UTC 111. Nonjudicial settlement agreements
(1) For purposes of this section, “interested persons” means:
(a) Any settlor of a trust who is living;
(b) All qualified beneficiaries;
(c) Any acting trustee of the trust; and
(d) The Attorney General if the trust is a charitable trust.
(2) If the trust or a portion of the trust is a charitable trust and is irrevocable, and the settlor retains a power to change the beneficiaries of the charitable trust during the settlor’s lifetime or upon the settlor’s death, the Attorney General shall be substituted as the sole interested person to represent all charitable trust beneficiaries whose beneficial interests are subject to the settlor’s retained power.
(3)(a) Except as otherwise provided in subsection (4) of this section, interested persons may enter into a nonjudicial settlement agreement with respect to any matter involving a trust.
(b) If the agreement is not filed with the court under subsection (6) of this section, the agreement is binding on all parties to the agreement.
(c) If the agreement is filed with the court, the agreement is binding as provided in subsections (6) and (7) of this section unless, after the filing of objections and a hearing, the court does not approve the agreement. If the court does not approve the agreement, the agreement is not binding on any beneficiary or party to the agreement.
(4) A nonjudicial settlement agreement is valid only to the extent the agreement does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this chapter or other applicable law.
(5) Matters that may be resolved by a nonjudicial settlement agreement include:
(a) The interpretation or construction of the terms of the trust or other writings that affect 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 or cotrustee and the determination of a trustee’s compensation.
(e) Transfer of a trust’s principal place of administration.
(f) Liability of a trustee for an action or failure to act relating to the trust.
(g) Determining classes of creditors, beneficiaries, heirs, next of kin or other persons.
(h) Resolving disputes arising out of the administration or distribution of the trust.
(i) Modifying the terms of the trust, including extending or reducing the period during which the trust operates.
(6)(a) Any interested person may file a settlement agreement entered into under this section, or a memorandum summarizing the provisions of the agreement, with the circuit court for any county where trust assets are located or where the trustee administers the trust.
(b) After collecting the fee provided for in subsection (8) of this section, the clerk shall enter the agreement or memorandum of record in the court’s register.
(c) Within five days after the filing of an agreement or memorandum under this subsection, the person making the filing must serve a notice of the filing and a copy of the agreement or memorandum on each beneficiary of the trust whose address is known at the time of the filing and who is not a party to the agreement. Service may be made personally, or by registered or certified mail, return receipt requested. The notice of filing shall be substantially in the following form:
OR MEMORANDUM OF
You are hereby notified that the attached document was filed by the undersigned in the above entitled court on the _____ day of
______,___. Unless you file objections to the agreement within 60 days after that date, the agreement will be approved and will be binding on all beneficiaries and parties to the agreement.
If you file objections within the 60-day period, the court will fix a time and place for a hearing. At least 10 days before the date of that hearing, you must serve a copy of your objections and give notice of the time and place of the hearing to all beneficiaries and parties to the agreement. See ORS 130.045 (UTC 111. Nonjudicial settlement agreements).
(d) Proof of mailing of the notices required under this subsection must be filed with the court. Proof of service may be made by a certificate of service in the form provided by ORCP 7 F, by a signed acceptance of service or by a return receipt from the postal authorities.
(e) If no objections are filed with the court within 60 days after the filing of the agreement or memorandum, the agreement is effective and binding on all beneficiaries who received notice under paragraph (c) of this subsection and all beneficiaries who waived notice under subsection (7)(e) of this section.
(7)(a) If objections are filed with the court within 60 days after the filing of a settlement agreement or memorandum under this section, the clerk of the court shall collect the fee provided in subsection (8) of this section. Upon the filing of objections, the court shall fix a time and place for a hearing. The person filing the objections must serve a copy of the objections on all beneficiaries who are parties to the agreement and all beneficiaries who received notice under subsection (6)(c) of this section, and give notice to those persons of the time and place fixed by the court for a hearing. Service must be made at least 10 days before the date set by the court for the hearing. Service of the objections may be made personally or by registered or certified mail, return receipt requested.
(b) Proof of mailing of objections must be filed with the court. Proof of service may be made by a certificate of service in the form provided by ORCP 7 F, by a signed acceptance of service or by a return receipt from the postal authorities.
(c) The court shall approve an agreement entered into under this section after a hearing upon objections filed under this subsection unless:
(A) The agreement does not reflect the signatures of all persons required by this section;
(B) The agreement is not authorized by this section; or
(C) Approval of the agreement would not be equitable to beneficiaries who are not interested persons and who are not parties to the agreement.
(d) An agreement approved by the court after a hearing is binding on all beneficiaries and parties to the agreement.
(e) Beneficiaries entitled to notice under subsection (6)(c) of this section may waive the notice.
(8) The clerk of the circuit court shall collect in advance the filing fees established under ORS 21.135 (Standard filing fee) for the filing of an agreement or memorandum of agreement under subsection (6) of this section and for the filing of objections under subsection (7) of this section. [2005 c.348 §11; 2009 c.275 §6; 2011 c.595 §30; 2013 c.529 §2]
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