Title 53 — Title 53
0 chapters · 435 sections in this title.
O.C.G.A. § 53-12-40 Revocation and modification generally
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(a) A settlor shall have no power to modify or revoke a trust in the absence of an express reservation of such power. 780 53-12-43 (b) A power to revoke shall be deemed to include a power to modify, and an unrestricted power to modify shall be deemed to include a power to revoke.…
O.C.G.A. § 53-12-400 When the right to income begins and ends
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(a) An income beneficiary shall be entitled to net income from the date on which the income interest begins. An income interest shall begin on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive inco…
O.C.G.A. § 53-12-402 Apportionment when income interest ends
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(a) As used in this Code section, the term ‘‘undistributed income’’ means net income received before the date on which an income interest ends. Such term shall not include an item of income or expense that is due or accrued or net income that has been added or is required to be a…
O.C.G.A. § 53-12-41 Trustee’s consent necessary to enlarge duties
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In exercising a power to modify the trust instrument, the settlor shall not enlarge the duties or liabilities of the trustee without the trustee’s express consent. History. — Code 1981, § 53-12-41, enacted by Ga. L. 2010, p. 579, § 1/SB 131. 53-12-42. Notice to trustee.
O.C.G.A. § 53-12-410 Character of receipts
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(a) As used in this Code section, the term ‘‘entity’’ means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or est…
O.C.G.A. § 53-12-411 Distribution from trust or estate
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A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest and shall allocate to principal an amount received as a distribution of principal from such trust or esta…
O.C.G.A. § 53-12-412 Business and other activities conducted by trustee
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(a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust’s general accounting records, the trustee may maintai…
O.C.G.A. § 53-12-42 Lapse of devise or bequest to trust
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Revocation of trust before testator’s death, §53-12-101. Power of settlor, §53-12-40. Power to modify. Power to revoke deemed to include, §53-12-40. TRUSTS AND TRUSTEES —Cont’d Sales. Power of trustee, §53-12-261. Second trusts. Invasion of principal of original trust. Trustees’ …
O.C.G.A. § 53-12-420 Principal receipts
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A trustee shall allocate to principal: (1) To the extent not allocated to income under this article, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payor under a contract naming the trust o…
O.C.G.A. § 53-12-421 Rental property
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To the extent that a trustee accounts for receipts from rental property pursuant to this Code section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount rece…
O.C.G.A. § 53-12-422 Obligation to pay money
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(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization of…
O.C.G.A. § 53-12-423 Testamentary additions to trusts
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Designation of trust as beneficiary of testator’s life insurance policy, §53-12-120. Devise or bequest to life insurance trust, §53-12-101. LIFE PRESERVERS. Accident reports, §52-7-14. Personal flotation device. Defined, §52-7-3. Personal watercraft. Required to be worn by persons o…
O.C.G.A. § 53-12-424 Insubstantial allocations not required
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If a trustee determines that an allocation between principal and income required by Code Sections 53-12-425 through 53-12-428 or Code Section 53-12-431 is insubstantial, the trustee may allocate the entire amount to principal unless one of the circumstances described in Code Sect…
O.C.G.A. § 53-12-425 Deferred compensation, annuities, and similar payments
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(a) As used in this Code section, the term: (1) ‘‘Payment’’ means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payor in exchange for future payments. Such…
O.C.G.A. § 53-12-426 Liquidating asset
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(a) As used in this Code section, the term ‘‘liquidating asset’’ means an asset whose value will diminish or terminate because such asset is expected to produce receipts for a period of limited duration. Such term includes a leasehold, patent, copyright, royalty right, and right …
O.C.G.A. § 53-12-427 Minerals, water, and other natural resources
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(a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this Code section, the trustee shall allocate them as follows: (1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be …
O.C.G.A. § 53-12-428 Timber
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(a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this Code section, the trustee shall allocate the net receipts: (1) To income to the extent that the amount of timber removed from the land does not exceed the rate of …
O.C.G.A. § 53-12-429 Property not productive of income
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(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the trustee transfers from principal to income under Co…
