(Last Revised or Amended in 2010) - Uniform Law …

1 Uniform trust code (Last Revised or Amended in 2010) Drafted by theNATIONAL CONFERENCE OF COMMISSIONERSON Uniform STATE LAWSand by itAPPROVED AND RECOMMENDED FOR ENACTMENTIN ALL THE STATESat itsANNUAL CONFERENCEMEETING IN ITS ONE-HUNDRED-AND-NINTH YEARST. AUGUSTINE, FLORIDAJULY 28 AUGUST 4, 2000 WITH PREFATORY NOTE AND COMMENTSC opyright 2000, 2010 ByNATIONAL CONFERENCE OF COMMISSIONERSON Uniform STATE LAWSJ anuary 15, 2013 ABOUT NCCUSLThe National Conference of Commissioners on Uniform State Laws (NCCUSL), now in its114 year, provides states with non-partisan, well-conceived and well-drafted legislation thatthbrings clarity and stability to critical areas of state statutory members must be lawyers, qualified to practice law. They are practicing lawyers,judges, legislators and legislative staff and law professors, who have been appointed by stategovernments as well as the District of Columbia, Puerto Rico and the Virgin Islands toresearch, draft and promote enactment of Uniform state laws in areas of state law whereuniformity is desirable and practical.

2 NCCUSL strengthens the federal system by providing rules and procedures that areconsistent from state to state but that also reflect the diverse experience of the states. NCCUSL statutes are representative of state experience, because the organization is madeup of representatives from each state, appointed by state government. NCCUSL keeps state law up-to-date by addressing important and timely legal issues. NCCUSL s efforts reduce the need for individuals and businesses to deal with differentlaws as they move and do business in different states. NCCUSL s work facilitates economic development and provides a legal platform forforeign entities to deal with citizens and businesses. NCCUSL Commissioners donate thousands of hours of their time and legal and draftingexpertise every year as a public service, and receive no salary or compensation for theirwork.

3 NCCUSL s deliberative and uniquely open drafting process draws on the expertise ofcommissioners, but also utilizes input from legal experts, and advisors and observersrepresenting the views of other legal organizations or interests that will be subject to theproposed laws. NCCUSL is a state-supported organization that represents true value for the states,providing services that most states could not otherwise afford or COMMITTEE TO AMEND Uniform trust CODEMAURICE A. HARTNETT, III, Delaware Supreme Court, 144 Cooper Road, Dover, DE 19901,ChairFRANK W. DAYKIN, 4745 Giles Way, Carson City, NV 89704, Committee Member andCommittee on Style LiaisonE. EDWIN ECK, II, University of Montana, School of Law, Missoula, MT 59812 JOHN H. LANGBEIN, Yale Law School, Box 208215, New Haven, CT 06520 GLEE S. SMITH, Box 360, 111 E. 8th, Larned, KS 67550 NATHANIEL STERLING, Law Revision Commission, Suite D-1, 4000 Middlefield Road, PaloAlto, CA 94303 RICHARD V.

4 WELLMAN, University of Georgia, School of Law, Athens, GA 30602 DAVID M. ENGLISH, University of Missouri School of Law, Missouri and Conley Avenues,Columbia, MO 65211, ReporterEX OFFICIOFRED H. MILLER, University of Oklahoma, College of Law, 300 Timberdell Rd., Room 3056, Norman, OK 73019, PresidentREX BLACKBURN, 1673 West Shoreline Dr., Suite 200, Box 7808, Boise, ID 83702,Division ChairAMERICAN BAR ASSOCIATION ADVISORJOSEPH KARTIGANER, 812 Fifth Ave., New York, NY 10021, American Bar AssociationAdvisorEXECUTIVE DIRECTORWILLIAM H. HENNING, University of Alabama School of Law, Box 870382, Tuscaloosa, AL 35487-0382, Executive DirectorWILLIAM J. PIERCE, 1505 Roxbury Rd., Ann Arbor, MI 48104, Executive Director EmeritusCopies of this code may be obtained from:NATIONAL CONFERENCE OF COMMISSIONERSON Uniform STATE LAWS211 E. Ontario Street, Suite 1300 Chicago, Illinois 60611312 trust CODETABLE OF CONTENTSPREFATORY 1 GENERAL PROVISIONS AND DEFINITIONSSECTION 101.

5 SHORT 102. 103. 104. 105. DEFAULT AND MANDATORY 106. COMMON LAW OF TRUSTS; PRINCIPLES OF 107. GOVERNING 108. PRINCIPAL PLACE OF 109. METHODS AND WAIVER OF 110. OTHERS TREATED AS QUALIFIED 111. NONJUDICIAL SETTLEMENT 112. RULES OF [SECTION 113. INSURABLE INTEREST OF 2 JUDICIAL PROCEEDINGSSECTION 201. ROLE OF COURT IN ADMINISTRATION OF 202. JURISDICTION OVER TRUSTEE AND 203. SUBJECT-MATTER 204. 3 REPRESENTATIONSECTION 301. REPRESENTATION: BASIC 302. REPRESENTATION BY HOLDER OF GENERAL TESTAMENTARYPOWER OF 303. REPRESENTATION BY FIDUCIARIES AND 304. REPRESENTATION BY PERSON HAVING SUBSTANTIALLYIDENTICAL 305. APPOINTMENT OF 4 CREATION, VALIDITY, MODIFICATION,AND TERMINATION OF TRUSTSECTION 401. METHODS OF CREATING 402. REQUIREMENTS FOR 403. TRUSTS CREATED IN OTHER 404. trust 405.]

