CHAPTER 59-15OFFICE OF TRUSTEE59-15-01. (701) Accepting or declining trusteeship.1.Except as otherwise provided in subsection 3, a person designated as trustee<br>accepts the trusteeship by substantially complying with a method of acceptance<br>provided in the terms of the trust or, if the terms of the trust do not provide a method<br>or the method provided in the terms is not expressly made exclusive, by accepting<br>delivery of the trust property, exercising powers or performing duties as trustee, or<br>otherwise indicating acceptance of the trusteeship.2.A person designated as trustee who has not yet accepted the trusteeship may<br>decline the trusteeship. A designated trustee who does not accept the trusteeship<br>within a reasonable time after knowing of the designation is deemed to have<br>declined the trusteeship.3.A person designated as trustee, without accepting the trusteeship, may act to<br>preserve the trust property if, within a reasonable time after acting, the person sends<br>a declination of the trusteeship to the settlor or, if the settlor is dead or lacks<br>capacity, to a qualified beneficiary and inspect or investigate trust property to<br>determine potential liability under environmental or other law or for any other<br>purpose.59-15-02. (702) Trustee's bond.1.A trustee shall give bond to secure performance of the trustee's duties only if the<br>court finds that a bond is needed to protect the interests of the beneficiaries or is<br>required by the terms of the trust and the court has not dispensed with the<br>requirement.2.The court may specify the amount of a bond, its liabilities, and whether sureties are<br>necessary. The court may modify or terminate a bond at any time.3.A bank or trust company qualified to act as a trustee in this state need not give bond,<br>even if required by the terms of the trust.59-15-03. (703) Cotrustees.1.Cotrustees who are unable to reach a unanimous decision may act by majority<br>decision.2.If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the<br>trust.3.A cotrustee must participate in the performance of a trustee's function unless the<br>cotrustee is unavailable to perform the function because of absence, illness,<br>disqualification under other law, or other temporary incapacity or the cotrustee has<br>properly delegated the performance of the function to another trustee.4.If a cotrustee is unavailable to perform duties because of absence, illness,<br>disqualification under other law, or other temporary incapacity, and prompt action is<br>necessary to achieve the purposes of the trust or to avoid injury to the trust property,<br>the remaining cotrustee or a majority of the remaining cotrustees may act for the<br>trust.5.A trustee may delegate to a cotrustee the performance of any function other than a<br>function that the terms of the trust expressly require to be performed by the trusteesPage No. 1jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation<br>previously made.6.Except as otherwise provided in subsection 7, a trustee who does not join in an<br>action of another trustee is not liable for the action.7.Each trustee shall exercise reasonable care to prevent a cotrustee from committing<br>a serious breach of trust and compel a cotrustee to redress a serious breach of trust.8.A dissenting trustee who joins in an action at the direction of the majority of the<br>trustees and who notified any cotrustee of the dissent at or before the time of the<br>action is not liable for the action unless the action is a serious breach of trust.59-15-04. (704) Vacancy in trusteeship - Appointment of successor.1.A vacancy in a trusteeship occurs if a person designated as trustee declines the<br>trusteeship, a person designated as trustee cannot be identified, cannot be located,<br>or does not exist, a trustee resigns, a trustee is disqualified or removed, a trustee<br>dies, or a guardian or conservator is appointed for an individual serving as trustee.2.If one or more cotrustees remain in office, a vacancy in a trusteeship need not be<br>filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.3.A vacancy in a trusteeship of a noncharitable trust which is required to be filled must<br>be filled in the following order of priority. First, the vacancy must be filled by a<br>person designated in the terms of the trust or appointed under the terms of the trust<br>to act as successor trustee.Second, the vacancy must be filled by a personappointed by unanimous agreement of the qualified beneficiaries.Finally, thevacancy must be filled by a person appointed by the court.4.A vacancy in a trusteeship of a charitable trust which is required to be filled must be<br>filled in the following order of priority. First, the vacancy must be filled by a person<br>designated in the terms of the trust or appointed under the terms of the trust to act<br>as successor trustee. Second, the vacancy must be filled by a person selected by<br>the charitable organizations expressly designated to receive distributions under the<br>terms of the trust if the attorney general concurs in the selection.Finally, thevacancy must be filled by a person appointed by the court.5.Whether or not a vacancy in a trusteeship exists or is required to be filled, the court<br>may appoint an additional trustee or special fiduciary whenever the court considers<br>the appointment necessary for the administration of the trust.59-15-05. (705) Resignation of trustee.1.A trustee may resign:a.Upon at least thirty days' notice to the settlor, if living, to all cotrustees, and the<br>qualified beneficiaries, except those qualified beneficiaries under a revocable<br>trust that the settlor has the capacity to revoke; orb.With the approval of the court.2.In approving a resignation, the court may issue orders and impose conditions<br>reasonably necessary for the protection of the trust property.3.Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or<br>omissions of the trustee is not discharged or affected by the trustee's resignation.59-15-06. (706) Removal of trustee.Page No. 21.The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee,<br>or a trustee may be removed by the court on its own initiative.2.The court may remove a trustee if the trustee has committed a serious breach of<br>trust; if lack of cooperation among cotrustees substantially impairs the administration<br>of the trust; if because of unfitness, unwillingness, or persistent failure of the trustee<br>to administer the trust effectively, the court determines that removal of the trustee<br>best serves the interests of the beneficiaries; or if there has been a substantial<br>change of circumstances or removal is requested by all of the qualified beneficiaries,<br>the court finds that removal of the trustee best serves the interests of all of the<br>beneficiaries and is not inconsistent with a material purpose of the trust, and a<br>suitable cotrustee or successor trustee is available.3.Pending a final decision on a request to remove a trustee, or in lieu of or in addition<br>to removing a trustee, the court may order such appropriate relief under<br>subsection 2 of section 59-18-01 as may be necessary to protect the trust property<br>or the interests of the beneficiaries.59-15-07. (707) Delivery of property by former trustee.1.Unless a cotrustee remains in office or the court otherwise orders, and until the trust<br>property is delivered to a successor trustee or other person entitled to it, a trustee<br>who has resigned or been removed has the duties of a trustee and the powers<br>necessary to protect the trust property.2.A trustee who has resigned or been removed shall proceed expeditiously to deliver<br>the trust property within the trustee's possession to the cotrustee, successor trustee,<br>or other person entitled to the property.3.Title to all trust property must be owned by and vested in any successor trustee<br>without any conveyance, transfer, or assignment by the prior trustee.59-15-08. (708) Compensation of trustee.1.If the terms of a trust do not specify the trustee's compensation, a trustee is entitled<br>to compensation that is reasonable under the circumstances.2.If the terms of a trust specify the trustee's compensation, the trustee is entitled to be<br>compensated as specified, but the court may allow more or less compensation if the<br>duties of the trustee are substantially different from those contemplated when the<br>trust was created or the compensation specified by the terms of the trust would be<br>unreasonably low or high.59-15-09. (709) Reimbursement of expenses.1.A trustee is entitled to be reimbursed out of the trust property, with interest as<br>appropriate, for expenses that were properly incurred in the administration of the<br>trust and, to the extent necessary to prevent unjust enrichment of the trust,<br>expenses that were not properly incurred in the administration of the trust.2.An advance by the trustee of money for the protection of the trust gives rise to a lien<br>against trust property to secure reimbursement with reasonable interest. The lien<br>under this subsection does not apply to a common or collective fund that is exempt<br>under 26 U.S.C. 584.Page No. 3Document Outlinechapter 59-15 office of trustee
CHAPTER 59-15OFFICE OF TRUSTEE59-15-01. (701) Accepting or declining trusteeship.1.Except as otherwise provided in subsection 3, a person designated as trustee<br>accepts the trusteeship by substantially complying with a method of acceptance<br>provided in the terms of the trust or, if the terms of the trust do not provide a method<br>or the method provided in the terms is not expressly made exclusive, by accepting<br>delivery of the trust property, exercising powers or performing duties as trustee, or<br>otherwise indicating acceptance of the trusteeship.2.A person designated as trustee who has not yet accepted the trusteeship may<br>decline the trusteeship. A designated trustee who does not accept the trusteeship<br>within a reasonable time after knowing of the designation is deemed to have<br>declined the trusteeship.3.A person designated as trustee, without accepting the trusteeship, may act to<br>preserve the trust property if, within a reasonable time after acting, the person sends<br>a declination of the trusteeship to the settlor or, if the settlor is dead or lacks<br>capacity, to a qualified beneficiary and inspect or investigate trust property to<br>determine potential liability under environmental or other law or for any other<br>purpose.59-15-02. (702) Trustee's bond.1.A trustee shall give bond to secure performance