Nonjudicial Settlement Agreement: Approval Of Accounts, Termination Of Trust And Release And Indemnification Of Trustee (Page 2 of 4) in pdf

could properly be approved by a court. Under section 701.0111(5) of the Wisconsin

Statutes, matters that may be addressed in a nonjudicial settlement agreement include

approval of a trustee’s accounting, release of a trustee from liability. Under section

701.0111(4), the agreement may include any other term and condition that could be

property approved by a court under the Wisconsin Trust Code. A court may approve

termination of an uneconomic trust under section 701.0414. The interested parties are

willing to agree that the matters addressed in this Agreement are matters that may be

properly addressed under a nonjudicial settlement agreement under Wisconsin law and

that the purpose of this Agreement is to allow for an expeditious termination of thet trust

without a court approval of the accounts and actions of the trustee.

Under section 701.0414(4) a trust can be terminated if it is determined

that the value of the trust property is insufficient to justify the cost of administration even

if the trust property has a total value in excess of $100,000. [Alternatively you could cite

to other provisions in section 701.0411 – 701.0416, e.g. termination by consent

(701.0411(2), unanticipated circumstances (701.0412), modification to achieve settlor’s

tax objectives (701.0416)]

10.

Attorney ________________ has represented the Qualified Beneficiaries

in the preparation of this Agreement. Attorney __________ represents the Trustee.

NOW, THEREFORE, in consideration of the Recitals and the willingness of the

Current Trustee to terminate the Trust, the interested parties agree as follows.

Approval of Accounts. The Qualified Beneficiaries have reviewed the

accountings of the Current Trustee, and each approves those accountings and all

actions of the Current Trustee.

Termination of Trust. The Trustee agrees to terminate the Trust pursuant

to _________ of the [Wisconsin statutes or terms of the Trust Agreement] on the

grounds that it would be [in the best interests of the beneficiaries.] The Qualified

Beneficiaries consent to the termination and distribution of all of the Trust assets to the

Current Beneficiary. After execution of this Agreement by all of the interested persons,

the distribution upon termination will be paid in accordance with Section 701.0817 of

the Wisconsin statutes to the Current Beneficiary. The Remainder Beneficiary

consents to the distribution of all assets of the Trust to the Current Beneficiary and

releases the Trustee from any liability with respect to the distribution to the Current

Beneficiary.

Release and Indemnification. In consideration of the Trustee agreeing to

terminate the trust, the Qualified Beneficiaries, jointly and severally, each release,

exonerate and forever fully discharge the Trustee from any and all liability with respect

to the actions taken or not taken by the Trustee incident to its administration of the

Trust, including its agreement to terminate the Trust and distribute all of the Trust

assets to the Current Beneficiary. The Qualified Beneficiaries agree to refrain from

instituting or in any way aiding or proceeding upon any liability claim related to the

Drafted 6/26/2015

Nonjudicial Settlement Agreement: Approval Of Accounts, Termination Of Trust And Release And Indemnification Of Trustee Page 2