58a-816. Specific powers of trustee.

58a-816

Chapter 58a.--KANSAS UNIFORM TRUST CODE Article 8.--DUTIES AND POWERS OF TRUSTEE

      58a-816.   Specific powers oftrustee.Without limitingthe authorityconferred by K.S.A. 58a-815, and amendments thereto, a trustee may:

      (1)   Collect trust property and accept or reject additions to the trustproperty from asettlor or any other person;

      (2)   acquire or sell property, for cash or on credit, at public or privatesale;

      (3)   exchange, partition, or otherwise change the character of trust property;

      (4)   deposit trust money in an account in a regulated financial-serviceinstitution;

      (5)   borrow money, with or without security, and mortgage or pledge trustproperty fora period within or extending beyond the duration of the trust;

      (6)   with respect to an interest in a proprietorship, partnership, limitedliability company,business trust, corporation, or other form of business or enterprise, continuethe business or otherenterprise and take any action that may be taken by shareholders, members, orproperty owners,including merging, dissolving, or otherwise changing the form of businessorganization orcontributing additional capital;

      (7)   with respect to stocks or other securities, exercise the rights of anabsolute owner,including the right to:

      (A)   Vote, or give proxies to vote, with or without power of substitution, orenterinto or continue a voting trust agreement;

      (B)   hold a security in the name of a nominee or in other form withoutdisclosureof the trust so that title may pass by delivery;

      (C)   pay calls, assessments, and other sums chargeable or accruing against thesecurities, and sell or exercise stock subscription or conversion rights; and

      (D)   deposit the securities with a depositary or other regulatedfinancial-serviceinstitution;

      (8)   with respect to an interest in real property, construct, or make ordinaryorextraordinary repairs to, alterations to, or improvements in, buildings orother structures, demolishimprovements, raze existing or erect new party walls or buildings, subdivide ordevelop land,dedicate land to public use or grant public or private easements and make orvacate plats and adjustboundaries;

      (9)   enter into a lease for any purpose as lessor or lessee, including a leaseor otherarrangement for exploration and removal of natural resources, with or withoutthe option to purchaseor renew, for a period within or extending beyond the duration of the trust;

      (10)   grant an option involving a sale, lease, or other disposition of trustproperty oracquire an option for the acquisition of property, including an optionexercisable beyond the durationof the trust and exercise an option so acquired;

      (11)   insure the property of the trust against damage or loss and insure thetrustee, thetrustee's agents, and beneficiaries against liability arising from theadministration of the trust;

      (12)   abandon or decline to administer property of no value or of insufficientvalue tojustify its collection or continued administration;

      (13)   with respect to possible liability for violation of environmental law:

      (A)   Inspect or investigate property the trustee holds or has been asked tohold, orproperty owned or operated by an organization in which the trustee holds or hasbeen asked to holdan interest, for the purpose of determining the application of environmentallaw with respect to theproperty;

      (B)   take action to prevent, abate, or otherwise remedy any actual orpotentialviolation of any environmental law affecting property held directly orindirectly by the trustee,whether taken before or after the assertion of a claim or the initiation ofgovernmental enforcement;

      (C)   decline to accept property into trust or disclaim any power with respecttoproperty that is or may be burdened with liability for violation ofenvironmental law;

      (D)   compromise claims against the trust which may be asserted for an allegedviolation of environmental law; and

      (E)   pay the expense of any inspection, review, abatement, or remedial actiontocomply with environmental law;

      (14)   pay or contest any claim, settle a claim by or against the trust, andrelease, inwhole or in part, a claim belonging to the trust;

      (15)   pay taxes, assessments, compensation of the trustee and of employees andagentsof the trust and other expenses incurred in the administration of the trust;

      (16)   exercise elections with respect to federal, state, and local taxes;

      (17)   select a mode of payment under any employee benefit or retirement plan,annuity,or life insurance payable to the trustee, exercise rights thereunder, includingexercise of the right toindemnification for expenses and against liabilities, and take appropriateaction to collect theproceeds;

      (18)   make loans out of trust property, including loans to a beneficiary onterms andconditions the trustee considers to be fair and reasonable under thecircumstances, and the trusteehas a lien on future distributions for repayment of those loans;

      (19)   pledge trust property to guarantee loans made by others to thebeneficiary;

      (20)   appoint a trustee to act in another jurisdiction with respect to trustproperty locatedin the other jurisdiction, confer upon the appointed trustee all of the powersand duties of theappointing trustee, require that the appointed trustee furnish security, andremove any trustee soappointed;

      (21)   pay an amount distributable to a beneficiary who is under a legaldisability or whothe trustee reasonably believes is incapacitated, by paying it directly to thebeneficiary or applyingit for the beneficiary's benefit, or by:

      (A)   Paying it to the beneficiary's conservator or, if the beneficiary doesnot havea conservator, the beneficiary's guardian;

      (B)   paying it to the beneficiary's custodian, attorney-in-fact, custodialtrustee or other person with legal authorityto receive such funds for the benefit of the beneficiary;

      (C)   if the trustee does not know of a conservator, guardian, custodian, orcustodial trustee, paying it to an adult relative or other person having legalor physical care orcustody of the beneficiary, to be expended on the beneficiary's behalf; or

      (D)   managing it as a separate fund on the beneficiary's behalf, subject tothebeneficiary's continuing right to withdraw the distribution;

      (22)   on distribution of trust property or the division or termination of atrust, makedistributions in divided or undivided interests, allocate particular assets inproportionate ordisproportionate shares, value the trust property for those purposes, andadjust for resultingdifferences in valuation;

      (23)   resolve a dispute concerning the interpretation of the trust or itsadministration bymediation, arbitration, or other procedure for alternative dispute resolution;

      (24)   prosecute or defend an action, claim or judicial proceeding in anyjurisdiction toprotect trust property and the trustee in the performance of the trustee'sduties;

      (25)   sign and deliver contracts and other instruments that are useful toachieve orfacilitate the exercise of the trustee's powers; and

      (26)   on termination of the trust, exercise the powers appropriate to wind uptheadministration of the trust and distribute the trust property to the personsentitled to it.

      History:   L. 2002, ch. 133, § 73; Jan. 1, 2003.