6 CHARITABLE PURPOSES; 406. CREATION OF trust INDUCED BY FRAUD, DURESS, OR 407. EVIDENCE OF ORAL 408. trust FOR CARE OF 409. NONCHARITABLE trust WITHOUT ASCERTAINABLE 410. MODIFICATION OR TERMINATION OF trust ; PROCEEDINGS FORAPPROVAL OR 411. MODIFICATION OR TERMINATION OF NONCHARITABLEIRREVOCABLE trust BY 412. MODIFICATION OR TERMINATION BECAUSE OF UNANTICIPATEDCIRCUMSTANCES OR INABILITY TO ADMINISTER trust 413. CY 414. MODIFICATION OR TERMINATION OF UNECONOMIC 415. REFORMATION TO CORRECT 416. MODIFICATION TO ACHIEVE SETTLOR S TAX 417. COMBINATION AND DIVISION OF 5 CREDITOR S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTSSECTION 501. RIGHTS OF BENEFICIARY S CREDITOR OR 502. SPENDTHRIFT 503. EXCEPTIONS TO SPENDTHRIFT 504. DISCRETIONARY TRUSTS; EFFECT OF 505. CREDITOR S CLAIM AGAINST 506. OVERDUE 507.

7 PERSONAL OBLIGATIONS OF 6 REVOCABLE TRUSTSSECTION 601. CAPACITY OF SETTLOR OF REVOCABLE 602. REVOCATION OR AMENDMENT OF REVOCABLE 603. SETTLOR S POWERS; POWERS OF 604. LIMITATION ON ACTION CONTESTING VALIDITY OF REVOCABLETRUST; DISTRIBUTION OF trust 7 OFFICE OF TRUSTEESECTION 701. ACCEPTING OR DECLINING 702. TRUSTEE S 703. 704. VACANCY IN TRUSTEESHIP; APPOINTMENT OF 705. RESIGNATION OF 706. REMOVAL OF 707. DELIVERY OF PROPERTY BY FORMER 708. COMPENSATION OF 709. REIMBURSEMENT OF 8 DUTIES AND POWERS OF TRUSTEESECTION 801. DUTY TO ADMINISTER 802. DUTY OF 803. 804. PRUDENT 805. COSTS OF 806. TRUSTEE S 807. DELEGATION BY 808. POWERS TO 809. CONTROL AND PROTECTION OF trust 810. RECORDKEEPING AND IDENTIFICATION OF trust 811. ENFORCEMENT AND DEFENSE OF 812. COLLECTING trust 813. DUTY TO INFORM AND 814.

8 DISCRETIONARY POWERS; TAX 815. GENERAL POWERS OF 816. SPECIFIC POWERS OF 817. DISTRIBUTION UPON 9 Uniform PRUDENT INVESTOR ACTARTICLE 10 LIABILITY OF TRUSTEES AND RIGHTSOF PERSONS DEALING WITH TRUSTEESECTION 1001. REMEDIES FOR BREACH OF 1002. DAMAGES FOR BREACH OF 1003. DAMAGES IN ABSENCE OF 1004. ATTORNEY S FEES AND 1005. LIMITATION OF ACTION AGAINST 1006. RELIANCE ON trust 1007. EVENT AFFECTING ADMINISTRATION OR 1008. EXCULPATION OF 1009. BENEFICIARY S CONSENT, RELEASE, OR 1010. LIMITATION ON PERSONAL LIABILITY OF 1011. INTEREST AS GENERAL 1012. PROTECTION OF PERSON DEALING WITH 1013. CERTIFICATION OF 11 MISCELLANEOUS PROVISIONSSECTION 1101. UNIFORMITY OF APPLICATION AND 1102. ELECTRONIC RECORDS AND 1103. SEVERABILITY 1104. EFFECTIVE 1105. 1106. APPLICATION TO EXISTING trust CODEPREFATORY NOTEThe Uniform trust code (2000) is the first national codification of the law of trusts.

9 Theprimary stimulus to the Commissioners drafting of the Uniform trust code is the greater use oftrusts in recent years, both in family estate planning and in commercial transactions, both in theUnited States and internationally. This greater use of the trust , and consequent rise in the numberof day-to-day questions involving trusts, has led to a recognition that the trust law in many Statesis thin. It has also led to a recognition that the existing Uniform Acts relating to trusts, whilenumerous, are fragmentary. The Uniform trust code will provide States with precise,comprehensive, and easily accessible guidance on trust law questions. On issues on which Statesdiverge or on which the law is unclear or unknown, the code will for the first time provide auniform rule. The code also contains a number of innovative Rule: Most of the Uniform trust code consists of default rules that apply only ifthe terms of the trust fail to address or insufficiently cover a particular issue.

10 Pursuant to Section105, a drafter is free to override a substantial majority of the code s provisions. The exceptionsare scheduled in Section 105(b).Innovative Provisions: Much of the Uniform trust code is a codification of thecommon law of trusts. But the code does contain a number of innovative provisions. Amongthe more significant are specification of the rules of trust law that are not subject to override inthe trust s terms (Section 105), the inclusion of a comprehensive article on representation ofbeneficiaries (Article 3), rules on trust modification and termination that will enhance flexibility(Sections 410-417), and the inclusion of an article collecting the special rules pertaining torevocable trusts (Article 6).Models for Drafting: While the Uniform trust code is the first comprehensive UniformAct on the subject of trusts, comprehensive trust statutes are already in effect in several States.