O.C.G.A. § 53-12-43 Power of agent or conservator to revoke trust
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(a) A settlor’s powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the trust instrument and the power. (b) A settlor’s powers with respect to revocation,…
O.C.G.A. § 53-12-430 Derivatives and options
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(a) As used in this Code section, the term ‘‘derivative’’ means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asse…
O.C.G.A. § 53-12-431 Asset-backed securities
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(a) As used in this Code section, the term ‘‘asset-backed security’’ means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. Such term includes an asset that give…
O.C.G.A. § 53-12-44 Modification, termination, etc, of trust
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Proceedings to approve, §53-12-61. Principal and income act generally, §§53-12-380 to 53-12-431. Qualified beneficiary, §53-12-2. Report to beneficiaries. Assets, liabilities, receipts, disbursement of trust. Trustee’s duty upon request, §53-12-243. Representation and binding of oth…
O.C.G.A. § 53-12-45 Liability of trustee
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Act performed or omission at direction of person holding power to revoke, §53-12-303. Life beneficiary. Heirs of estate with remainder interest. Trust not revocable because of, §53-12-44. Reversion in or power of appointment over trust assets. Trust not revocable because of, §53-1…
O.C.G.A. § 53-12-450 Final accounting
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Death, resignation, removal of trustee, termination of trust, §53-12-231. Interim accounting relieving trustee from liability. Petition, §53-12-230. AUCTIONS. Navigation companies. Stock and stockholders. Subscription for capital stock. Auction sale of stock upon default by subsc…
O.C.G.A. § 53-12-451 Disbursements from principal
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(a) A trustee shall make the following disbursements from principal: (1) The remaining one-half of the disbursements described in paragraphs (1) and (2) of subsection (a) of Code Section 53-12-450; (2) All of the trustee’s compensation calculated on principal as a fee for accepta…
O.C.G.A. § 53-12-452 Transfers from income to principal for depreciation
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(a) As used in this Code section, the term ‘‘depreciation’’ means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year. (b) A trustee may transfer to principal a reasonable amount of the net c…
O.C.G.A. § 53-12-453 Transfers from income to reimburse principal
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Wherever a charge that is properly allocable to income has been made or is expected to be made from principal because of the unusually large nature of the charge or otherwise, the trustee may transfer an appropriate amount from income to principal in one or more accounting period…
O.C.G.A. § 53-12-454 Income taxes
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(a) A tax required to be paid by a trustee based on receipts allocated to income shall be paid from income. (b) A tax required to be paid by a trustee based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing auth…
O.C.G.A. § 53-12-455 Express trusts
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Creation and validity, §§53-12-20 to 53-12-28. Foreign trustees, §§53-12-320 to 53-12-323. General provisions, §§53-12-1 to 53-12-455. Investment and management of trust property. Generally, trustees’ powers, §§53-12-340 to 53-12-364. Principal and income act, §§53-12-380 to 53-1…
O.C.G.A. § 53-12-5 Law governing the meaning and effect of trust provisions
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The meaning and effect of the trust provisions shall be determined by: (1) The law of the jurisdiction designated in the trust instrument unless the effect of the designation is contrary to the public policy of the jurisdiction having the most significant relationship to the matte…
O.C.G.A. § 53-12-500 Definitions
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As used in this article, the term: (1) ‘‘Directed trustee’’ means a trustee that is subject to a trust director’s power of direction. 944 53-12-500 (2) ‘‘Power of appointment’’ means a power that enables a person, acting in a nonfiduciary capacity, to: (A) Designate a recipient of…
O.C.G.A. § 53-12-501 Application of article; construction of trust instrument
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(a) This article shall apply when the trust instrument evidences the settlor’s intent to provide for the office and function of a trust director, regardless of the terms used to describe such office and functions. (b) This article shall not apply to: (1) A power of appointment; (…
O.C.G.A. § 53-12-502 Authority, procedures, and powers of trust directors
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(a) Except as otherwise provided in this Code section, a trust instrument may grant powers of direction to a trust director. 946 53-12-503 (b) Except as otherwise provided in the trust instrument, when a trust instrument grants powers of direction to a trust director, the trust d…
O.C.G.A. § 53-12-503 Role of directors; petitioning court for instructions
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(a) Except as otherwise provided in this article, with respect to a power of direction, a trust director shall have the same fiduciary duty and liability in the exercise or nonexercise of the power of direction as a trustee in a like position and under similar circumstances. (b) W…
