§ 30-4-3-6 — Duties of trustee

Indiana § 30-4-3-6

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

Text

(a) The trustee has a duty to administer a trust
according to the terms of the trust.
(b) Unless the terms of the trust or the provisions of section 1.3 of
this chapter provide otherwise, the trustee also has a duty to do the
following:
(1) Administer the trust in a manner consistent with IC 30-4-3.5.
(2) Take possession of and maintain control over the trust
property.
(3) Preserve the trust property.
(4) Make the trust property productive for both the income and
remainder beneficiary. As used in this subdivision, "productive"
includes the production of income or investment for potential
appreciation.
(5) Keep the trust property separate from the trustee's individual
property and separate from or clearly identifiable from property
subject to another trust.
(6) Maintain clear and accurate accounts with respect to the trust
estate.
(7) Except as provided in subsection (c), keep the following
beneficiaries reasonably informed about the administration of the
trust and of the material facts necessary for the beneficiaries to
protect their interests:
(A) A current income beneficiary.
(B) A beneficiary who will become an income beneficiary upon
the expiration of the term of the current income beneficiary, if
the trust has become irrevocable by:
(i) the terms of the trust instrument; or
(ii) the death of the settlor.
A trustee satisfies the requirements of this subdivision by
providing a beneficiary described in clause (A) or (B), upon the
beneficiary's written request, access to the trust's accounting and
financial records concerning the administration of trust property
and the administration of the trust.
(8) Upon:
(A) the trust becoming irrevocable:
(i) by the terms of the trust instrument; or
(ii) by the death of the settlor; and
(B) the written request of an income beneficiary or
remainderman;
promptly provide a copy of the complete trust instrument to the
income beneficiary or remainderman. This subdivision does not
prohibit the terms of the trust from requiring the trustee to
separately provide each beneficiary only the portions of the trust
instrument that describe or pertain to that beneficiary's interest in
the trust and the administrative provisions of the trust instrument
that pertain to all beneficiaries of the trust.
(9) Take whatever action is reasonable to realize on claims
constituting part of the trust property.
(10) Defend actions involving the trust estate.
(11) Supervise any person to whom authority has been delegated.
(12) Determine the trust beneficiaries by acting on information:
(A) the trustee, by reasonable inquiry, considers reliable; and
(B) with respect to heirship, relationship, survivorship, or any
other issue relative to determining a trust beneficiary.
(c) The terms of a trust may expand, restrict, eliminate, or otherwise
vary the right of a beneficiary to be informed of the beneficiary's
interest in a trust for a period of time, including a period of time related
to:
(1) the age of the beneficiary;
(2) the lifetime of a settlor or the spouse of a settlor;
(3) a term of years or a period of time ending on a specific date;
or
(4) a specific event that is certain to occur.
(d) During any period of time that the trust instrument restricts or
eliminates the right of a beneficiary to be informed of the beneficiary's
interest in a trust, a designated representative for the beneficiary:
(1) shall represent that beneficiary and bind that beneficiary's
interests for purposes of any judicial proceeding or nonjudicial
matter involving the trust unless the court finds, after a hearing
upon notice, that a conflict of interest exists between the
beneficiary and the designated representative;
(2) has the authority to initiate or defend and participate in any
proceeding relating to the trust under this article or under IC 30-2
on behalf of the beneficiary; and
(3) shall not disclose to the beneficiary the information provided
by the trustee unless the court orders disclosure or the trustee
agrees to the disclosure.
An alleged conflict of interest between a beneficiary and the
beneficiary's designated representative may be asserted to the court by
the beneficiary whose right to be informed of the beneficiary's interest
in a trust is restricted or eliminated in the trust instrument or by any
other person authorized to represent and bind that beneficiary's interest
under IC 30-4-6-10.5.
(e) If:
(1) a beneficiary is an adult and has not been adjudicated to be an
incapacitated person;
(2) the trust instrument restricts or eliminates the right of the
beneficiary to be informed of the beneficiary's interest in a trust;
and
(3) the beneficiary discovers material information about the
beneficiary's interest in the trust from sources other than the
trustee;
subsections (c) and (d) do not prohibit the beneficiary from demanding
or petitioning for an accounting or statement regarding the trust under
IC 30-4-5-12(c), from receiving a copy of all relevant portions of the
trust instrument, or from demanding and receiving, under subsection
(b)(7), other information about the trust and its administration that is
consistent with the content and scope of the information that the
beneficiary received from sources other than the trustee. The
beneficiary may also initiate and participate in any proceeding against
or with the trustee under this chapter.
Formerly: Acts 1971, P.L.416, SEC.4. As amended by
P.L.198-1996, SEC.1; P.L.137-1999, SEC.2; P.L.238-2005, SEC.32;
P.L.51-2014, SEC.21; P.L.83-2014, SEC.8; P.L.5-2015, SEC.63;
P.L.221-2019, SEC.3; P.L.231-2019, SEC.24; P.L.56-2020, SEC.10;
P.L.99-2024, SEC.15.