Title 53 — Title 53
0 chapters · 435 sections in this title.
O.C.G.A. § 53-12-307 Limitation of actions
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(a) Unless a claim is previously barred by adjudication, consent, limitation, or otherwise, if a beneficiary has received a written report that adequately discloses the existence of a claim against the trustee for a breach of trust, the claim shall be barred as to that beneficiary …
O.C.G.A. § 53-12-308 What constitutes, §53-12-300
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Business or other enterprise. Compensation to trustee for services. Trust with ownership interest in corporation or other entity, §53-12-214. Continuance or participation in operation. Power of trustee to, §53-12-261. Farming operations. Continuance by trustee, powers, §53-12-261…
O.C.G.A. § 53-12-320 Nonresidents acting as trustees
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(a) Any nonresident who is eligible to serve as a trustee under Code Section 53-12-201 may act as a trustee in this state pursuant to the terms of this Code section. (b) Any nonresident trustee who acts as a trustee in this state shall be deemed to have consented to service upon …
O.C.G.A. § 53-12-321 Foreign entities acting as trustees
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(a) Any foreign entity may act in this state as trustee, executor, administrator, guardian, or any other like or similar fiduciary capacity, whether the appointment is by law, will, deed, inter vivos trust, security deed, mortgage, deed of trust, court order, or otherwise without …
O.C.G.A. § 53-12-323 Filing statement with Secretary of State; appointment of agent for service
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(a) Prior to the time when any foreign entity acts pursuant to the authority of this article in any fiduciary capacity in this state, the foreign entity shall file with the Secretary of State a verified statement which shall state: (1) The correct name of the foreign entity; (2) The…
O.C.G.A. § 53-12-340 Investment standard
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(a) A trustee shall invest and manage trust assets as a prudent investor would by considering the purposes, provisions, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. (b…
O.C.G.A. § 53-12-341 Concentrated holdings and diversification
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A trustee shall reasonably manage the risk of concentrated holdings of assets in a trust by diversifying or by using other appropriate mechanisms, except as otherwise provided in this Code section, as follows: (1) The duty imposed by this Code section shall not apply if the trust…
O.C.G.A. § 53-12-342 Duties at inception of trusteeship
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Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, p…
O.C.G.A. § 53-12-343 Reviewing compliance
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Compliance with the investment rules of this part shall be determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight. History. — Code 1981, § 53-12-343, enacted by Ga. L. 2010, p. 579, § 1/SB 131. 53-12-344. Lan…
O.C.G.A. § 53-12-344 Language invoking application of article
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The following terminology or comparable language in the provisions of a trust, unless otherwise limited or modified, shall authorize any investment or strategy permitted under this article and Article 17 of this chapter: ‘‘investments permissible by law for investment of trust fun…
O.C.G.A. § 53-12-345 Delegation
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(a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (1) Selecting an agent; (2) Establishing the scope and te…
O.C.G.A. § 53-12-361 Power of adjustment
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(a) Subject to subsections (c) and (f ) of this Code section, a trustee may adjust between principal and income by allocating an amount of income to principal or an amount of principal to income to the extent the trustee considers appropriate if: (1) The governing trust instrumen…
O.C.G.A. § 53-12-362 Conversion to unitrust
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(a) Unless expressly prohibited by the trust instrument, a trustee may release the power to adjust under Code Section 53-12-361 and convert a trust into a unitrust as described in this Code section if: (1) The trustee determines that the conversion will enable such trustee to bet…
O.C.G.A. § 53-12-363 Abuse of trustee’s discretion
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(a) A court shall not change a trustee’s decision to exercise or not to exercise a discretionary power conferred by Code Section 53-12-361 or 53-12-362 unless it determines that the decision was an abuse of the trustee’s discretion. (b) The decisions to which subsection (a) of th…
O.C.G.A. § 53-12-364 Express total return unitrusts
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(a) The following provisions shall apply to a trust which by its governing trust instrument requires the distribution at least annually of a unitrust amount equal to a fixed percentage of not less than 3 percent nor more than 5 percent per year of the net fair market value of the …
O.C.G.A. § 53-12-380 Short title
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This article shall be known and may be cited as the ‘‘Georgia Principal and Income Act.’’ History. — Code 1981, § 53-12-380, enacted by Ga. L. 2010, p. 579, § 1/SB 131. 53-12-381. Definitions.
O.C.G.A. § 53-12-381 Definitions
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As used in this article, the term: (1) ‘‘Accounting period’’ means a calendar year unless another 12 month period is selected by a fiduciary. Such term includes a portion of a calendar year or other 12 month period that begins when an income interest begins or ends when an income …
O.C.G.A. § 53-12-390 Payment of interest on pecuniary amount
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(a) If a beneficiary is to receive a pecuniary amount outright from a trust after an income interest ends, and no interest is provided for by the terms of the trust, the pecuniary amount usually bears interest at the legal rate after the expiration of 12 months from the date the i…
O.C.G.A. § 53-12-391 Payment of expenses
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Expenses incurred in connection with the settlement of a decedent’s estate or the winding up of a terminating income interest, including interest and penalties concerning taxes, fees of attorneys and personal representatives and trustees, and court costs, may be charged against t…
O.C.G.A. § 53-12-4 Law governing the validity of the trust
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(a) As to real property, the validity of a trust shall be determined by the law of the situs of the real property. (b) As to all other property, the validity of a trust shall be determined by: (1) The law of the jurisdiction designated in the trust instrument unless the effect of…
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…