O.C.G.A. § 53-12-505 Relief from duty and liability
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A trust instrument may relieve a cotrustee from duty and liability with respect to another cotrustee’s exercise or nonexercise of a power of the other cotrustee to the same extent that a directed trustee is relieved from duty and liability with respect to a trust director’s power…
O.C.G.A. § 53-12-506 Breach of trust
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Action against other trustee to compel performance, redress or enjoin breach, §53-12-306. Liability for breach committed by other trustee, §53-12-305. Statute of limitation. Cotrustee’s claim against other cotrustee, §53-12-307. Compensation, §53-12-211. Deed to acquire beneficial…
O.C.G.A. § 53-12-6 Jurisdiction
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(a) Trusts are peculiarly subjects of equity jurisdiction. Suits by or against a trustee that sound at law may be filed in a court of law. (b) Actions concerning the construction or administration of a trust or for a court to take any actions authorized by the provisions of this c…
O.C.G.A. § 53-12-60 Reformation to correct mistakes
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(a) If it is proved by clear and convincing evidence that the trust provisions were affected by a mistake of fact or law, whether in expression or inducement, the court may reform the trust provisions, even if unambiguous, to conform the provisions to the settlor’s intention. (b)…
O.C.G.A. § 53-12-61 Reformation of trust
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Petition, §53-12-60. Resignation of trustee. Petition, §53-12-220. Unitrusts. Conversion of trust to, §53-12-362. Year’s support. Issuance of citation, §53-3-6. NUISANCES. Navigable streams. Right of passage. Structures, §52-1-33. Tidewaters. Protection of tidewaters. Structures,…
O.C.G.A. § 53-12-62 Power of trustee to invade principal of original trust
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(a) As used in this Code section, the term: (1) ‘‘Original trust’’ refers to the trust from which principal is being distributed. (2) ‘‘Second trust’’ refers to the trust to which assets are being distributed from the original trust, whether a separate trust or an amended version…
O.C.G.A. § 53-12-63 Division and consolidation of trusts
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Reserved. Repealed by Ga. L. 2018, p. 262, § 9/HB 121, effective July 1, 2018. Editor’s notes. — This Code section was based on Ga. L. 2010, p. 579, § 1/SB 131.
O.C.G.A. § 53-12-64 Termination of trusts
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Reserved. Repealed by Ga. L. 2018, p. 262, § 10/HB 121, effective July 1, 2018. Editor’s notes. — This Code section was based on Ga. L. 2010, p. 579, § 1/SB 131.
O.C.G.A. § 53-12-65 Modification or termination of uneconomic trust
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(a) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property either having a total value less than $100,000.00 or for which the trustee’s annual fee for administering the trust is 5 percent or more of the market value of the principal assets …
O.C.G.A. § 53-12-7 When trust and chapter conflict
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(a) The effect of the provisions of this chapter may be varied by the trust instrument except: (1) As to any requirements relating to the creation and validity of express trusts as provided in Article 2 of this chapter; (2) As to the effect of the rules relating to spendthrift tr…
O.C.G.A. § 53-12-8 Charitable entities, §53-12-8
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Wills. Testamentary gift charity, §53-4-62. CLASS GIFTS TO CHILDREN. Wills. Presumption, §53-4-48. CLEAR AND CONVINCING EVIDENCE. Death. Perils or tragedies resulting in probable death, §53-9-1. Wills. Construction of will. Intent of testator, §53-4-55. CLOSED-END MANAGEMENT. Exe…
O.C.G.A. § 53-12-80 Spendthrift provisions
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(a) A spendthrift provision shall only be valid if it prohibits both voluntary and involuntary transfers. (b) A term of a trust providing that the interest of a beneficiary is held subject to a spendthrift trust, or words of similar import, shall be sufficient to restrain both vol…
O.C.G.A. § 53-12-81 Limitations on creditors’ rights to discretionary distributions
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A transferee or creditor of a beneficiary shall not compel the trustee or a trust director to pay any amount that is payable only in the discretion of the trustee or trust director regardless of whether the discretion is expressed in the form of a standard of distribution, includi…
O.C.G.A. § 53-12-82 Trusts generally
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Revised trust code of 2010, §§53-12-1 to 53-12-455. INTESTATE NONDOMICILIARY. Ancillary proceedings. Probate of foreign or out-of-state wills, intestate nondomiciliary, §§53-5-30 to 53-5-41. 1024 INDEX INTESTATE SUCCESSION. Adoption. Status of adoptive parents and relatives, §53-…
O.C.G.A. § 53-12-83 Trust directors
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Beneficiary serving as trust director, §53-12-502. Beneficiary’s powers over trust.
O.C.G.A. § 53-12-9 Binding nonjudicial settlement agreement
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(a) Except as provided in subsection (b) of this Code section, the trustee, any trust director, and all other persons whose interests would be affected may enter into a binding nonjudicial settlement agreement with respect to any matter involving the trust. (b) A nonjudicial sett…