Title 30, Guardians And Trustees

[§554D-1005] Limitation of action against trustee. (a) A beneficiary shall not commence a proceeding against a trustee for breach of trust more than one year after the date the beneficiary or a representative of the beneficiary, as described in part III, was sent a report that ad…

[§554D-1006] Reliance on trust instrument. A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument shall not be liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance. [L 2021, c 32, pt of…

[§554D-1007] Event affecting administration or distribution. If the happening of an event, including marriage, divorce, performance of educational requirements, or attainment of a specific age, birth, or death, affects the administration or distribution of a trust, a trustee who …

[§554D-1008] Exculpation of trustee. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:

[§554D-1009] Beneficiary's consent, release, or ratification. A trustee is not liable to a beneficiary for breach of trust if the beneficiary or the representative of the beneficiary, as described in part III, consented to the conduct constituting the breach, released the trustee…

PART I. GENERAL PROVISIONS AND DEFINITIONS [§554D-101] Short title. This chapter may be cited as the Uniform Trust Code. [L 2021, c 32, pt of §2]

[§554D-1010] Limitation on personal liability of trustee. (a) Except as otherwise provided in the contract, a trustee shall not be personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in …

[§554D-1011] Interest as general partner. (a) Unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership shall not be personally liable on a contract entered into by the partnership after the trus…

[§554D-1012] Protection of person dealing with trustee. (a) A person, other than a beneficiary, who in good faith assists a trustee or who in good faith and for value deals with a trustee, without actual knowledge that the trustee is exceeding or improperly exercising the trustee…

[§554D-1013] Certification of trust. (a) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (b) A certification of trust may be signed or o…

[§554D-102] Scope. This chapter applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. [L 2021, c 32, pt of §2]

[§554D-103] Definitions. As used in this chapter: "Action", with respect to an act of a trustee, includes a failure to act. "Ascertainable standard" means a standard relating to an individual's health, education, support, or maintenance within the meaning of section 2041(b)(1)(A)…

[§554D-104] Knowledge. (a) Subject to subsection (b), a person has knowledge of a fact if the person: (b) An organization that conducts activities through employees has notice or knowledge of a fact involving a trust only from the time the information was received by an employee …

[§554D-105] Default and mandatory rules. (a) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary. (b) The terms of a trust prevail over any provisi…

[§554D-106] Common law of trusts; principles of equity. The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another law of this State. [L 2021, c 32, pt of §2]

[§554D-107] Governing law. The meaning and effect of the terms of a trust are determined by:

[§554D-108] Principal place of administration. (a) Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if: (b) A trustee is under a c…

[§554D-109] Methods and waiver of notice. (a) Notice to a person under this chapter or the sending of a document to a person under this chapter shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document.…

[§554D-110] Others treated as qualified beneficiaries. (a) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this chapter if the charitable organization, on the date the ch…

PART XI. MISCELLANEOUS PROVISIONS [§554D-1101] Uniformity of application and construction. In applying and construing this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. [L 2021, c …

[§554D-1102] Electronic records and signatures. The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures and of contracts formed or performed with the use of those records or signatures conform to the re…

[§554D-1103] Severability clause. If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or applicat…

[§554D-1104] Application to existing relationships. (a) Except as otherwise provided in this chapter, on January 1, 2022: (b) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before Januar…

[§554D-111] Nonjudicial settlement agreements. (a) Except as otherwise provided in subsection (b), interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. (b) A nonjudicial settlement agreement is valid only to th…

[§554D-112] Rules of construction. The rules of construction that apply in this State to the interpretation of and disposition of property by will also apply, as appropriate, to the interpretation of the terms of a trust and the disposition of the trust property. [L 2021, c 32, p…

[§554D-113] Insurable interest of trustee. (a) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the own…

PART II. JUDICIAL PROCEEDINGS [§554D-201] Role of court in administration of trust. (a) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. (b) A trust is not subject to continuing judic…

[§554D-202] Jurisdiction over trustee and beneficiary. (a) By accepting the trusteeship of a trust having its principal place of administration in this State or by moving the principal place of administration to this State, the trustee submits personally to the jurisdiction of th…

[§554D-203] Subject matter jurisdiction. (a) The court has exclusive jurisdiction of proceedings in this State concerning the administration of a trust. (b) The court has concurrent jurisdiction with other courts of this State of actions and proceedings involving a trust, includi…

[§554D-204] Venue. (a) Except as otherwise provided in subsection (b), venue for a judicial proceeding involving a trust is in the judicial circuit of this State in which the trust's principal place of administration is or will be located and, if the trust is created by will and …

PART III. REPRESENTATION [§554D-301] Representation; basic effect. (a) Notice to a person who may represent and bind another person under this part has the same effect as if notice were given directly to the other person. (b) The consent of a person who may represent and bind ano…

[§554D-302] Representation by holder of power of appointment. To the extent there is no material conflict of interest between the holder of a power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind per…

[§554D-303] Representation by fiduciaries and parents. To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute:

[§554D-304] Representation by person having substantially identical interest. Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another…

[§554D-305] Appointment of guardian ad litem. (a) If the court determines that an interest is not represented under this part, or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem to receive notice, give consent, and otherw…

PART IV. CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST [§554D-401] Methods of creating trust. A trust may be created by:

[§554D-402] Requirements for creation. (a) A trust is created only if: (b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities. (c) A power in a trustee, or in another person under the terms of …

[§554D-403] Trusts created in other jurisdictions. A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation: Unless otherwi…

[§554D-404] Trust purposes. A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms shall be for the benefit of its beneficiaries, subject to the provisions of the trust. [L 2021, c 32, pt of…

[§554D-405] Charitable purposes; enforcement. (a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the co…

[§554D-406] Creation of trust induced by fraud, duress, or undue influence. A trust is void to the extent its creation was induced by fraud, duress, or undue influence. [L 2021, c 32, pt of §2]

[§554D-407] Evidence of oral trust. (a) Except as required by law other than this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms, including any amendments thereto, may be established only by clear and convincing evide…

[§554D-408] Trust for care of animal. (a) A trust for the care of one or more designated domestic or pet animals shall be valid. The trust terminates when no living animal is covered by the trust. A governing instrument shall be liberally construed to bring the transfer within th…

[§554D-409] Noncharitable trust without ascertainable beneficiary. Except as otherwise provided in section 554D-408 or by other law, the following rules apply:

[§554D-410] Modification or termination of trust; proceedings for approval or disapproval. (a) In addition to the methods of termination prescribed by sections 554D-411 through 554D-414, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no pu…

[§554D-411] Modification or termination of noncharitable irrevocable trust by consent. (a) A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, even if the modification or termination is inconsistent with a material pu…