75-7-814 - Specific powers of trustee.
75-7-814. Specific powers of trustee.
(1) Without limiting the authority conferred by Section 75-7-813, a trustee may:
(a) collect trust property and accept or reject additions to the trust property from a settloror any other person;
(b) acquire or sell property, for cash or on credit, at public or private sale;
(c) exchange, partition, or otherwise change the character of trust property;
(d) deposit trust money in an account in a regulated financial service institution;
(e) borrow money, with or without security from any financial institution, including afinancial institution that is serving as a trustee or one of its affiliates, and mortgage or pledgetrust property for a period within or extending beyond the duration of the trust;
(f) with respect to an interest in a proprietorship, partnership, limited liability company,business trust, corporation, or other form of business or enterprise, continue the business or otherenterprise and take any action that may be taken by shareholders, members, or property owners,including merging, dissolving, or otherwise changing the form of business organization orcontributing additional capital;
(g) with respect to stocks or other securities, exercise the rights of an absolute owner,including the right to:
(i) vote, or give proxies to vote, with or without power of substitution, or enter into orcontinue a voting trust agreement;
(ii) hold a security in the name of a nominee or in other form without disclosure of thetrust so that title may pass by delivery;
(iii) pay calls, assessments, and other sums chargeable or accruing against the securities,and sell or exercise stock subscription or conversion rights; and
(iv) deposit the securities with a depositary or other regulated financial serviceinstitution;
(h) with respect to an interest in real property, construct, or make ordinary orextraordinary repairs to, alterations to, or improvements in, buildings or other structures,demolish improvements, raze existing or erect new party walls or buildings, subdivide or developland, dedicate land to public use or grant public or private easements, and make or vacate platsand adjust boundaries;
(i) enter into a lease for any purpose as lessor or lessee, including a lease or otherarrangement for exploration and removal of natural resources, with or without the option topurchase or renew, for a period within or extending beyond the duration of the trust;
(j) grant an option involving a sale, lease, or other disposition of trust property or acquirean option for the acquisition of property, including an option exercisable beyond the duration ofthe trust, and exercise an option so acquired;
(k) insure the property of the trust against damage or loss and insure the trustee, thetrustee's agents, and beneficiaries against liability arising from the administration of the trust;
(l) abandon or decline to administer property of no value or of insufficient value tojustify its collection or continued administration;
(m) with respect to possible liability for violation of environmental law:
(i) inspect or investigate property the trustee holds or has been asked to hold, or propertyowned or operated by an organization in which the trustee holds or has been asked to hold aninterest, for the purpose of determining the application of environmental law with respect to theproperty;
(ii) take action to prevent, abate, or otherwise remedy any actual or potential violation ofany environmental law affecting property held directly or indirectly by the trustee, whether takenbefore or after the assertion of a claim or the initiation of governmental enforcement;
(iii) decline to accept property into trust or disclaim any power with respect to propertythat is or may be burdened with liability for violation of environmental law;
(iv) compromise claims against the trust which may be asserted for an alleged violationof environmental law; and
(v) pay the expense of any inspection, review, abatement, or remedial action to complywith environmental law;
(n) pay or contest any claim, settle a claim by or against the trust, and release, in whole orin part, a claim belonging to the trust;
(o) pay taxes, assessments, compensation of the trustee and of employees and agents ofthe trust, and other expenses incurred in the administration of the trust;
(p) exercise elections with respect to federal, state, and local taxes;
(q) select a mode of payment under any employee benefit or retirement plan, annuity, orlife insurance payable to the trustee, exercise rights thereunder, including exercise of the right toindemnification for expenses and against liabilities, and take appropriate action to collect theproceeds;
(r) make loans out of trust property, including loans to a beneficiary on terms andconditions the trustee considers to be fair and reasonable under the circumstances, and the trusteehas a lien on future distributions for repayment of those loans;
(s) pledge trust property to guarantee loans made by others to the beneficiary;
(t) appoint a trustee to act in another jurisdiction with respect to trust property located inthe other jurisdiction, confer upon the appointed trustee all of the powers and duties of theappointing trustee, require that the appointed trustee furnish security, and remove any trustee soappointed;
(u) pay an amount distributable to a beneficiary who is under a legal disability or who thetrustee reasonably believes is incapacitated, by paying it directly to the beneficiary or applying itfor the beneficiary's benefit, or by:
(i) paying it to the beneficiary's conservator or, if the beneficiary does not have aconservator, the beneficiary's guardian;
(ii) paying it to the beneficiary's custodian under Title 75, Chapter 5a, Uniform Transfersto Minors Act;
(iii) if the trustee does not know of a conservator, guardian, custodian, or custodialtrustee, paying it to an adult relative or other person having legal or physical care or custody ofthe beneficiary, to be expended on the beneficiary's behalf; or
(iv) managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary'scontinuing right to withdraw the distribution;
(v) on distribution of trust property or the division or termination of a trust, makedistributions in divided or undivided interests, allocate particular assets in proportionate ordisproportionate shares, value the trust property for those purposes, and adjust for resultingdifferences in valuation;
(w) resolve a dispute concerning the interpretation of the trust or its administration bymediation, arbitration, or other procedure for alternative dispute resolution;
(x) prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to
protect trust property and the trustee in the performance of the trustee's duties;
(y) sign and deliver contracts and other instruments that are useful to achieve or facilitatethe exercise of the trustee's powers; and
(z) on termination of the trust, exercise the powers appropriate to finalize theadministration of the trust and distribute the trust property to the persons entitled to it.
(2) A trustee may delegate investment and management functions that a prudent trusteeof comparable skills could properly delegate under the circumstances.
(a) The trustee shall exercise reasonable care, skill, and caution in:
(i) selecting the agent;
(ii) establishing the scope and terms of the delegation consistent with the purposes of thetrust; and
(iii) periodically reviewing the agent's actions to monitor the agent's performance andcompliance with the terms of the delegation.
(b) In performing a delegated function, an agent has a duty to the trust to exercisereasonable care to comply with the terms of the delegation.
(c) A trustee who complies with the requirements of this Subsection (2) is not liable tothe beneficiaries or to the trust for the decisions or actions of the agent to whom the function wasdelegated.
(3) The trustee may exercise the powers set forth in this section and in the trust either inthe name of the trust or in the name of the trustee as trustee, specifically including the right totake title, to encumber or convey assets, including real property, in the name of the trust. ThisSubsection (3) applies to a trustee's exercise of trust powers. After May 11, 2010, for recordingpurposes, the name of the trustee, the address of the trustee, and the name and date of the trust,shall be included on all recorded documents affecting real property to which the trust is a party ininterest.
Amended by Chapter 93, 2010 General Session