(1) Except as otherwise provided in subsection (3) of this section, any person may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust, regardless of whether the settlement agreement is supported by consideration. (2) The required parties to a nonjudicial settlement agreement are those persons whose interests in the trust would be materially affected by its provisions were the settlement agreement to be approved by the court at the time it was entered into by the parties. (3) 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 pursuant to this code or other applicable law. (4) Matters that may be resolved by a nonjudicial settlement agreement include but are not limited to: (a) The interpretation or construction of the terms of the trust; (b) The approval of a trustee's report or accounting; (c) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; (d) The resignation or appointment of a trustee and the determination of a trustee's compensation; (e) Transfer of a trust's principal place of administration; and (f) Liability of a trustee for an action relating to the trust. (5) Any person whose interest in the trust may be affected by a nonjudicial settlement agreement may request the court to approve or disapprove the nonjudicial settlement agreement, to determine whether the representation as provided in part 3 of this code was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
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