§ 13-5-602 — Family trust companies; authorized actions and transactions; conflicts of interest

(a) In addition to the actions authorized by W.S. 13-5-601
and notwithstanding the other provisions of this chapter, while
acting as a fiduciary a family trust company may:
(i) Invest in a security of an investment company or
investment trust for which the family trust company, or a family
affiliate, provides services in a capacity other than as a
fiduciary;
(ii) Place a security transaction using a broker that
is a family affiliate;
(iii) Invest in an investment contract that is
purchased from an insurance company or carrier owned by or
affiliated with the family trust company or a family affiliate;
(iv) Enter into an agreement with a beneficiary or
settlor of a trust with respect to the appointment or
compensation of the family trust company or a family affiliate;
(v) Transact business with another trust, estate,
guardianship or conservatorship for which the family trust
company is a fiduciary or in which a beneficiary of a trust for
which the family trust company is a fiduciary has an interest;
(vi) Make an equity investment in a closely held
entity that may or may not be marketable and that is owned or
controlled, either directly or indirectly, by one (1) or more
family members or family affiliates;
(vii) Deposit money in a financial institution that
is owned or operated by a family affiliate;
(viii) Delegate the authority to conduct any
transaction or action pursuant to this section to an agent of
the family trust company or a family affiliate;
(ix) Purchase, sell, hold or invest in any security,
bond, real or personal property, stock or other asset of a
family affiliate;
(x) Loan money to or borrow money from:
(A) A beneficiary or settlor of a trust for
which the family trust company is acting as fiduciary;
(B) Another trust for which the family trust
company is acting as fiduciary; or
(C) A family affiliate.
(xi) Act as proxy in voting any shares of stock which
are assets of a trust for which the family trust company is
acting as fiduciary;
(xii) Exercise any powers of control with respect to
any interest in an entity that is an asset of a trust for which
the family trust company is acting as fiduciary, including,
without limitation, the appointment of officers or directors of
entities who are family affiliates; and
(xiii) Receive reasonable compensation for its
services or the services of a family affiliate.
(b) A family trust company shall consider the following
when undertaking a transaction or action authorized pursuant to
subsection (a) of this section:
(i) The interests of the beneficiaries of the trust
for which the family trust company is acting as fiduciary if
applicable; and
(ii) Whether the transaction or action complies with
the terms of the governing documents of the family trust company
establishing the fiduciary relationship, any applicable
judgments, judicial decrees or court orders and any applicable
consent agreements or releases.
(iii) Repealed by Laws 2019, Ch. 13, § 5.
(c) Except as otherwise provided in subsection (b) of this
section, nothing in this section prohibits a family trust
company from transacting business with or investing in any asset
of:
(i) A trust, estate, guardianship or conservatorship
for which the family trust company is a fiduciary;
(ii) A family affiliate; or
(iii) Any other company, agent, entity or person for
which a conflict of interest may exist.
(d) If a potential conflict of interest exists as to a
particular transaction between the family trust company, in its
capacity as a fiduciary and the family trust company in its
individual capacity, the transaction or action is not voidable
if it:
(i) Complies with the provisions of this section; or
(ii) Occurred before the family trust company entered
into the fiduciary relationship.
(e) A transaction by or action of a family trust company
authorized by this section is not voidable if:
(i) The transaction or action was authorized by the
terms of the governing documents of the family trust company;
(ii) The transaction or action was approved by a
court or was taken pursuant to a judicial decree or court order;
(iii) No interested person commenced a legal action
relating to the transaction or action pursuant to subsection (f)
of this section;
(iv) The transaction or action was authorized by a
valid consent agreement or release signed by all interested
persons to the transaction or action; or
(v) The transaction or action occurred before the
family trust company entered into the fiduciary relationship.
(f) A legal action by an interested person alleging that a
transaction or action by a family trust company is voidable
because of the existence of a conflict of interest must be
commenced within one (1) year of the date on which the
interested person discovered, or by the exercise of reasonable
diligence should have discovered, the facts in support of his or
her claim.
(g) Notwithstanding any other provisions of this chapter,
a family trust company is not required to obtain court approval
for any transaction that otherwise complies with the provisions
of this section.