Uniform Trust Code

Article 8. Duties and Powers of Trustee

General Comment

This article states the fundamental duties of a trustee and lists the trustee’s powers. The duties listed are not new, but how the particular duties are formulated and applied has changed over the years. This article was drafted where possible to conform with the 1994 Uniform Prudent Investor Act, which has been enacted in approximately two thirds of the States. The Uniform Prudent Investor Act prescribes a trustee’s responsibilities with respect to the management and investment of trust property. The Uniform Trust Code also addresses a trustee’s duties with respect to distribution to beneficiaries.

Because of the widespread adoption of the Uniform Prudent Investor Act, it was decided not to disassemble and fully integrate the Prudent Investor Act into the Uniform Trust Code. Instead, States enacting the Uniform Trust Code are encouraged to recodify their version of the Prudent Investor Act by reenacting it as Article 9 of this Code rather than leaving it elsewhere in their statutes. Where the Uniform Trust Code and Uniform Prudent Investor Act overlap, States should enact the provisions of this article and not enact the duplicative provisions of the Prudent Investor Act. Sections of this article which overlap with the Prudent Investor Act are Sections 802 (duty of loyalty), 803 (impartiality), 805 (costs of administration), 806 (trustee’s skills), and 807 (delegation). For more complete instructions on how to enact the Uniform Prudent Investor Act as part of this Code, see the General Comment to Article 9.

All of the provisions of this article may be overridden in the terms of the trust except for certain aspects of the trustee’s duty to keep the beneficiaries informed of administration (see Section 105(b)(8)-(9)), and the trustee’s fundamental obligation to act in good faith, in accordance with the purposes of the trust, and for the benefit of the beneficiaries (see Section 105(b)(2)-(3)).

Section 801. Duty to Administer Trust

Section 802. Duty of Loyalty

Section 803. Impartiality

Section 804. Prudent Administration

Section 805. Costs of Administration

Section 806. Trustee's Skills

Section 807. Delegation by Trustee

Section 808. Powers to Direct

Section 809. Control and Protection of Trust Property

Section 810. Recordkeeping and Identification of Trust Property

Section 811. Enforcement and Defense of Claims

Section 812. Collecting Trust Property

Section 813. Duty to inform and Report

Section 814. Discretionary Powers; Tax Savings

Section 815. General Powers of Trustee

Section 816. Specific Powers of Trustee

Section 817. Distribution Upon Termination