14-2907

14-2907. Honorary trusts; trusts for pets;
conditions

A. If a trust is for a specific lawful noncharitable purpose or for lawful
noncharitable purposes to be selected by the trustee and there is no definite or
definitely ascertainable beneficiary designated, the trust may be performed by the
trustee for not longer than ninety years whether or not the terms of the trust
contemplate a longer duration.

B. A trust for the care of a designated domestic or pet animal is valid. The trust
terminates when no living animal is covered by the trust. A governing instrument shall be
liberally construed to bring the transfer within this subsection, to presume against the
merely precatory or honorary nature of the disposition and to carry out the general
intent of the transferor. Extrinsic evidence is admissible in determining the
transferor's intent.

C. In addition to the provisions of subsection A or B, a trust created under this
section is subject to the following:

1. Except as expressly provided otherwise in the trust instrument, no portion of
the principal or income may be converted to the use of the trustee or to any use other
than for the trust's purposes or for the benefit of a covered animal.

2. On termination, the trustee shall transfer the unexpended trust property in the
following order:

(a) As directed in the trust instrument.

(b) If the trust was created in a nonresiduary clause in the transferor's will or
in a codicil to the transferor's will, under the residuary clause in the transferor's
will.

(c) If no taker is produced by the application of subdivision (a) or (b) of this
paragraph, to the transferor's heirs under section 14-2711.

3. For the purposes of section 14-2707, the residuary clause is treated as creating
a future interest under the terms of a trust.

4. The intended use of the principal or income can be enforced by a person who is
designated for that purpose in the trust instrument or, if none, by a person appointed by
a court on application to it by any person.

5. Except as ordered by the court or required by the trust instrument, no filing,
report, registration, periodic accounting, separate maintenance of funds, appointment or
fee is required by reason of the existence of the fiduciary relationship of the trustee.

6. A court may reduce the amount of the property transferred if it determines that
amount substantially exceeds the amount required for the intended use. The amount of the
reduction, if any, passes as unexpended trust property under paragraph 2 of this
subsection.

7. If no trustee is designated or no designated trustee is willing or able to
serve, a court shall name a trustee. A court may order the transfer of the property to
another trustee if this is necessary to assure that the intended use is carried out and
if no successor trustee is designated in the trust instrument or if no designated
successor trustee agrees to serve or is able to serve. A court may also make other
orders and determinations that it determines advisable to carry out the intent of the
transferor and this section.