501C.0801 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 chapter and all other applicable law. History: 2015 c 5 art 8 s 1
501C.0802 DUTY OF LOYALTY. (a) A trustee owes a duty of loyalty to the beneficiaries. A trustee shall not place the trustee’s own interests above those of the beneficiaries. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 501C.1012, a sale, encumbrance, or other transaction involving the […]
501C.0803 IMPARTIALITY. If a trust has two or more beneficiaries, the trustee shall administer the trust impartially, giving due regard to the beneficiaries’ respective interests. History: 2015 c 5 art 8 s 3
501C.0804 PRUDENT ADMINISTRATION. A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, and distribution requirements of the trust and all relevant circumstances. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution. History: 2015 c 5 art 8 s 4
501C.0807 DELEGATION BY TRUSTEE. (a) A trustee may delegate to any person, even if the person is associated with the trustee, 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) establishing the scope […]
501C.0808 DIRECTED TRUSTS. Subdivision 1. Definitions. (a) The definitions in this section apply to this section. (b) “Directing party” means any investment trust advisor, distribution trust advisor, or trust protector as provided in this section. (c) “Distribution trust advisor” means one or more persons given authority by the governing instrument to direct, consent to, veto, […]
501C.0809 CONTROL, PROTECTION, AND DELIVERY OF TRUST PROPERTY. (a) A trustee shall take reasonable steps to compel a former trustee or other person to deliver the trust’s tangible personal property and evidence of ownership of other trust property to the trustee. (b) A trustee shall take reasonable steps to take control of and protect the […]
501C.0810 RECORD KEEPING 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) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of […]
501C.0811 ENFORCEMENT AND DEFENSE OF CLAIMS. (a) A trustee shall take reasonable steps to redress a breach of trust known to the trustee to have been committed by a former trustee. (b) A trustee shall take reasonable steps to enforce claims of the trust known to the trustee and to defend claims against the trust. […]
501C.0813 DUTY TO INFORM AND REPORT. (a) A trustee shall keep the qualified beneficiaries of an irrevocable trust reasonably informed about the administration of the trust and of the material facts necessary to protect their interests. Unless unreasonable under the circumstances, a trustee shall promptly respond to a beneficiary’s request for information related to the […]
501C.0814 DISCRETIONARY POWERS; TAX SAVINGS. (a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as “absolute,” “sole,” or “uncontrolled,” the trustee must exercise a discretionary power in good faith, in accordance with the terms and purposes of the trust and, in the […]
501C.0815 GENERAL POWERS OF TRUSTEE. (a) 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: (i) all powers over the trust property which an unmarried competent owner has over individually owned property; (ii) any other […]
501C.0816 SPECIFIC POWERS OF TRUSTEE. Without limiting the authority conferred by section 501C.0815, a trustee may: (1) collect trust property and accept or reject additions to the trust property from a settlor or another person; (2) acquire or sell property, for cash or on credit, at public or private sale; (3) exchange, partition, or otherwise […]
501C.0817 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 notify the trustee of an objection within 30 days after the proposal was sent […]
