For purposes of this section, the term “interested persons” means persons whose interest would be affected by a settlement agreement.

Except as otherwise provided in subsection (3), interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust.

A nonjudicial settlement agreement among the trustee and trust beneficiaries is valid only to the extent the terms and conditions could be properly approved by the court. A nonjudicial settlement may not be used to produce a result not authorized by other provisions of this code, including, but not limited to, terminating or modifying a trust in an impermissible manner.

Matters that may be resolved by a nonjudicial settlement agreement include:

1. (a)
   The interpretation or construction of the terms of the trust.
2. (b)
   The approval of a trustee’s report or accounting.
3. (c)
   The direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power.
4. (d)
   The resignation or appointment of a trustee and the determination of a trustee’s compensation.
5. (e)
   The transfer of a trust’s principal place of administration.
6. (f)
   The liability of a trustee for an action relating to the trust.

Any interested person may request the court to approve or disapprove a nonjudicial settlement agreement.