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Hi and welcome to JA. I am Ray and will be the
expert helping you tonight.
Here the trustee would be expected to motion
the court to terminate teh trust.
15408. (a) On petition by a trustee or beneficiary, if the courtdetermines that the fair market value of the principal of a trust hasbecome so low in relation to the cost of administration thatcontinuation of the trust under its existing terms will defeat orsubstantially impair the accomplishment of its purposes, the courtmay, in its discretion and in a manner that conforms as nearly aspossible to the intention of the settlor, order any of the following: (1) Termination of the trust. (2) Modification of the trust. (3) Appointment of a new trustee.
It is clear under the Trust Code Section
to motion the court and seek to terminate
the trust as it is insolvent and no longer
benefits the beneficiaries and should be
terminated here by law.
The Trustee once this is done is released from his duties under
the Trust and would complete a final report to the court and it ends
at that point.The court would find that good cause exists as you present to
terminate the trust here under the section above.
I appreciate the chance to help you tonight.Thanks again.