Sec. 25. (a) As used in this section, “interested person” means a person whose consent would be required to achieve a binding settlement were the settlement to be approved by the court.

     (b) Except as provided in subsection (c), an interested person may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. This procedure is not intended to foreclose or limit any other procedure for settlement available under other applicable law.

     (c) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under this article or other applicable law. A nonjudicial settlement may not be used to produce a result not authorized by other provisions of this article, including but not limited to terminating or modifying a trust in an impermissible manner.

     (d) Subject to subsection (c), matters that may be resolved by a nonjudicial settlement agreement include the following:

(1) The interpretation or construction of the terms of a trust.

(2) The approval of a trustee‘s report or accounting or waiver of the preparation of a trustee‘s report or accounting.

(3) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power.

(4) The resignation or appointment of a trustee and the determination of a trustee’s compensation.

(5) Transfer of a trust’s principal place of administration.

(6) Liability or release of a trustee for an action relating to a trust.

(7) The criteria for distribution to a beneficiary where a trustee is given discretion.

(8) The resolution of a dispute arising out of the administration or distribution of a trust.

(9) An investment action.

(10) The appointment of and powers granted to a trust director.

(11) Direction to a trust director to perform or refrain from performing a particular act or the grant of a power to a trust director.

     (e) Before or after the parties enter into a nonjudicial settlement agreement, an interested person may request the court to approve a nonjudicial settlement agreement to determine whether the representation under IC 30-4-6-10.5 was adequate and to determine whether the agreement contains terms and conditions the court would approve.

As added by P.L.221-2019, SEC.7. Amended by P.L.231-2019, SEC.28.