Virginia Non Judicial Settlement Agreement

An out-of-court settlement agreement is valid only to the extent that it is not contrary to an essential purpose of the trust and contains conditions that could be duly approved by the court. Among the issues that can be resolved by such an agreement in this context are: the interpretation or construction of the terms of the trust; Instruction to a mandatary not to perform a particular act or to give a mandatary all necessary or desirable powers; the resignation or appointment of an agent; and the liability of an agent for an act related to the trust. In case of doubt, any interested person may apply to the Tribunal for approval of an out-of-court settlement agreement to determine whether the agreement contains conditions that the Tribunal could have properly approved.11 A. For the purposes of this section, “interested persons” means persons whose agreement would be necessary to reach a binding agreement if the transaction were approved by the court. If only the beneficiaries accept the change, it is very likely that the Virginia courts will still pay much attention to the original intent of the concessionaire. Therefore, an application to the Court of Justice must clearly indicate whether or not the essential purpose of the trust would be destroyed by the proposed amendments, and beneficiaries must be prepared to carry out a thorough analysis of the grantor`s original intention when creating the trust. Finally, if a court can modify or terminate a non-irrevocable trust due to the opposition of a representative, the agent has the possibility to oppose such changes and the court will also take into account the objections of a representative when making a decision. Therefore, while all beneficiaries of a trust agree, it is important to consult with a lawyer about the potential barriers to amending or termasuring an irrevocable trust and the pleading requirements necessary to ensure judicial authorization. D. Among the issues that can be resolved by an out-of-court agreement is that while out-of-court settlement agreements appear to be an excellent solution to many of a trust`s problems, they are not effective unless they are signed by all “interested” persons or persons whose agreement would be necessary to obtain a binding settlement of the case in court. This definition varies depending on the section of the code under which the out-of-court settlement agreement operates, but, in most cases, encompasses all “qualified beneficiaries” of the trust.

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