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- Alaska Statutes.
- Title 13. Decedents' Estates, Guardianships, Transfers, and Trusts.
- Chapter 38. Principal and Income of Trusts
- Section 220. Judicial Control of Discretionary Powers.
previous: Section 210
. Trustee's Power to Adjust.
next: Section 300
. Power to Convert to Unitrust.
AS 13.38.220. Judicial Control of Discretionary Powers.
- (a) A court may not change a fiduciary's decision to exercise or not to exercise a discretionary power conferred by this
chapter unless the court determines that the decision was an abuse of the fiduciary's discretion.
- (b) If a court determines that a fiduciary has abused the fiduciary's discretion regarding a discretionary power conferred
by this chapter, the remedy is to restore the income and remainder beneficiaries to the positions they would have
occupied if the fiduciary had not abused the fiduciary's discretion, according to the following rules:
- (1) to the extent that the abuse of discretion has not resulted in a distribution to a beneficiary or has resulted in a
distribution that is too small, the court shall require the fiduciary to distribute from the trust an amount to the
beneficiary that the court determines will restore the beneficiary, in whole or in part, to the beneficiary's
- (2) to the extent that the abuse of discretion has resulted in a distribution to a beneficiary that is too large, the
court shall restore the beneficiaries, the trust, or both, in whole or in part, to their appropriate positions by
requiring the fiduciary to withhold an amount from one or more future distributions to the beneficiary who received the
distribution that was too large or by requiring that beneficiary or that beneficiary's estate to return some or all of
the distribution to the trust, notwithstanding a spendthrift or similar provision;
- (3) if the abuse of discretion concerns the power to convert a trust into a unitrust, the court shall require the trustee
either to convert into a unitrust or to reconvert from a unitrust;
- (4) to the extent that the court is unable, after applying (1) - (3) of this subsection, to restore the beneficiaries, the
trust, or both to the positions they would have occupied if the fiduciary had not abused the fiduciary's discretion,
the court may require the fiduciary to pay an appropriate amount from the fiduciary's own funds to one or more of the
beneficiaries, the trust, or both.
Article 02. CONVERSION TO UNITRUST
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