[§557A-105]  Notice of proposed action. 
(a)  A trustee may give a notice of proposed action regarding a matter governed
by the chapter as provided in this section.  For the purpose of this section, a
proposed action includes a course of action and a decision not to take action.



(b)  The trustee shall mail notice of the
proposed action to all adult beneficiaries who are receiving, or are entitled
to receive, income under this trust or to receive a distribution of principal
if the trust were terminated at the time the notice is given.



(c)  Notice of proposed action need not be
given to any person who consents in writing to the proposed action.  The
consent may be executed at any time before or after the proposed action is
taken.



(d)  The notice of proposed action shall state
that it is given pursuant to this section and shall state all of the following:



(1)  The name and mailing address of the trustee;



(2)  The name and telephone number of a person who may
be contacted for additional information;



(3)  A description of the action proposed to be taken
and an explanation of the reasons for the action;



(4)  The time within which objections to the proposed
action can be made, which shall be at least thirty days from the mailing of the
notice of proposed action; and



(5)  The date on or after which the proposed action
may be taken or is effective.



(e)  A beneficiary may object to the proposed
action by mailing a written objection to the trustee at the address stated in
the notice of proposed action within the time period specified in the notice of
proposed action.



(f)  A trustee is not liable to a beneficiary
for an action regarding a matter governed by this chapter if the trustee does
not receive a written objection to the proposed action from the beneficiary within
the applicable period and the other requirements of this section are
satisfied.  If no beneficiary entitled to notice objects under this section,
the trustee is not liable to any current or future beneficiary with respect to
the proposed action.



(g)  If the trustee receives a written
objection within the applicable period, either the trustee or a beneficiary may
petition the court to have the proposed action taken as proposed, taken with
modifications, or denied.  In the proceeding, a beneficiary objecting to the
proposed action has the burden of proving that the trustee's proposed action
constitutes an abuse of discretion.  A beneficiary who has not objected is not
estopped from opposing the proposed action in the proceeding.  If the trustee
decides not to implement the proposed action, the trustee shall notify the
beneficiaries of the decision not to take the action and the reasons for the
decision, and the trustee's decision not to implement the proposed action does
not itself give rise to liability to any current or future beneficiary.  A
beneficiary may petition the court to have the action taken, and has the burden
of proving that not taking the action is an abuse of discretion. [L 2000, c
191, pt of §1]