§ 30-4-3-1.3 — Revocable trusts; powers of settlor; duties of trustees

Indiana § 30-4-3-1.3

• Jurisdiction: Indiana
• Art. 4: TRUST CODE
• Ch. 3: Rules Governing the Rights, Powers, Duties, Liabilities,

Text

3. (a) While a trust is revocable and the settlor
has the capacity to revoke the trust:
(1) the rights of the beneficiaries are subject to the control of; and
(2) the duties of the trustee are owed exclusively to;
the settlor.
(b) A settlor is presumed to have capacity for the purposes of
subsection (a) until the trustee receives from at least one (1) licensed
physician written certification that the settlor lacks the capacity to
revoke the trust.
(c) If a revocable trust has more than one (1) settlor, the duties of
the trustee are owed to all of the settlors having capacity to revoke the
trust.
(d) During the period the power may be exercised, the holder of a
power of withdrawal has the rights of a settlor of a revocable trust
under this section to the extent of the property subject to the power.
(e) If a trustee reasonably believes that a settlor of a revocable trust
lacks capacity to revoke the trust, the trustee is authorized to provide
information to the settlor's designated agent (even if the designated
agent is one (1) of two (2) or more trustees) or to any beneficiary who,
if the settlor were deceased, would be entitled to distributions from the
trust.
(f) A person who becomes a successor trustee of a revocable trust
upon the death, resignation, or incapacity of a trustee who was also a
settlor is not liable for any act or failure to act by the settlor while the
settlor was trustee.
(g) A successor trustee of a revocable trust who succeeds a trustee
who was also a settlor of the trust does not have a duty to:
(1) investigate any act or failure to act by the predecessor trustee;
(2) review any accounting of the predecessor trustee; or
(3) take action on account of any breach of trust by the
predecessor trustee.

Legislative History

As added by P.L.99-2013, SEC.9.