Title XXXI, TRUSTS AND ESTATES OF DECEDENTS AND PERSONS UNDER DISABILITY

456.4-413. Cy pres. — 1. Except as otherwise provided in subsection 2 of this section, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (1) the trust does not fail, in whole or in part; (2) the trust property does not revert …

456.4-414. Modification or termination of uneconomic trust. — 1. After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property having a total value less than two hundred fifty thousand dollars may terminate the trust if the trustee concludes tha…

456.4-415. Reformation to correct mistakes. — The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that both the settlor's intent and the terms of the trust were affected b…

456.4-416. Modification to achieve settlor's tax objectives. — To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effe…

456.4-417. Combination and division of trusts. — After notice to the qualified beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary or adversely affe…

456.4-418. Distribution of trust income or principal to qualified remainder beneficiary, when — applicability to irrevocable trust, when. — 1. During any period of time that this section applies to an irrevocable trust, the trustee shall have the authority in its discretion to di…

456.4-419. Distributions of income and principal of first trusts and second trusts, discretionary power of trustee — notice requirements. — 1. Unless the terms of the trust instrument expressly provide otherwise, a trustee, other than a settlor, who has discretionary power under …

456.4-420. No-contest clause, claims for relief. — 1. If a trust instrument containing a no-contest clause is or has become irrevocable, an interested person may file a petition to the court for an interlocutory determination whether a particular motion, petition, or other claim …

456.5-501. Rights of beneficiary's creditor or assignee, exceptions. — Except as otherwise provided in sections 456.5-502 to 456.5-507, to the extent a beneficiary's interest is not subject to a spendthrift provision, an assignee or a judgment creditor of the beneficiary may, wit…

456.5-502. Spendthrift provision. — 1. A spendthrift provision is valid if it restrains either the voluntary or involuntary transfer or both the voluntary and involuntary transfer of a beneficiary's interest. 2. A term of a trust providing that the interest of a beneficiary is he…

456.5-503. Exceptions to spendthrift provision. — 1. In this section, (1) "Child" includes any person for whom an order or judgment for child support has been entered in this or another state, and (2) "Judgment" means a judgment which may be executed in this state. 2. Even if a t…

456.5-504. Discretionary trusts, interest not enforceable, when — applicability — effect of standard — limitation on access to records. — 1. A beneficiary's interest in a trust that is subject to the trustee's discretion does not constitute an interest in property or an enforceab…

456.5-505. Creditor's claim against settlor. — 1. Whether or not the terms of a trust contain a spendthrift provision, during the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors. 2. With respect to an irrevocable trust wi…

456.5-506. Mandatory distribution defined — overdue distribution. — 1. As used in this section, "mandatory distribution" means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon …

456.5-507. Personal obligations of trustee. — Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt. ­­-------- (L. 2004 H.B. 1511) Effective 1-01-05, see § 456.11-1104

456.5-508. Creditor claim, appointive property not subject to, when. — 1. Except as provided in sections 456.970 to 456.1135: (1) Appointive property subject to a general power of appointment exercisable only at the powerholder's death is not subject to the claim of a creditor; (…

456.6-601. Capacity of settlor of revocable trust. — The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will. ­­-------- (L. 2004 H.B. 1511) Eff…

456.6-602. Revocation or amendment of revocable trust. — 1. Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply to a trust created under an instrument executed before January 1, 200…

456.6-603. Settlor's powers — powers of withdrawal. — 1. While a trust is revocable and the settlor has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor. 2. A settlor is pre…

456.6-604. Limitation on action contesting validity of revocable trust — distribution of trust property. — 1. A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earliest of: (1) two years after the s…

456.7-701. Accepting or declining trusteeship. — 1. Except as otherwise provided in subsection 3 of this section, a person designated as trustee accepts the trusteeship: (1) by substantially complying with a method of acceptance provided in the terms of the trust; or (2) if the t…

456.7-702. Trustee's bond. — 1. A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the re…

456.7-703. Cotrustees. — 1. Cotrustees shall act by majority decision. 2. If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. 3. A cotrustee must participate in the performance of a trustee's function unless the cotrustee is unavailable to perf…

456.7-704. Vacancy in trusteeship — appointment of successor. — 1. A vacancy in a trusteeship occurs if: (1) a person designated as trustee declines the trusteeship; (2) a person designated as trustee cannot be identified or does not exist; (3) a trustee resigns; (4) a trustee is…

456.7-705. Resignation of trustee. — 1. A trustee may resign: (1) upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or (2) with the approval of the court. 2. In approving a resignation, the court may issue orders and impose …

456.7-706. Removal of trustee. — 1. The settlor, a cotrustee, or a qualified beneficiary may request the court to remove a trustee, or a trustee may be removed and replaced by the court within its discretion on its own initiative. 2. The court within its discretion may remove and…

456.7-707. Delivery of property by former trustee. — 1. 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 o…

456.7-708. Compensation of trustee. — 1. If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. 2. If the terms of a trust specify the trustee's compensation, the trustee is entitled to …

456.7-709. Reimbursement of expenses. — 1. A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) expenses that were properly incurred in the administration of the trust; and (2) to the extent necessary to prevent unjust enrichmen…

456.8-801. 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 sections 456.1-101 to 456.11-1106. ­­-------- (L…

456.8-802. Duty of loyalty. — 1. A trustee shall administer the trust solely in the interests of the beneficiaries. 2. Subject to the rights of persons dealing with or assisting the trustee as provided in section 456.10-1012, a sale, encumbrance, or other transaction involving th…

456.8-803. 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. 2004 H.B. 1511) Effective 1-01-05, see …

456.8-804. 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, ski…

456.8-805. 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. 2004 H.B. 1511) Effective 1-01-05, see § 456.11-1104

456.8-806. 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. 2004 H.B. 1511) Effective …

456.8-807. Delegation by trustee. — 1. A trustee may delegate to an agent 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: (1) selecting an agent; (2) …

456.8-808. Powers to direct — trust protector, powers, limitations. — 1. While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust. 2. A trust instrument may provide for one or more persons, not then serving as a trus…

456.8-809. Control and protection of trust property. — A trustee shall take reasonable steps to take control of and protect the trust property, except that this duty does not apply to, and the trustee is not responsible for, items of tangible personal property that are property o…

456.8-810. Record keeping and identification of trust property. — 1. A trustee shall keep adequate records of the administration of the trust. 2. A trustee shall keep trust property separate from the trustee's own property. 3. Except as otherwise provided in subsection 4 of this …

456.8-811. Enforcement and defense of claims. — A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. ­­-------- (L. 2004 H.B. 1511) Effective 1-01-05, see § 456.11-1104

456.8-812. Collecting trust property. — 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. ­­-------- (L. 2004…

456.8-813. Duty to inform and report — inapplicable, when. — 1. (1) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. A trustee shall be …

456.8-814. Discretionary powers — tax savings. — 1. Notwithstanding the use of such terms as "absolute,""sole," or "uncontrolled," in the exercise of discretion under an ascertainable standard, the trustee shall exercise such discretionary power in good faith and in accordance wi…

456.8-815. General powers of trustee. — 1. A trustee, without authorization by the court, may exercise: (1) powers conferred by the terms of the trust; and (2) except as limited by the terms of the trust: (a) all powers over the trust property which an unmarried competent owner h…

456.8-816. Specific powers of trustee. — Without limiting the authority conferred by section 456.8-815, a trustee may: (1) collect trust property and accept or reject additions to the trust property from a settlor or any other person; (2) acquire or sell property in divided or un…

456.8-817. Distribution upon termination. — 1. 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…