Title XV, JUDICIAL BRANCH AND JUDICIAL PROCEDURES (Ch. 595 - 686D)

1. If the terms of the trust do not specify the trustee’s compensation, a trustee or cotrustee is entitled to compensation that is reasonable under the circumstances. 2. If the terms of the trust specify the trustee’s compensation, the trustee is entitled to be compensated as so …

A trustee is entitled to be repaid out of the trust property, with interest as appropriate, for all of the following expenditures: 1. Expenditures that were properly incurred in the administration of the trust. 2. To the extent that they benefited the trust, expenditures that wer…

1. As used in this section , “trustee’s fee” includes a trustee’s periodic base fee, rate of percentage compensation, minimum fee, hourly rate, and transaction charge, but does not include fees for extraordinary services. 2. A trustee shall not charge an increased trustee’s fee f…

1. On acceptance of a trust, the trustee shall administer the trust according to the terms of the trust and according to this trust code, except to the extent the terms of the trust provide otherwise. 2. The terms of the trust may expand, restrict, eliminate, or otherwise alter t…

1. A trustee shall administer the trust solely in the interest of the beneficiaries, and shall act with due regard to their respective interests. 2. Any transaction involving the trust which is affected by a material conflict between the trustee’s fiduciary and personal interests…

A trustee shall administer the trust with the reasonable care, skill, and caution as a prudent person would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. 99 Acts, ch 125, §49, 109 C2001, §633.4203 2005 Acts, ch 38, §54 CS200…

A trustee may only incur costs that are reasonable in relation to the trust property, purposes, and other circumstances of the trust. 99 Acts, ch 125, §50, 109 C2001, §633.4204 2005 Acts, ch 38, §54 CS2005, §633A.4204

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, has a duty to use those special skills or expertise. 99 Acts, ch 125, §51, 109 C2001, §633.4205 2005 Acts, ch 38, §54…

1. A trustee shall not delegate to an agent or cotrustee the entire administration of the trust or the responsibility to make or participate in the making of decisions with respect to discretionary distributions, but a trustee may otherwise delegate the performance of functions t…

1. While a trust is revocable, the trustee may follow a written direction of the settlor that is contrary to the terms of the trust. 2. In addition to any powers granted to a trustee, the terms of the trust may confer powers upon trust directors and trust protectors as set forth …

1. If a trust has more than one trustee, each trustee shall perform all of the following duties: a. Participate in the administration of the trust. b. Take reasonable steps to prevent a cotrustee from committing a breach of trust, and to compel a cotrustee to redress a breach of …

A trustee shall take reasonable steps under the circumstances to take control of and to safeguard the trust property unless it is in the best interests of the trust to abandon or refuse acceptance of the property. 99 Acts, ch 125, §55, 109 C2001, §633.4209 2005 Acts, ch 38, §54 C…

A trustee shall do all of the following: 1. Keep the trust property separate from other property of the trustee unless the trust provides otherwise. 2. Cause the trust property to be designated in such a manner that the interest of the trust clearly appears. 99 Acts, ch 125, §56,…

A trustee shall take reasonable steps to enforce claims of the trust, to defend claims against the trust, and to defend against actions that may result in a loss to the trust. 99 Acts, ch 125, §57, 109 C2001, §633.4211 2002 Acts, ch 1107, §11 ; 2005 Acts, ch 38, §54 CS2005, §633A…

A trustee shall take reasonable steps to do all of the following: 1. Compel a former trustee or other fiduciary to deliver trust property to the trustee. 2. Redress a breach of trust known to the trustee to have been committed by a prior trustee or other fiduciary. 99 Acts, ch 12…

A trustee of an irrevocable trust shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and the material facts necessary to protect the beneficiaries’ interests. 1. The trustee shall inform each qualified beneficiary of the …

1. A trustee shall exercise a discretionary power within the bounds of reasonable judgment and in accordance with applicable fiduciary principles and the terms of the trust. 2. Notwithstanding the use of such terms as “absolute”, “sole”, or “uncontrolled” in the grant of discreti…

1. As used in this section : a. “First trust” means a trust from which income or principal is transferred into the second trust. b. “Restricted trustee” means a trustee of the first trust if such trustee is a beneficiary of the first trust or if such trustee has the power to chan…

This part may be cited as the “Uniform Prudent Investor Act” . 99 Acts, ch 125, §61, 109 C2001, §633.4301 2005 Acts, ch 38, §54, 55 CS2005, §633A.4301

1. A trustee shall invest and manage trust property as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. 2. A …

A trustee shall diversify the investments of the trust unless the trustee reasonably determines that the purposes of the trust are better served without diversifying. 99 Acts, ch 125, §63, 109 C2001, §633.4303 2005 Acts, ch 38, §54 CS2005, §633A.4303

