Title 72, Title 72

(1) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust. (2) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value o…

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.

(1) A beneficiary may not commence a proceeding against a trustee for breach of trust more than 3 years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and inf…

A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.

If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss result…

(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (a) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the fiduciary duties of the trustee, the terms or p…

A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach unless: (1) the consent, release, or ratificat…

This chapter may be cited as the Montana Uniform Trust Code.

(1) Except as otherwise provided in the contract, a trustee is not 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 the contract disclosed the fiduciary capacity. (2) A trustee is …

(1) Unless personal liability is imposed in the contract, a trustee who in the trustee's fiduciary capacity 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's acquisit…

(1) 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 knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly e…

(1) 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: (a) that the trust exists and the date the trust instrument was executed; (b) the id…

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. Other than 72-38-120 through 72-38-123, nothing in this chapter affects…

As used in this chapter, unless the context clearly requires otherwise, the following definitions apply: (1) "Action", with respect to an act of a trustee, includes a failure to act. (2) "Ascertainable standard" means a standard relating to an individual's health, education, supp…

(1) Subject to subsection (2), a person has knowledge of or knows a fact if the person: (a) has actual knowledge of it; (b) has received a notice or notification of it; or (c) from all the facts and circumstances known to the person at the time in question, has reason to know it.…

(1) 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. (2) The terms of a trust prevail over any provision of this chapter except: (a) the requir…

The common law of trusts and principles of equity supplement this chapter except to the extent modified by this chapter or another statute of this state.

The meaning and effect of the terms of a trust are determined by: (1) the law of the jurisdiction designated in the terms unless the designation of that jurisdiction's law is contrary to a strong public policy of the jurisdiction having the most significant relationship to the ma…

(1) 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: (a) a trustee's principal place of business is located in or a trustee is…

(1) (a) Notice to a person under this chapter or the sending of a document to a person under this chapter must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. (b) Permissible methods of notice or f…

(1) Except as provided in 72-38-813, whenever notice to qualified beneficiaries of a trust is required under this chapter, the trustee shall also give notice to any other beneficiary who has sent the trustee a request for notice. (2) A charitable organization expressly designated…

In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

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 such records or signatures conform to the requirements of section 102 of the Electronic Signa…

(1) Except as provided in subsections (2) and (3), a state agency or state official may not impose any annual filing or reporting requirements on a charitable trust that are more stringent, restrictive, or expansive than the requirements authorized under Montana law. (2) Subsecti…

(1) For purposes of this section, "interested persons" means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court. (2) Except as otherwise provided in subsection (3), interested persons may enter into a b…

(1) This section relates only to conveyances of real property to or from a trust and supplements but does not modify other substantive provisions of Title 72, chapter 38, relating to the creation or validity of trusts. (2) Except as otherwise provided in Title 72, chapter 38, a c…

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.

(1) In this section, "settlor" means a person who executes a trust instrument. The term includes a person for which a fiduciary or agent is acting. (2) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned …

When the owner of property gratuitously transfers it and manifests in the trust instrument an intention that the transferee should hold the property in trust but the trust fails, the transferee holds the trust estate as a resulting trust for the transferor or the transferor's est…

When the owner of property gratuitously transfers it subject to a trust that is properly declared and that is fully performed without exhausting the trust estate, the trustee holds the surplus as a resulting trust for the transferor or the transferor's estate unless the transfero…

(1) When a transfer of property is made to one person and the purchase price is paid by another, a resulting trust arises in favor of the person who paid the purchase price. (2) Subsection (1) does not apply in any of the following circumstances: (a) whenever the party paying the…

A constructive trust arises when a person holding title to property is subject to an equitable duty to convey it to another on the ground that the person holding title would be unjustly enriched if the holder were permitted to retain it.

Resulting trusts and constructive trusts are considered to arise by operation of law and are valid under 72-38-407(3).

(1) Subject to 72-38-131(2), a trustee may give a notice of proposed action or notice of proposed inaction regarding a matter governed by the provisions of Title 72, chapter 3, part 4, 72-38-801 through 72-38-817, Title 72, chapter 38, part 9, or any other provision of law or thi…

(1) The trustee who elects to provide notice pursuant to this part shall provide notice of the proposed action or notice of proposed inaction to each qualified beneficiary as provided in 72-38-130 through 72-38-134. (2) Notwithstanding any other provisions of 72-38-130 through 72…

The notice of proposed action or notice of proposed inaction must state that it is given pursuant to this part and must include all of the following: (1) the name and mailing address of the trustee; (2) the name and telephone number of a person who may be contacted for additional…

(1) A qualified beneficiary may object to the proposed action or inaction by providing a written objection to the trustee at the address stated in the notice of proposed action or notice of proposed inaction within the time period specified in the notice of proposed action or not…

Sections 72-38-130 through 72-38-134 do not require a trustee to use these procedures prior to taking any action or deciding not to act.

(1) The district court having jurisdiction over the trust pursuant to this chapter has exclusive jurisdiction of proceedings concerning the internal affairs of trusts. (2) The district court having jurisdiction over the trust pursuant to this chapter has concurrent jurisdiction o…

In proceedings concerning the internal affairs of trusts commenced pursuant to this chapter, the court has all the powers of a district court exercising its general jurisdiction.

Subject to 72-38-204: (1) by accepting the trusteeship of a trust having its principal place of administration in this state, the trustee submits personally to the jurisdiction of the court under this chapter; (2) to the extent of their interests in the trust, all beneficiaries o…

The court may exercise jurisdiction in proceedings under Title 72, chapter 38, part 2, on any basis permitted by Title 72, chapter 38, part 2, or by Rule 4, Montana Rules of Civil Procedure.

(1) Except as otherwise provided in subsection (2), venue for a judicial proceeding involving a trust is in the county 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 the estate is not yet closed,…

(1) The pleadings described in 72-38-214 are permitted pleadings in judicial proceedings under this chapter. (2) Unless specifically provided to the contrary in this chapter or unless inconsistent with this chapter, the rules of civil procedure, including the rules concerning vac…

There is no right to a jury trial in proceedings under this chapter concerning the internal affairs of trusts.

Sections 72-38-209 through 72-38-212 apply to notice in proceedings commenced pursuant to Title 72, chapter 38, part 2.