Title 59, Trusts

1. Subject to the intent of a donor, as expressed in the gift instrument and subject to subsection 4, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration …

1. Except as otherwise provided in a gift instrument or by law other than this chapter, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An i…

1. If the donor consents in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment, or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpos…

Compliance with this chapter is determined in light of the facts and circumstances existing at the time a decision is made or at the time action is taken, and not by hindsight.

This chapter applies to institutional funds existing on or established after April 22, 2009. As applied to institutional funds existing on April 22, 2009, this chapter governs only decisions made or actions taken on or after that date.

This chapter modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act [15 U.S.C. 7001 et seq.] but does not modify, limit, or supersede 15 U.S.C. 7001(a) or authorize electronic delivery of any of the notices described in 15 U.S.C. 7003(b).

As used in this chapter: 1. "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. 2. "Electronic record" means a record created, generated, sent, communicated, received, or stored by electronic…

This chapter must be construed and applied to: 1. Facilitate electronic estate planning documents and signatures consistent with other law; and 2. Be consistent with reasonable practices concerning electronic documents and signatures and continued expansion of those practices.

1. Except as provided in subsection 2, this chapter applies to an electronic nontestamentary estate planning document and an electronic signature on a nontestamentary estate planning document. 2. This chapter does not apply to a nontestamentary estate planning document if the doc…

The law of this state and principles of equity applicable to a nontestamentary estate planning document apply to an electronic nontestamentary estate planning document except as modified by this chapter.

1. This chapter does not require a nontestamentary estate planning document or signature on a nontestamentary estate planning document to be created, generated, sent, communicated, received, stored, or otherwise processed or used by electronic means or in electronic form. 2. A pe…

1. A nontestamentary estate planning document or a signature on a nontestamentary estate planning document may not be denied legal effect or enforceability because the document or signature is in electronic form. 2. If any other provision of law requires a nontestamentary estate …

1. An electronic nontestamentary estate planning document or electronic signature on an electronic nontestamentary estate planning document is attributable to a person if it was the act of the person. The act of the person may be shown in any manner, including by showing the effi…

If any other provision of law requires a signature or record to be notarized, acknowledged, verified, or made under oath, the requirement is satisfied with respect to an electronic nontestamentary estate planning document if an individual authorized to perform the notarization, a…

1. If any other provision of law bases the validity of a nontestamentary estate planning document on whether the document is signed, witnessed, or attested by another individual, the signature, witnessing, or attestation of that individual may be electronic. 2. As used in this su…

1. Except as provided in subsection 2, if any other provision of law requires an electronic nontestamentary estate planning document to be retained, transmitted, copied, or filed, the requirement is satisfied by retaining, transmitting, copying, or filing an electronic record tha…

An individual may create a certified paper copy of an electronic nontestamentary estate planning document by affirming under penalty of perjury before a notary public that the paper copy is a complete and accurate copy of the document.

Evidence relating to an electronic nontestamentary estate planning document or an electronic signature on the document may not be excluded in a proceeding solely because it is in electronic form.

In applying and construing this chapter, a court shall consider the promotion of uniformity of the law among the states that enact it.

This chapter modifies, limits, or supersedes the Electronic Signatures in Global and National Commerce Act, [15 U.S.C. Section 7001 et seq.] but does not modify, limit, or supersede 15 U.S.C. Section 7001(c), or authorize electronic delivery of any of the notices described in 15 …

In this chapter: 1. "Accounting period" means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins when an income interest begins or ends when an income interest ends…

1. In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of sections 59-04.2-04 through 59-04.2-08, a fiduciary: a. Shall administer a trust or estate in accordance with the terms of the trust or the will, eve…

1. A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be distributed to a beneficiary by referring to th…

1. The court may not order a fiduciary to change a decision to exercise or not to exercise a discretionary power conferred by this chapter unless the court determines that the decision was not made in good faith or was an abuse of the fiduciary's discretion. A fiduciary's decisio…

After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: 1. A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property spec…

1. Each beneficiary described in subsection 4 of section 59-04.2-04 is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one di…

1. An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income intere…

1. A trustee shall allocate an income receipt or disbursement other than one to which subsection 1 of section 59-04.2-04 applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or succe…

1. In this section, "undistributed income" means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal under the…

1. In this section, "entity" means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest other than a trust or estate to which section 59-0…

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest and shall allocate to principal an amount received as a distribution of principal from such a trust or es…

1. If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintai…

A trustee shall allocate to principal: 1. To the extent not allocated to income under this chapter, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming the trust or…

To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received …

1. An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income without any provision for amortization of…

1. Except as otherwise provided in subsection 2, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its trustee against loss for …

1. In this section, "payment" means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a payment made …

1. In this section, "liquidating asset" means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments during …

1. To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows: a. If received as nominal delay rental or nominal annual rent on a lease, a receipt must be allocate…

1. To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts: a. To income to the extent that the amount of timber removed from the land does not exceed the rate of growth …

1. In this section, "derivative" means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group of assets, o…

1. In this section, "asset-backed security" means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to …

A trustee shall make the following disbursements from income to the extent that they are not disbursements to which subdivision b or c of subsection 2 of section 59-04.2-04 applies: 1. One-half of the regular compensation of the trustee and of any person providing investment advi…

1. A trustee shall make the following disbursements from principal: a. The remaining one-half of the disbursements described in subsections 1 and 2 of section 59-04.2-24; b. All of the trustee's compensation calculated on principal as a fee for acceptance, distribution, or termin…

1. In this section, "depreciation" means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year. 2. A trustee may transfer to principal a reasonable amount of the net cash receipts from a princ…

1. If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal disbursements…