Title 53

Nothing contained in Code Sections 53-12-180 and 53-12-181 shall cause or be construed to cause a forfeiture or reversion of any of the property of a corporation which is subject to such Code sections. History. — Code 1981, § 53-12-182, enacted by Ga. L. 2010, p. 579, § 1/SB 131.

With respect to property held by a corporation which is a private foundation and which is subject to conditions which permit distributions to the extent of the net income of the property each year but do not permit distributions of the property or any part thereof itself, the dir…

Nothing in Code Sections 53-12-180 through 53-12-183 shall impair the rights and powers of the courts or the Attorney General of this state with respect to any corporation. History. — Code 1981, § 53-12-184, enacted by Ga. L. 2010, p. 579, § 1/SB 131. PART 2 TRUSTS

Notwithstanding any provision therein to the contrary and except as provided in Code Section 53-12-192, the governing trust instrument of any trust which is a private foundation, a charitable trust, as defined in Section 4947(a)(1) of the federal Internal Revenue Code, or a split-…

Notwithstanding any provision therein to the contrary and except as provided in Code Section 53-12-192, the governing trust instrument of any trust which is a private foundation or which is a charitable trust, as defined in Section 4947(a)(1) of the federal Internal Revenue Code, …

The trustees of any trust which is a private foundation, a charitable trust, as defined in Section 4947(a)(1) of the federal Internal Revenue Code, or a split-interest trust, as defined in Section 4947(a)(2) of the federal Internal Revenue Code, may, without judicial proceedings, a…

(a) With respect to any trust which is a private foundation or a charitable trust, as defined in Section 4947(a)(1) of the federal Internal Revenue Code, the governing trust instrument of which permits distributions to the extent of the net income of the trust each year but does n…

Nothing contained in Code Sections 53-12-190 through 53-12-193 shall cause or be construed to cause a forfeiture or reversion of any of the property of a trust which is subject to such Code sections or to make the purposes of such trust impossible of accomplishment. History. — Co…

Nothing in Code Sections 53-12-190 through 53-12-193 shall impair the rights and powers of the courts or the Attorney General of this state with respect to any trust. History. — Code 1981, § 53-12-195, enacted by Ga. L. 2010, p. 579, § 1/SB 131. ARTICLE 11 TRUSTEES

A trustee shall have legal capacity under Georgia law to acquire, hold, and transfer title to property. An individual shall be eligible to serve as a trustee regardless of citizenship or residency. If the trustee is a corporation, partnership, or other entity, it shall be require…

(a) A settlor may appoint trustees or grant that power to others, including trust beneficiaries. (b) A trust shall never fail for want of a trustee. (c) If the trust instrument names a person to fill a vacancy or provides a method of appointing a trustee, any vacancy shall be filled…

(a) The acceptance of a trust shall be necessary to constitute a person as trustee. Acceptance may be effected by acts as well as words. After acceptance, the trustee shall not decline the trusteeship. (b) Except as otherwise provided in subsection (c) of this Code section, a per…

(a) A trustee shall not be required to give a bond to secure performance of the trustee’s duties unless: (1) The trust instrument requires a bond; or (2) A bond is found by the court to be necessary to protect the interests of beneficiaries or creditors of the trust, even though t…

The authority of cotrustees to act on behalf of the trust shall be as follows: (1) A power vested in two or more trustees shall only be exercised by their unanimous action; provided, however, that a cotrustee may delegate to one or more other cotrustees the performance of ministe…

(a) Trustees shall be compensated in accordance with either the trust instrument or any separate written agreement between the trustee and the settlor. After the settlor’s death or incapacity or while the trust is irrevocable, the trust instrument or the agreement relating to suc…

Unless any separate written agreement provides otherwise: (1) Each cotrustee shall be compensated as specified by the terms of the trust, as each trustee may have agreed or in accordance with a published fee schedule, and such compensation among cotrustees shall not be apportioned…

(a) A trustee who is receiving compensation as described in subsection (c) of Code Section 53-12-210 may petition the court for compensation that is greater than the compensation allowed under that subsection. Notice of the petition for extra compensation shall be given to all qu…

A trustee shall be entitled to be reimbursed out of the trust property for reasonable expenses that were properly incurred in the administration of the trust. History. — Code 1981, § 53-12-213, enacted by Ga. L. 2010, p. 579, § 1/SB 131.

(a) Any trustee may receive compensation for services, as specified in this subsection, from a corporation or other business enterprise, where the trust estate owns an interest in the corporation or other business enterprise, provided that: (1) The services provided by the trustee…

(a) A trustee may resign: (1) In the manner and under the circumstances described in the trust instrument; (2) Upon at least 30 days’ written notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (3) Upon a trustee’s petition to the court. (b) The pe…

(a) A trustee may be removed: (1) In accordance with the provisions of the trust instrument; or (2) Upon petition to the court by any interested person showing good cause. (b) In the discretion of the court, in order to protect the trust property or the interests of any beneficiar…

(a) At any time following 12 months from the date of acceptance of a trust, but not more frequently than once every 12 months, a trustee may petition the court to approve an interim accounting relieving the trustee from liability for the period covered by the interim accounting. …

(a) If the trustee resigns, is removed, or dies or upon the termination of the trust, a beneficiary or the successor trustee may petition the court to require the trustee or the trustee’s personal representative to appear before the court for a final accounting. Alternatively, the …

Nothing in this article shall restrict the right of any party to seek an equitable accounting. History. — Code 1981, § 53-12-232, enacted by Ga. L. 2010, p. 579, § 1/SB 131.

