§ 15-5-111 — Nonjudicial settlement agreements

(1) Except as otherwise
provided in subsection (3) of this section, any person may enter into a binding
nonjudicial settlement agreement with respect to any matter involving a trust,
regardless of whether the settlement agreement is supported by consideration.

(2) The required parties to a nonjudicial settlement agreement are those
persons whose interests in the trust would be materially affected by its provisions
were the settlement agreement to be approved by the court at the time it was
entered into by the parties.

(3) 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 court pursuant to this code or other applicable law.

(4) Matters that may be resolved by a nonjudicial settlement agreement
include but are not limited to:

(a) The interpretation or construction of the terms of the trust;

(b) The approval of a trustee's report or accounting;

(c) Direction to a trustee to refrain from performing a particular act or the
grant to a trustee of any necessary or desirable power;

(d) The resignation or appointment of a trustee and the determination of a
trustee's compensation;

(e) Transfer of a trust's principal place of administration; and

(f) Liability of a trustee for an action relating to the trust.

(5) Any person whose interest in the trust may be affected by a nonjudicial
settlement agreement may request the court to approve or disapprove the
nonjudicial settlement agreement, to determine whether the representation as
provided in part 3 of this code was adequate, and to determine whether the
agreement contains terms and conditions the court could have properly approved.

Legislative History

Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1151, � 1, effective January 1, 2019.