Senate Bill No. 233
(By Senator Wooton)
____________
[Introduced February 1, 1994; referred to the Committee
on the Judiciary.]
____________
A BILL to amend article four, chapter forty-four of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
four-a, relating to allowing trustees to terminate trusts
that are no longer economically beneficial or practical.
Be it enacted by the Legislature of West Virginia:
That article four, chapter forty-four of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted by adding thereto a new section, designated
section four-a, to read as follows:
ARTICLE 4. ACCOUNTING BY FIDUCIARIES.
§44-4-4a. Termination of trusts valued at less than fifty
thousand dollars upon showing of economic impracticality or
disadvantage; spendthrift and other protective trusts for
incompetents and children require additional showing of
adequate alternative device or provision.
A fiduciary who is in charge of a trust with assets valuedat less than fifty thousand dollars, the principal of which is
not distributable until some future time, may apply to the
circuit court in the county wherein such trust is situate for
judicial authorization to terminate the trust. Any application
made under this section must be supported by proof that the trust
is no longer economically beneficial or practical as the result
of the costs of administration or some other presently existing
economic circumstance that directly harms the solvency, financial
integrity or monetary value of such trust: Provided, That when
a spendthrift or other protective trust exists for the benefit of
incompetents or minor children, any application made hereunder
must also be supported by proof that an adequate alternative
protective device or provision exists or will exist upon the
termination of such trust for the management of the trust assets
and protection of the primary beneficiary or beneficiaries for
whom the trust was created.
Any court order issued hereunder must contain a provision
requiring the trustee to file in the circuit clerk's office, a
full and current accounting of the trust assets in compliance
with this article and with all other applicable provisions of
law. Such accounting shall be published to all interested
parties at least fourteen days prior to termination of the trust.
The court shall review the accounting for irregularities prior to
termination and take any action it considers appropriate
thereafter.
________
(NOTE: The purpose of this bill is to provide for
authorization to terminate trusts that are no longer economically
beneficial or practical.)