Within a reasonable time after accepting a trusteeship or receiving trust property, a trustee shall review the trust property and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purpos…

A trustee shall invest and manage the trust property solely in the interest of the beneficiaries. 99 Acts, ch 125, §65, 109 C2001, §633.4305 2005 Acts, ch 38, §54 CS2005, §633A.4305

If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust property, taking into account any differing interests of the beneficiaries. 99 Acts, ch 125, §66, 109 C2001, §633.4306 2005 Acts, ch 38, §54 CS2005, §633A.4306

In investing and managing trust property, a trustee may only incur costs that are appropriate and reasonable in relation to the property, the purposes of the trust, and the skills of the trustee. 99 Acts, ch 125, §67, 109 C2001, §633.4307 2005 Acts, ch 38, §54 CS2005, §633A.4307…

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. 99 Acts, ch 125, §68, 109 C2001, §633.4308 2005 Acts, ch 38, §54 CS2005, §633A.4308

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 trust code: 1. Investments permissible by law for investment of trust funds. 2. Legal investments. 3. Authoriz…

1. A trustee, without authorization by the court, may exercise the following powers: a. The powers conferred by the terms of the trust. b. Except as limited by the terms of the trust, powers conferred by this trust code. 2. This part does not affect the power of the court to reli…

In addition to the powers conferred by the terms of the trust, a trustee may perform all actions necessary to accomplish the proper management, investment, and distribution of the trust property, including the following powers: 1. Collect, hold, and retain trust property received…

1. A trustee under this chapter may present a written request to any person for the purpose of obtaining information needed to perform the trustee’s duties or information regarding any of the following property: a. Owned by the trust for which the trustee is acting as fiduciary. …

1. A violation by a trustee of a duty the trustee owes a beneficiary is a breach of trust. 2. The remedies of a beneficiary for breach of trust are exclusively equitable and any action shall be brought in a court of equity. 99 Acts, ch 125, §73, 109 C2001, §633.4501 2005 Acts, ch…

1. Except as provided in section 633A.4213 , to remedy a breach of trust which has occurred or may occur, a beneficiary or cotrustee of the trust may request the court to do any of the following: a. Compel the trustee to perform the trustee’s duties. b. Enjoin the trustee from co…

A beneficiary may charge a trustee who commits a breach of trust with the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred, or, if greater, the amount of profit lost by reason of the breach…

1. Unless previously barred by adjudication, consent, or other limitation, a claim against a trustee for breach of trust is barred as to a beneficiary who has received an accounting pursuant to section 633A.4213 or other report that adequately discloses the existence of the claim…

A provision in the terms of the trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it does either of the following: 1. Relieves a trustee of liability for breach of trust committed intentionally, with gross negligence, in bad faith, or …

1. A beneficiary shall not hold a trustee liable for a breach of trust if the beneficiary does any of the following: a. Consents to the conduct constituting the breach. b. Releases the trustee from liability for the breach. c. Affirms the transaction constituting the breach. 2. A…

In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party, to be paid by another party or from the trust that is the subject of the controversy. 20…

1. Except as otherwise provided in the contract or in this part, a trustee is not personally liable on a contract properly entered into in the trustee’s fiduciary capacity in the course of administration of the trust unless the trustee fails to reveal the representative capacity …

1. A cotrustee who does not join in exercising a power is not liable to a third party for the consequences of the exercise of the power. 2. A dissenting cotrustee who joins in an action at the direction of the majority cotrustees is not liable to a third party for the action if t…

1. With respect to a third party dealing with a trustee or assisting a trustee in the conduct of a transaction, if the third party acts in good faith and for a valuable consideration and without knowledge that the trustee is exceeding the trustee’s powers or is improperly exercis…

1. A trustee may present a certification of trust to any person in lieu of providing a copy of the trust instrument to establish the trust’s existence or terms or the trustee’s authority. 2. The certification of trust must do all of the following: a. State the names of all the cu…

A person who, in bad faith, wrongfully takes, conceals, or disposes of trust property is liable for twice the value of the property, attorney fees, court costs, and where consistent with existing law, punitive damages, recoverable in an action by a trustee for the benefit of the …

1. Except as otherwise provided in subsection 3 or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust…

1. Unless otherwise specifically stated by the terms of the trust, the interest of each beneficiary is contingent on the beneficiary surviving until the date on which the beneficiary becomes entitled to possession or enjoyment of the beneficiary’s interest in the trust. 2. If a b…

In the absence of clear and convincing evidence to the contrary, language in a governing instrument granting a trustee discretion to make or withhold a distribution shall prevail over any language in the governing instrument indicating that the beneficiary may have a legally enfo…

Except as otherwise provided by the governing instrument, where necessary to abate shares of the beneficiaries of a trust for the payment of debts and charges, federal estate taxes, bequests, the share of the surviving spouse who takes an elective share, and the shares of childre…