Section 7-401 Powers of fiduciary
[Text of section added by 2008, 521, Sec. 9 effective July 1, 2011. See 2008, 521, Sec. 44.]
Section 7-401. [Powers of Fiduciary.]
Except as restricted or otherwise provided by the will, deed or other instrument creating a trust or by an order in a formal proceeding, a trustee acting reasonably for the benefit of the interested persons may, without court authorization or confirmation, properly:
(1) hold and retain property of the trust including land in another state, until judging that disposition of the property should be made, and the property may be retained even though it includes property in which the trustee is personally interested;
(2) receive additions to the trust from fiduciaries or other sources;
(3) continue or participate in the operation of any business or other enterprise;
(4) acquire an undivided interest in property in which the trustee, in any fiduciary capacity, holds an undivided interest;
(5) invest and reinvest principal and income in any property the trustee determines, and without limiting the generality of the foregoing, invest in (i) shares of an investment company or in shares or undivided portions of any common trust fund established by the trustee and (ii) policies of life or endowment insurance or annuity contracts on the life of any beneficiary of the trust or of any person in whose life such beneficiary has an insurable interest;
(6) deposit trust funds in a state or federally insured financial institution, including 1 operated by the trustee;
(7) acquire or dispose of property, including land in another state, for cash or on credit, at public or private sale, and manage, develop, improve, exchange, partition, change the character of, abandon or demolish property;
(8) make ordinary or extraordinary repairs or alterations in buildings or other structures; demolish any improvements; and raze existing or erect new party walls or buildings;
(9) subdivide, develop, or dedicate land to public use; adjust boundaries; adjust differences in valuation on exchange or partition by giving or receiving considerations; and dedicate easements to public use without consideration;
(10) enter for any purpose into a lease as lessor or lessee, with or without option to purchase or renew, for a term within or extending beyond the term of the trust;
(11) enter into a lease or arrangement for exploration and removal of minerals or other natural resources or enter into a pooling or unitization agreement;
(12) grant an option involving disposition of an estate asset and take an option for the acquisition of any asset;
(13) vote a security, in person or by general or limited proxy;
(14) pay calls, assessments, and any other sums chargeable or accruing against or on account of securities;
(15) sell or exercise stock subscription or conversion rights;
(16) consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution, or liquidation of a corporation or other business enterprise;
(17) hold uncertificated securities as more fully provided in section 14B of chapter 203;
(18) insure the property of the trust against damage or loss and the trustee against liability with respect to third persons;
(19) borrow money with or without security to be repaid from the trust property or otherwise and in connection therewith mortgage or otherwise encumber any property on any conditions the trustee determines even if the term of the loan may extend beyond the term of the trust;
(20) pay or contest any claim; settle a claim by or against the trust or its property by compromise, arbitration, or otherwise; and release, in whole or in part, any claim belonging to the trust to the extent the claim is uncollectible;
(21) pay taxes, assessments, compensation of the trustee, and other expenses incurred in the collection, care, administration, and protection of the estate;
(22) allocate items of income or expense to either income or principal, as permitted or provided by law, including creation of reserves out of income for depreciation, obsolescence, or amortization, or for depletion in mineral or timber properties;
(23) allot in or towards satisfaction of any payment, distribution, or division, in any manner the trustee determines, any property at its then current fair market value;
(24) hold trusts and shares undivided or at any time hold them or any of them set apart one from another;
(25) pay any sum distributable to a beneficiary by paying the sum to the beneficiary or by paying the sum for the use of the beneficiary to the guardian, conservator or custodian of the beneficiary or, if none, to a relative or other person having custody of the beneficiary;
(26) employ persons, including attorneys, auditors, investment advisors, or agents, even though they are associated with the trustee, to advise or assist in the performance of administrative duties; act upon their recommendation without independent investigation, and instead of acting personally, employ agents to perform any act of administration, whether or not discretionary;
(27) prosecute or defend actions, claims, or proceedings in any jurisdiction for the protection of trust property and of the trustee in the performance of fiduciary duties; and
(28) execute and deliver all instruments that will accomplish or facilitate the exercise of the powers vested in the trustee.