58a-413. Cy pres.

58a-413

Chapter 58a.--KANSAS UNIFORM TRUST CODE
Article 4.--CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST

      58a-413.   Cy pres.If a charitable trust is or becomesillegal or impossible or impracticable offulfillment or if adevise or bequest for charity, at the time it was intended to become effectiveis illegal or impossibleor impracticable of fulfillment, and if the settlor, manifested a generalintention to devote theproperty to charity, any judge, on application of any trustee, any interestedparty or the attorney general, may order an administration of the trust, asnearly as possible to fulfill the manifestedgeneral charitable intention of the settlor. In every such proceeding, theattorney general, asrepresentative of the public interest, shall be notified and given anopportunity to be heard. Theprovisions of this act shall not be applicable if the settlor has provided,either directly or indirectly,for an alternative plan in the event the charitable trust is or becomes illegalor impossible orimpracticable of fulfillment. If the alternative plan is also a charitabletrust, the intention shown inthe original plan shall prevail in the application of this act.

      (b)   If a federal estate tax deduction is not allowable at the time of adecedent's death because of thefailure of an interest in property which passes from the decedent to a person,or for a use, describedin section 2055(a) of the federal internal revenue code of 1986, as in effectonDecember 31, 2000, to meet therequirements of section170(f)(3)(B) or 2055(e)(2) of the federal internal revenue code of 1986, as ineffecton December 31, 2000, then in orderthat such deductionshall nevertheless be allowable under section 2055(a) of the federal internalrevenuecode of 1986, as in effect on December 31, 2000, anyjudge, on application of any trustee, or any interested party may:

      (1)   With the written consent of the charitable beneficiaries, thenoncharitable beneficiaries not underany legal disability and duly appointed guardians or guardians ad litem actingon behalf of anybeneficiaries under legal disability or conservator; or

      (2)   upon a finding that the interest of such beneficiaries is substantiallypreserved, order a changeto the trust by reformation, amendment, construction or otherwise, whichchanges a reformableinterest into a qualified interest within the meaning of section 2055(e)(3) ofthe federal internal revenue codeof 1986, as in effect on December 31, 2000. In every such proceeding, theattorney general, as representative of the public interest, shallbe notified and given an opportunity to be heard.

      (c)   As used in this act "impracticable of fulfillment" includes, but is notlimited to, the failure of any charitable trust, testamentary or inter vivos,including, without limitation, trustsdescribed in section509 of the federal internal revenue code of 1986, as in effect on December 31,2000,and charitable remainder trusts described in section 664ofthe federal internal revenue code of 1986, as in effect on December 31, 2000,toinclude, if required to do so by section 508(e) or section4947(a) of the federal internal revenue code of 1986, as in effect on December31,2000, the provisions relating to governing instruments setforth in section 508(e) of the federal internal revenue code of 1986, as ineffect onDecember 31, 2000.

      (d)   The provisions of this section shall be effective as to all trusts notconstrued prior to the effectivedate of this act.

      History:   L. 2002, ch. 133, § 34; Jan. 1, 2003.