Title 30, Guardians And Trustees

[§554D-707] Delivery of property by former trustee. (a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee, or other person entitled to it, a trustee who has resigned or been removed has the duties …

[§554D-708] Compensation of trustee. (a) A trustee's compensation shall be as set forth in sections 607-18 and 607-20, as appropriate. (b) On petition of an interested person, after notice to all interested persons, the court may review the propriety of employment of any person b…

[§554D-709] Reimbursement of expenses. (a) A trustee or designated trustee who acts in good faith is entitled to reimbursement out of the trust property, with interest as appropriate, for: (b) An advance by the trustee or designated trustee of money for the protection of the trus…

PART VIII. DUTIES AND POWERS OF TRUSTEE [§554D-801] Duty to administer trust. Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chap…

[§554D-802] Duty of loyalty. (a) A trustee shall administer the trust solely in the interests of the beneficiaries. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 554D-1012, a sale, encumbrance, or other transaction involving the…

[§554D-803] Impartiality. If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests. [L 2021, c 32, pt of §2]

[§554D-804] Prudent administration. A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skil…

[§554D-805] Costs of administration. In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee. [L 2021, c 32, pt of §2]

[§554D-806] Trustee's skills. A trustee who has special skills or expertise or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise shall use those special skills or expertise. [L 2021, c 32, pt of §2]

[§554D-807] Delegation by trustee. (a) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (b) In performing a delegated function, …

[§554D-808] Powers to direct. (a) While a trust is revocable and the settlor has capacity, the trustee may follow a written direction of the settlor that is contrary to the terms of the trust. (b) The terms of a trust may confer upon a trustee or other person a power to direct th…

[§554D-809] Control and protection of trust property. A trustee shall take reasonable steps to take control of and protect the trust property. [L 2021, c 32, pt of §2]

[§554D-810] Recordkeeping and identification of trust property. (a) A trustee shall keep adequate records of the administration of the trust. (b) A trustee shall keep trust property separate from the trustee's own property. (c) Except as otherwise provided in subsection (d), a tr…

[§554D-811] Enforcement and defense of claims. (a) A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. (b) A trustee may abandon or assign to one or more of the beneficiaries of the trust any claim that it believes is not p…

[§554D-812] Collecting trust property. (a) A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee and to redress a breach of trust known to the trustee to have been committed by a former trustee or other person, u…

[§554D-813] Duty to inform and report. (a) During the lifetime of the settlor of a revocable trust, regardless of whether the settlor has capacity to revoke the trust, the trustee's duties under this section are owed exclusively to the settlor. If the settlor lacks capacity to re…

[§554D-814] Discretionary powers; tax savings. (a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of terms such as "absolute", "sole", or "uncontrolled", the trustee shall exercise a discretionary power in good faith an…

[§554D-815] General powers of trustee. (a) A trustee, without authorization by the court, may exercise: (b) The exercise of a power is subject to the fiduciary duties prescribed by this part. [L 2021, c 32, pt of §2]

[§554D-816] Specific powers of trustee. Without limiting the authority conferred by section 554D-815, a trustee may:

[§554D-817] Distribution upon termination. (a) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not not…

PART IX. UNIFORM PRUDENT INVESTOR ACT [§554D-901] Prudent investor rule. (a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this par…

[§554D-902] Standard of care; portfolio strategy; risk and return objectives. (a) A trustee shall invest and manage trust assets as a prudent investor would by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this sta…

[§554D-903] Diversification. A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances or directives of the trust, the purposes of the trust are better served without diversifying. [L 2021, c 32, pt of §…

[§554D-904] Duties at inception of trusteeship. 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 to bring the trust portfol…

[§554D-905] Reviewing compliance. Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight. [L 2021, c 32, pt of §2]

[§554D-906] Language invoking standard of part. The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, authorizes any investment or strategy permitted under this part: "authorized investments"; "investments permissible by la…

[§554G-1] Short title. This chapter shall be known and may be cited as the Permitted Transfers in Trust Act. [L 2010, c 182, pt of §2]