(a) The duties contained in this part are in addition to and not in limitation of the common law duties of the trustee, except to the extent inconsistent therewith. (b) Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its …

(a) In administering a trust, the trustee shall exercise the judgment and care of a prudent person acting in a like capacity and familiar with such matters, considering the purposes, provisions, distribution requirements, and other circumstances of the trust. (b) A trustee who in…

(a) Within 60 days after the date of creation of an irrevocable trust or of the date on which a revocable trust becomes irrevocable, the trustee shall notify the qualified beneficiaries of such trust of the existence of such trust and the name and mailing address of such trustee. (…

(a) On reasonable request by any qualified beneficiary, the trustee shall provide the qualified beneficiary with a report of information, to the extent relevant to that beneficiary’s interest, about the assets, liabilities, receipts, and disbursements of the trust, the acts of the tru…

A trustee shall distribute all net income derived from the trust at least annually. History. — Code 1981, § 53-12-244, enacted by Ga. L. 2010, p. 579, § 1/SB 131.

A trustee shall not be under any duty to investigate the resources of any beneficiary when determining whether to distribute trust property to such beneficiary. History. — Code 1981, § 53-12-245, enacted by Ga. L. 2010, p. 579, § 1/SB 131.

(a) A trustee shall administer the trust solely in the interests of the beneficiaries. (b) This Code section shall not preclude the following transactions, if fair to the beneficiaries: (1) An agreement between a trustee and a beneficiary relating to the appointment or compensation …

Except to the extent that the governing trust instrument clearly manifests an intention that the trustee shall or may favor one or more of the beneficiaries, a trustee shall administer a trust impartially based on what is fair and reasonable to all of the beneficiaries and with due…

Notwithstanding the breadth of discretion granted to a trustee in the trust instrument, including the use of such terms as ‘‘absolute,’’ ‘‘sole,’’ or ‘‘uncontrolled,’’ the trustee shall exercise a discretionary power in good faith. History. — Code 1981, § 53-12-260, enacted by Ga…

(a) A trustee of an express trust, without court authorization, shall be authorized to exercise: (1) Powers conferred by the trust instrument; and (2) Except as limited by the trust instrument: (A) All powers over the trust property that an unmarried competent owner has over indi…

A corporate fiduciary, without authorization by the court, may exercise the power: (1) To retain stock or other securities of its own issue received on the creation of the trust or later contributed to the trust, including the securities into which the securities originally receiv…

(a) By an expressed intention of the testator or settlor contained in a will or in a trust instrument in writing whereby an express trust is created, any or all of the powers or any portion thereof enumerated in this part, as they exist at the time of the signing of the will by t…

The qualified beneficiaries of a trust that omits any of the powers in Code Section 53-12-261 may by unanimous consent authorize but not require the court to grant to the trustee those powers. History. — Code 1981, § 53-12-264, enacted by Ga. L. 2010, p. 579, § 1/SB 131; Ga. L. 201…

(a) Subject to subsection (c) of this Code section, and unless the trust provisions expressly indicate that a rule in this subsection shall not apply: (1) A person other than a settlor who is a beneficiary and trustee of a trust that confers on such trustee a power to make discret…

(a) The trustee may present a certification of trust to any person other than a beneficiary in lieu of providing a copy of the trust instrument to establish the existence of the trust provisions. (b) The certification of trust provided for in subsection (a) of this Code section shal…

Whenever a bank or trust company is duly authorized to act and is acting as a fiduciary, which term shall include an executor, administrator, trustee, guardian, or conservator, and has a nominee in whose name securities, including, without limitation, bonds, stocks, notes, and oth…

If two or more fiduciaries are acting jointly in reference to any securities, it shall be lawful to register the property in the name of any nominee or any joint corporate fiduciary. In the event that more than one corporate fiduciary is acting, it shall be lawful to register securi…

(a) Any fiduciary holding securities in its fiduciary capacity, any bank or trust company holding securities as a custodian or managing agent, and any bank or trust company holding securities as custodian for a fiduciary shall be authorized to deposit or arrange for the deposit of t…

The trustee shall be accountable to the beneficiary for the trust property. A violation by the trustee of any duty that the trustee owes the beneficiary shall be a breach of trust. History. — Code 1981, § 53-12-300, enacted by Ga. L. 2010, p. 579, § 1/SB 131.

(a) If a trustee commits a breach of trust, or threatens to commit a breach of trust, a beneficiary shall have a cause of action to seek: (1) To recover damages; (2) To compel the trustee to perform the trustee’s duties; (3) To require an accounting; (4) To enjoin the trustee from…

(a) A trustee who commits a breach of trust shall be personally chargeable with any damages resulting from such breach of trust, including, but not limited to: (1) Any loss or depreciation in value of the trust property as a result of such breach of trust, with interest; (2) Any …

(a) No provision in a trust instrument shall be effective to relieve the trustee of liability for a breach of trust committed in bad faith or with reckless indifference to the interests of the beneficiaries. (b) A trustee of a revocable trust shall not be liable to a beneficiary fo…