 418. Intentional and unlawful killing; termination of interest in trust

§ 418. Intentional and unlawful killing; termination of interest in trust
(a) A person who commits an intentional and unlawful killing shall forfeit an interest in a trust:
(1) to the extent the trust was funded by the victim of the intentional and unlawful killing or would be funded by the victim’s estate;
(2) to the extent the person’s interest in the trust is augmented or advanced by the termination of the victim’s interest in the trust as the result of the person’s intentional and unlawful killing of the victim, and the interest is attributable to funding by someone other than the person or the victim of the intentional and unlawful killing;
(3) if the interest was created as the result of an exercise of a power of appointment held by the victim.
(b) An interest in a trust that is forfeited under subsection (a) of this section shall be administered and distributed in accordance with the terms of the trust as if the person whose interest is forfeited died on the date of the intentional and unlawful killing.
(c) A person who commits an intentional and unlawful killing shall be removed as trustee of a trust:
(1) that was funded by the victim of the intentional and unlawful killing or would be funded by the victim’s estate;
(2) in which the person’s interest in the trust is augmented or advanced by the termination of the victim’s interest in the trust as the result of the person’s intentional and unlawful killing of the victim, and the interest is attributable to funding by someone other than the person or the victim of the intentional and unlawful killing.
(d) For purposes of this section, the record of a conviction of a person for an intentional and unlawful killing of another shall be conclusive evidence that the person committed an intentional and unlawful killing of the other person.
(e) In the absence of a final judgment of conviction, a beneficiary or trustee of a trust may petition the Probate Division of the Superior Court for a determination, or the court may on its own initiative determine, that the interest of a person who commits an intentional and unlawful killing has been forfeited under subsection (a) of this section, or that a person should be removed as trustee under subsection (c) of this section.
(f) This section shall apply to any interest in a trust that is or will be distributed on or after January 1, 2009. (Added 2009, No. 55, § 9; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 501. Rights of beneficiary’s creditor or assignee

§ 501. Rights of beneficiary’s creditor or assignee
To the extent a beneficiary’s interest is not protected by a spendthrift provision, the Probate Division of the Superior Court may authorize a creditor or assignee of the beneficiary to reach the beneficiary’s interest by attachment of present or future distributions to or for the benefit of the beneficiary or other means. The Probate Division of the Superior Court may limit the award to such relief as is appropriate under the circumstances. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 502. Spendthrift provision

§ 502. Spendthrift provision
(a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary’s interest.
(b) A term of a trust providing that the interest of a beneficiary is held subject to a “spendthrift trust,” or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary’s interest.
(c) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this chapter, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 503. Exceptions to spendthrift provision

§ 503. Exceptions to spendthrift provision
(a) In this section, “child” includes any person for whom an order or judgment for child support has been entered in this or another state.
(b) A spendthrift provision is unenforceable against:
(1) a beneficiary’s child who has a judgment or court order against the beneficiary for support or maintenance;
(2) a judgment creditor who has provided services for the protection of a beneficiary’s interest in the trust; and
(3) a claim of this State or the United States to the extent a statute of this State or federal law so provides.
(c) A claimant against which a spendthrift provision cannot be enforced may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary. The court may limit the award to such relief as is appropriate under the circumstances. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 504. Discretionary trusts; effect of standard

§ 504. Discretionary trusts; effect of standard
(a) In this section, “child” includes any person for whom an order or judgment for child support has been entered in this or another state.
(b) Except as otherwise provided in subsection (c) of this section, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee’s discretion, even if:
(1) the discretion is expressed in the form of a standard of distribution; or
(2) the trustee has abused the discretion.
(c) To the extent a trustee has not complied with a standard of distribution or has abused a discretion:
(1) a distribution may be ordered by the court to satisfy a judgment or court order against the beneficiary for support or maintenance of the beneficiary’s child, spouse, or former spouse; and
(2) the court shall direct the trustee to pay to the child, spouse, or former spouse such amount as is equitable under the circumstances but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion.
(d) This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
(e) If the trustee’s or cotrustee’s discretion to make distributions for the trustee’s or cotrustee’s own benefit is limited by an ascertainable standard, a creditor may not reach or compel distribution of the beneficial interest except to the extent the interest would be subject to the creditor’s claim were the beneficiary not acting as trustee or cotrustee. (Added 2009, No. 20, § 1; amended 2009, No. 92 (Adj. Sess.), § 7.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 505. Creditor’s claim against settlor

§ 505. Creditor’s claim against settlor
(a) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:
(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors.
(2) With respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor’s benefit. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach shall not exceed the settlor’s interest in the portion of the trust attributable to that settlor’s contribution. This subdivision shall not apply to an irrevocable “special needs trust” established for a disabled person as described in 42 U.S.C. § 1396p(d)(4) or similar federal law governing the transfer to such a trust.
(3) After the death of a settlor, and subject to the settlor’s right to direct the source from which liabilities will be paid, the property of a trust that was revocable at the settlor’s death is subject to claims of the settlor’s creditors, costs of administration of the settlor’s estate, the expenses of the settlor’s funeral and disposal of remains, and statutory allowances to a surviving spouse and children to the extent the settlor’s probate estate is inadequate to satisfy those claims, costs, expenses, and allowances.
(b) For purposes of this section:
(1) during the period the power may be exercised, the holder of a power of withdrawal is treated in the same manner as the settlor of a revocable trust to the extent of the property subject to the power; and
(2) upon the lapse, release, or waiver of the power, the holder is treated as the settlor of the trust only to the extent the value of the property affected by the lapse, release, or waiver exceeds the greater of the amount specified in § 2041(b)(2) or 2514(e) of the Internal Revenue Code of 1986, or § 2503(b) of the Internal Revenue Code of 1986, in each case as in effect on the effective date of this title. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 506. Overdue distribution

