§ 30-4-3-29 — Removal, resignation, and appointment of trustees

Indiana § 30-4-3-29

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

Text

(a) A trustee may be removed as follows:
(1) By the court.
(2) By the person, if any, who by the terms of the trust is
authorized to remove the trustee.
(3) Unless the terms of the trust instrument provide otherwise, by
a beneficiary of the trust whose petition is granted by the court
under subsection (d).
(b) Unless the terms of the trust requires a different time, the trustee
may resign:
(1) if the trustee gives at least thirty (30) days notice to:
(A) the qualified beneficiaries;
(B) the settlor, if living; and
(C) all cotrustees; or
(2) with the approval of the court.
In approving a resignation, the court may issue orders and impose
conditions reasonably necessary for the protection of the trust property.
Any liability of a resigning trustee or of any sureties on the trustee's
bond for acts or omissions of the trustee is not discharged or affected
by the trustee's resignation.
(c) For good cause shown, the court may at any time appoint a
temporary trustee for such period of time, and to perform such duties,
as the court may direct.
(d) This subsection applies only to a trust executed after June 30,
1996. A beneficiary of a trust may petition the court for the removal of
a corporate trustee if there has been a change in control of the corporate
trustee after the date of the execution of the trust. The court may
remove the corporate trustee if the court determines the removal is in
the best interests of all the beneficiaries of the trust. For purposes of
this subsection a change in control of the corporate trustee occurs
whenever a person or group of persons acting in concert acquires the
beneficial ownership of an aggregate of at least twenty-five percent
(25%) of the outstanding shares of voting stock of:
(1) a trustee; or
(2) a corporation controlling a trustee;
after June 30, 1996.
(e) A trustee who has resigned or been removed shall expeditiously
deliver the trust property within the trustee's possession to the
cotrustee, successor trustee, or other person entitled to the trust
property. A trustee who has resigned or been removed has the duties of
trustee and the powers necessary to protect the trust property:
(1) unless a cotrustee remains in the office of trustee or the court
orders otherwise; and
(2) until the trust property is delivered to a successor trustee or
other person entitled to the trust property.
Formerly: Acts 1971, P.L.416, SEC.4. As amended by
P.L.199-1996, SEC.1; P.L.165-2002, SEC.6; P.L.238-2005,
SEC.38.