§554G-10 Effect of avoidance of permitted transfers. (a) A creditor may avoid a permitted transfer pursuant to section 554G-8 only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the transfer has been avoided, together with costs includi…

[§554G-11] Multiple transfers. If more than one permitted transfer is made by means of the same trust instrument:

§554G-2 Definitions. As used in this chapter: "Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured. "Creditor" means, with …

§554G-4 Permitted trustees. If a permitted trustee of a trust ceases to meet the criteria for a permitted trustee as defined in section 554G-2, and there remains no trustee that meets the requirements, the permitted trustee shall be deemed to have resigned as of the time that the…

§554G-4.5 Advisors. (a) A transferor may appoint, through the trust instrument, one or more advisors or protectors, including: (b) While a trustee may appoint an advisor, the administrative and non-administrative authority over the trust shall remain with the trustee. (c) Notwith…

§554G-5 Trust instrument. (a) A trust instrument shall be irrevocable and shall expressly incorporate the laws of this State governing the validity, construction, and administration of the trust. (b) The trustee, in its discretion, may terminate any trust if and when its fair mar…

§554G-6 Investments. Nothing in this chapter shall prohibit a trustee from diversifying trust assets. [L 2010, c 182, pt of §2; am L 2011, c 161, §6]

§554G-7 Retained interests of transferor. (a) A permitted transfer shall be subject to this chapter notwithstanding a transferor's retention of any or all of the powers and rights described in section 554G-5(c) and notwithstanding the transferor's service as investment advisor pu…

§554G-8 Avoidance of permitted transfers in trust. (a) No claim, including an action to enforce a judgment entered by a court or other body having adjudicative authority, by a creditor against property that is subject to a permitted transfer that arises after a permitted transfer…

§554G-9 Limitations on permitted transfers. The limitations contained in section 554G-8 on actions by creditors to avoid permitted transfers shall not apply to:

§555-1 Definitions. As used in this chapter: "Employees trust" means any trust created by an employer as part of a stock bonus, pension, profit-sharing, or annuity plan for the exclusive benefit of some or all of the employer's employees, or their beneficiaries, to which contribu…

§555-2 Trust not in violation of rule against perpetuities. Any employees trust may continue for such time as may be necessary to accomplish the purposes for which it has been created and its income may be accumulated for such time as may be necessary to accomplish such purposes.…

§556-1 Definition of terms. (a) In this chapter unless the context or subject matter otherwise requires: "Bank" includes any person or association of persons, whether incorporated or not, carrying on the business of banking. "Fiduciary" includes a trustee under any trust, express…

§556-10 Cases not provided for in chapter. In any case not provided for in this chapter the rules of law and equity, including the law merchant and those rules of law and equity relating to trusts, agency, negotiable instruments, and banking, shall continue to apply. [L 1945, c 1…

§556-2 Application of payments made to fiduciaries. A person who in good faith pays or transfers to a fiduciary any money or other property which the fiduciary as such is authorized to receive, is not responsible for the proper application thereof by the fiduciary; and any right …

§556-3 Transfer of negotiable instrument by fiduciary. If any negotiable instrument payable or indorsed to a fiduciary as such is indorsed by the fiduciary, or if any negotiable instrument payable or indorsed to the fiduciary's principal is indorsed by a fiduciary empowered to in…

§556-4 Check drawn by fiduciary payable to third person. If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of the fiduciary's principal by a fiduciary empowered to draw such instrument in the name of the fiduciary's principal, the payee is not b…

§556-5 Check drawn by and payable to fiduciary. If a check or other bill of exchange is drawn by a fiduciary as such or in the name of the fiduciary's principal by a fiduciary empowered to draw such instrument in the name of the fiduciary's principal, payable to the fiduciary per…

§556-6 Deposit in name of fiduciary as such. If a deposit is made in a bank to the credit of a fiduciary as such, the bank is authorized to pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which such deposit is entered, wi…