§ 506. Overdue distribution
(a) In this section, “mandatory distribution” means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term does not include a distribution subject to the exercise of the trustee’s discretion even if:
(1) the discretion is expressed in the form of a standard of distribution; or
(2) the terms of the trust authorizing a distribution couple language of discretion with language of direction.
(b) Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 5 - Creditor's Claims; Spendthrift and Discretionary Trusts › § 507. Personal obligation of trustee

§ 507. Personal obligation of trustee
Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 6 - Revocable Trusts › § 601. Capacity of settlor of revocable trust

§ 601. Capacity of settlor of revocable trust
The capacity of a settlor required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 6 - Revocable Trusts › § 602. Revocation or amendment of revocable trust

§ 602. Revocation or amendment of revocable trust
(a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before the effective date of this title.
(b) If a revocable trust is created or funded by more than one settlor:
(1) to the extent the trust consists of community property or property held by tenants by the entirety when added to the trust, the trust may be revoked by either spouse acting alone but may be amended only by joint action of both spouses;
(2) to the extent the trust consists of property other than community property or property held by tenants by the entirety when added to the trust, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to that settlor’s contribution; and
(3) upon the revocation or amendment of the trust by fewer than all of the settlors, the trustee shall notify the other settlors of the revocation or amendment.
(c) The settlor may revoke or amend a revocable trust:
(1) by substantial compliance with a method provided in the terms of the trust; or
(2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:
(A) executing a later will or codicil that expressly refers to and revokes or amends the trust or specifically devises or bequeaths specific property that would otherwise have passed according to the terms of the trust, or
(B) any other method manifesting clear and convincing evidence of the settlor’s intent.
(d) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs, but with respect to community property or property held by tenants by the entirety when added to the trust under subdivision (b)(1) of this section, the trustee shall deliver one half of the property to each spouse unless the governing instrument specifically states otherwise.
(e) A settlor’s powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust or the power.
(f) A guardian of the property of the settlor or, if no guardian of the property has been appointed, a guardian of the person of the settlor may exercise a settlor’s powers with respect to revocation, amendment, or distribution of trust property only with the approval of the Probate Division of the Superior Court supervising the guardianship.
(g) A trustee who does not have actual knowledge that a trust has been revoked or amended is not liable for distributions made and other actions taken on the assumption that the trust had not been amended or revoked. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 6 - Revocable Trusts › § 603. Settlor’s powers; powers of withdrawal

§ 603. Settlor’s powers; powers of withdrawal
(a) While a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
(b) During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 6 - Revocable Trusts › § 604. Limitation on action contesting validity of revocable trust; distribution of trust property

§ 604. Limitation on action contesting validity of revocable trust; distribution of trust property
(a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable immediately before the settlor’s death within the earlier of:
(1) three years after the settlor’s death; or
(2) four months after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust’s existence, of the trustee’s name and address, and of the time allowed for commencing a proceeding.
(b) Upon the death of the settlor of a trust that was revocable immediately before the settlor’s death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:
(1) the trustee has actual knowledge of a pending judicial proceeding contesting the validity of the trust; or
(2) a potential contestant has notified the trustee in writing of a possible judicial proceeding to contest the trust, and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(c) A beneficiary of a trust that is determined to have been invalid in whole or in part is liable to return any distribution received to the extent that the invalidity applies to the distribution. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 7 - Office of Trustee › § 701. Accepting or declining trusteeship

§ 701. Accepting or declining trusteeship
(a) Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship:
(1) by substantially complying with a method of acceptance provided in the terms of the trust; or
(2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(c) A person designated as trustee, without accepting the trusteeship, may:
(1) act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to the designated cotrustee, or, if none, to the successor trustee, or, if none, to a qualified beneficiary; and
(2) inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose. (Added 2009, No. 20, § 1.)
2023 Vermont Statutes › Title 14A - Trusts › Chapter 7 - Office of Trustee › § 702. Trustee’s bond

§ 702. Trustee’s bond
(a) A trustee shall give bond to secure performance of the trustee’s duties only if the Probate Division of the Superior Court finds that a bond is required by the terms of the trust and the Probate Division of the Superior Court has not dispensed with the requirement, or the Probate Division of the Superior Court finds by clear and convincing evidence that a bond is needed to protect the interests of the beneficiaries.
(b) The Probate Division of the Superior Court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The Probate Division of the Superior Court may modify or terminate a bond at any time. (Added 2009, No. 20, § 1; amended 2009, No. 154 (Adj. Sess.), § 236, eff. February 1, 2011.)