N.Y. Estates, Powers & Trusts Law Section 7-1.19
Application for termination of uneconomical trust

§ 7-1.19 Application for termination of uneconomical trust (a) Notwithstanding sections 7-1.5 and 7-2.4 of this article or any other contrary provision of law:

(1)

Any trustee or beneficiary of a lifetime or testamentary express trust (other than a wholly charitable trust) may, by application to the surrogate’s court having jurisdiction over the trust, seek a termination of such trust when the expense of administering the trust is uneconomical.

(2)

If, upon such application, the court finds that continuation of the trust is economically impracticable, that the express terms of the disposing instrument do not prohibit its early termination, and that such termination would not defeat the specified purpose of the trust and would be in the best interests of the beneficiaries, the court may make an order or decree terminating the trust and directing the distribution of the trust assets to and among those beneficiaries who at the time are entitled (or entitled in the discretion of the trustee) to the income and/or principal of the trust and those beneficiaries who would be entitled (or entitled in the discretion of the trustee) to the income and/or principal of the trust if it were to terminate immediately before such order or decree. The distribution of the trust assets shall be made in such manner, proportions and shares as in the judgment of the court will effectuate the intention of the creator.

(b)

Notice of the application shall be given to such persons and at such time and in such manner as the court, in its discretion, may direct.

(c)

If the application or the possibility of the application of this section to any trust would reduce or eliminate a charitable deduction otherwise available to any person under the income tax, gift tax, estate tax or generation-skipping transfer tax provisions of the United States Internal Revenue Code, or the laws of any state of the United States or of the District of Columbia, this section shall not apply to such trust.

(d)

This section shall not apply to a supplemental needs trust which conforms to the provisions of section 7-1.12 of this part.

Source: Section 7-1.19 — Application for termination of uneconomical trust, https://www.­nysenate.­gov/legislation/laws/EPT/7-1.­19 (updated Sep. 22, 2014; accessed Dec. 20, 2025).

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Verified:
Dec. 20, 2025

Last modified:
Sep. 22, 2014

§ 7-1.19. Application for termination of uneconomical trust's source at nysenate​.gov

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