Chapter 20Trust Administration

Trustee - Powers Duties & Liability

Overview of Trust Administration

$Accept Trusteeship$Post Bond

$Register Trust$Possess and Safeguard Trust Property

$Identify and Locate Beneficiaries$Follow Settlor’s Instructions

$Act as Fiduciary$Support and Defend Trust

Trust Investments & Standard of Care

$Selection of Investments$Duty to Diversify

$Exculpatory Clauses$Directory Provision

$Duty to Review Investments

Trustee Powers

$Sources of Powers$Delegation of Powers

Trustee Powers

$Sources of Powers$Delegation of Powers

Trust Distributions

$Standard of Care$Competent Adult Beneficiary

$Minor or Incapacitated Beneficiary

Duty of Loyalty

$Buying and Selling Trust Property$Borrowing Trust Property

$Purchase of Common Investments$Transfers Between Trusts$Dealings with Beneficiaries

$Self-Employment$Ramifications of Breach of Loyalty Duties

$Permitted Self-Dealing$Loyalty and Investment Duties Compared

Liability of Trustee to Third Parties

$Contract Liability$Tort Liability

$Liability as Property Owner

Allocation of Receipts & Expenses

$General Allocation Rules$Corporate Distributions

$Wasting Assets$Business and Farming Operations$Bond Premiums and Discounts

$Underproductive Property$Rights of Income Beneficiaries

$Apportionment of Income Among Beneficiaries$Allocation of Expenses$Unitrust Approach

Accountings

Compensation

Trust Modifications

$By Court$By Parties

Trust Termination

$Express Terms of Trust$Revocation by Settlor

$Termination by Beneficiaries$Merger

$Lack of Property$Uneconomic to Continue Trust

$Court Order$Duties of Trustee upon Termination

Reformation

Conclusion