Title 18, Business Structure and Function

A trustee must fulfill the purpose of the trust, as declared at its creation, and must follow all the directions of the trustor given at that time, except as modified by the consent of all parties interested, in the same manner, and to the same extent, as an employee. SOURCE: CC …

If a trustee procures or assents to his discharge from his office, before his trust is fully executed, he must use at least ordinary care and diligence to secure the appointment of a trustworthy successor before accepting his own final discharge. COL7222015 SOURCE: CC § 2260.

A trustee must invest money received by him under the trust, as fast as he collects a sufficient amount, in such manner as to afford reasonable security and interest for the same. SOURCE: CC § 2261.

If a trustee omits to invest the trust moneys according to the last section, he must pay simple interest thereon, if such omission is negligent merely, and compound interest if it is willful. SOURCE: CC § 2262.

A trustee cannot enforce any claim against the trust property which he purchases after or in contemplation of his appointment as trustee; but he may be allowed, by any competent court, to charge to the trust property what he has in good faith paid for the claim, upon discharging …

A trustee is a general agent for the trust property. His authority is such as is conferred upon him by the declaration of trust and by this Chapter, and none other. His acts, within the scope of his authority, bind the trust property to the same extent as the acts of an agent bin…

Where there are several co-trustees, all must unite in any act to bind the trust property, unless the declaration of trust otherwise provides. SOURCE: CC § 2268.

A discretionary power conferred upon a trustee is presumed not to be left to his arbitrary discretion, but may be controlled by the proper court if not reasonably exercised, unless an absolute discretion is clearly conferred by the declaration of trust. SOURCE: CC § 2269. NOTE: N…

A trustee is entitled to the repayment, out of the trust property, of all expenses actually and properly incurred by him in the performance of his trust. He is entitled to the repayment of even unlawful expenditures, if they were productive of actual benefit to the estate. SOURCE…

Except as provided in 15 GCA '3313, when a declaration of trust is silent upon the subject of compensation the trustee is entitled to the same compensation as an executor. If it specifies the amount of his compensation, he is entitled to the amount thus specified and no more. If …

An involuntary trustee, who becomes such through his own fault, has none of the rights mentioned in this Article. SOURCE: CC § 2275. NOTE: No 1970 Civil Code '§ 2276-2278 existed. ---------- ARTICLE 5 TERMINATION OF THE TRUST

A trust is extinguished by the entire fulfillment of its object, or by such object becoming impossible or unlawful. SOURCE: CC § 2279.

A trust cannot be revoked by the trustor after its acceptance, actual or presumed, by the trustee and beneficiaries, except by the consent of all the beneficiaries, unless the declaration of trust reserves a power of revocation to the trustor, and in that case the power must be s…

The office of a trustee is vacated: 1. By his death; or, 2. By his discharge. SOURCE: CC § 2281.

A trustee can be discharged from his trust only as follows: 1. By the extinction of the trust; 2. By the completion of his duties under the trust; 3. By such means as may be prescribed by the declaration of trust; 4. By the consent of the beneficiary, if he has capacity to contra…

The court having jurisdiction may remove any trustee who has violated or is unfit to execute the trust, or may accept the resignation of a trustee. SOURCE: CC § 2283. NOTE: No 1970 Civil Code '§ 2284-2286 existed. ----------- ARTICLE 6 SUCCESSION OR APPOINTMENT OF NEW TRUSTEES

COL7222015 The court having jurisdiction must appoint a trustee whenever there is a vacancy and the declaration of trust does not provide a practical method of appointment. In all cases of appointment of any trustee or trustees by any court, if the beneficiaries, or any one of th…

On the death, renunciation, or discharge of one of several co-trustees the trust survives to the others. SOURCE: CC § 2288.

When a trust exists without any appointed trustee, or where all the trustees renounce, die, or are discharged, the court having jurisdiction must appoint another trustee and direct the execution of the trust. The court may, in its discretion, appoint the original number, or any l…