Section 30-4-3-6 - Duties of trustee(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.
Amended by P.L. 99-2024,SEC. 15, eff. 7/1/2024.Amended by P.L. 56-2020,SEC. 10, eff. 7/1/2020.Amended by P.L. 231-2019,SEC. 24, eff. 7/1/2019.Amended by P.L. 221-2019,SEC. 3, eff. 7/1/2019.Amended by P.L. 5-2015, SEC. 63, eff. 4/15/2015.Amended by P.L. 83-2014, SEC. 8, eff. 7/1/2014.Amended by P.L. 51-2014, SEC. 21, eff. 7/1/2014.(Formerly: Acts1971 , 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.