of the trustee's duties only if the<br>court finds that a bond is needed to protect the interests of the beneficiaries or is<br>required by the terms of the trust and the court has not dispensed with the<br>requirement.2.The court may specify the amount of a bond, its liabilities, and whether sureties are<br>necessary. The court may modify or terminate a bond at any time.3.A bank or trust company qualified to act as a trustee in this state need not give bond,<br>even if required by the terms of the trust.59-15-03. (703) Cotrustees.1.Cotrustees who are unable to reach a unanimous decision may act by majority<br>decision.2.If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the<br>trust.3.A cotrustee must participate in the performance of a trustee's function unless the<br>cotrustee is unavailable to perform the function because of absence, illness,<br>disqualification under other law, or other temporary incapacity or the cotrustee has<br>properly delegated the performance of the function to another trustee.4.If a cotrustee is unavailable to perform duties because of absence, illness,<br>disqualification under other law, or other temporary incapacity, and prompt action is<br>necessary to achieve the purposes of the trust or to avoid injury to the trust property,<br>the remaining cotrustee or a majority of the remaining cotrustees may act for the<br>trust.5.A trustee may delegate to a cotrustee the performance of any function other than a<br>function that the terms of the trust expressly require to be performed by the trusteesPage No. 1jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation<br>previously made.6.Except as otherwise provided in subsection 7, a trustee who does not join in an<br>action of another trustee is not liable for the action.7.Each trustee shall exercise reasonable care to prevent a cotrustee from committing<br>a serious breach of trust and compel a cotrustee to redress a serious breach of trust.8.A dissenting trustee who joins in an action at the direction of the majority of the<br>trustees and who notified any cotrustee of the dissent at or before the time of the<br>action is not liable for the action unless the action is a serious breach of trust.59-15-04. (704) Vacancy in trusteeship - Appointment of successor.1.A vacancy in a trusteeship occurs if a person designated as trustee declines the<br>trusteeship, a person designated as trustee cannot be identified, cannot be located,<br>or does not exist, a trustee resigns, a trustee is disqualified or removed, a trustee<br>dies, or a guardian or conservator is appointed for an individual serving as trustee.2.If one or more cotrustees remain in office, a vacancy in a trusteeship need not be<br>filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.3.A vacancy in a trusteeship of a noncharitable trust which is required to be filled must<br>be filled in the following order of priority. First, the vacancy must be filled by a<br>person designated in the terms of the trust or appointed under the terms of the trust<br>to act as successor trustee.Second, the vacancy must be filled by a personappointed by unanimous agreement of the qualified beneficiaries.Finally, thevacancy must be filled by a person appointed by the court.4.A vacancy in a trusteeship of a charitable trust which is required to be filled must be<br>filled in the following order of priority. First, the vacancy must be filled by a person<br>designated in the terms of the trust or appointed under the terms of the trust to act<br>as successor trustee. Second, the vacancy must be filled by a person selected by<br>the charitable organizations expressly designated to receive distributions under the<br>terms of the trust if the attorney general concurs in the selection.Finally, thevacancy must be filled by a person appointed by the court.5.Whether or not a vacancy in a trusteeship exists or is required to be filled, the court<br>may appoint an additional trustee or special fiduciary whenever the court considers<br>the appointment necessary for the administration of the trust.59-15-05. (705) Resignation of trustee.1.A trustee may resign:a.Upon at least thirty days' notice to the settlor, if living, to all cotrustees, and the<br>qualified beneficiaries, except those qualified beneficiaries under a revocable<br>trust that the settlor has the capacity to revoke; orb.With the approval of the court.2.In approving a resignation, the court may issue orders and impose conditions<br>reasonably necessary for the protection of the trust property.3.Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or<br>omissions of the trustee is not discharged or affected by the trustee's resignation.59-15-06. (706) Removal of trustee.Page No. 21.The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee,<br>or a trustee may be removed by the court on its own initiative.2.The court may remove a trustee if the trustee has committed a serious breach of<br>trust; if lack of cooperation among cotrustees substantially impairs the administration<br>of the trust; if because of unfitness, unwillingness, or persistent failure of the trustee<br>to administer the trust effectively, the court determines that removal of the trustee<br>best serves the interests of the beneficiaries; or if there has been a substantial<br>change of circumstances or removal is requested by all of the qualified beneficiaries,<br>the court finds that removal of the trustee best serves the interests of all of the<br>beneficiaries and is not inconsistent with a material purpose of the trust, and a<br>suitable cotrustee or successor trustee is available.3.Pending a final decision on a request to remove a trustee, or in lieu of or in addition<br>to removing a trustee, the court may order such appropriate relief under<br>subsection 2 of section 59-18-01 as may be necessary to protect the trust property<br>or the interests of the beneficiaries.59-15-07. (707) Delivery of property by former trustee.1.Unless a cotrustee remains in office or the court otherwise orders, and until the trust<br>property is delivered to a successor trustee or other person entitled to it, a trustee<br>who has resigned or been removed has the duties of a trustee and the powers<br>necessary to protect the trust property.2.A trustee who has resigned or been removed shall proceed expeditiously to deliver<br>the trust property within the trustee's possession to the cotrustee, successor trustee,<br>or other person entitled to the property.3.Title to all trust property must be owned by and vested in any successor trustee<br>without any conveyance, transfer, or assignment by the prior trustee.59-15-08. (708) Compensation of trustee.1.If the terms of a trust do not specify the trustee's compensation, a trustee is entitled<br>to compensation that is reasonable under the circumstances.2.If the terms of a trust specify the trustee's compensation, the trustee is entitled to be<br>compensated as specified, but the court may allow more or less compensation if the<br>duties of the trustee are substantially different from those contemplated when the<br>trust was created or the compensation specified by the terms of the trust would be<br>unreasonably low or high.59-15-09. (709) Reimbursement of expenses.1.A trustee is entitled to be reimbursed out of the trust property, with interest as<br>appropriate, for expenses that were properly incurred in the administration of the<br>trust and, to the extent necessary to prevent unjust enrichment of the trust,<br>expenses that were not properly incurred in the administration of the trust.2.An advance by the trustee of money for the protection of the trust gives rise to a lien<br>against trust property to secure reimbursement with reasonable interest. The lien<br>under this subsection does not apply to a common or collective fund that is exempt<br>under 26 U.S.C. 584.Page No. 3Document Outlinechapter 59-15 office of trustee
CHAPTER 59-15OFFICE OF TRUSTEE59-15-01. (701) Accepting or declining trusteeship.1.Except as otherwise provided in subsection 3, a person designated as trustee<br>accepts the trusteeship by substantially complying with a method of acceptance<br>provided in the terms of the trust or, if the terms of the trust do not provide a method<br>or the method provided in the terms is not expressly made exclusive, by accepting<br>delivery of the trust property, exercising powers or performing duties as trustee, or<br>otherwise indicating acceptance of the trusteeship.2.A person designated as trustee who has not yet accepted the trusteeship may<br>decline the trusteeship. A designated trustee who does not accept the trusteeship<br>within a reasonable time after knowing of the designation is deemed to have<br>declined the trusteeship.3.A person designated as trustee, without accepting the trusteeship, may act to<br>preserve the trust property if, within a reasonable time after acting, the person sends<br>a declination of the trusteeship to the settlor or, if the settlor is dead or lacks<br>capacity, to a qualified beneficiary and inspect or investigate trust property to<br>determine potential liability under environmental or other law or for any other<br>purpose.59-15-02. (702) Trustee's bond.1.A trustee shall give bond to secure performance of the trustee's duties only if the<br>court finds that a bond is needed to protect the interests of the beneficiaries or is<br>required by the terms of the trust and the court has not dispensed with the<br>requirement.2.The court may specify the amount of a bond, its liabilities, and whether sureties are<br>necessary. The court may modify or terminate a bond at any time.3.A bank or trust company qualified to act as a trustee in this state need not give bond,<br>even if required by the terms of the trust.59-15-03. (703) Cotrustees.1.Cotrustees who are unable to reach a unanimous decision may act by majority<br>decision.2.If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the<br>trust.3.A cotrustee must participate in the performance of a trustee's function unless the<br>cotrustee is unavailable to perform the function because of absence, illness,<br>disqualification under other law, or other temporary incapacity or the cotrustee has<br>properly delegated the performance of the function to another trustee.4.If a cotrustee is unavailable to perform duties because of absence, illness,<br>disqualification under other law, or other temporary incapacity, and prompt action is<br>necessary to achieve the purposes of the trust or to avoid injury to the trust property,<br>the remaining cotrustee or a majority of the remaining cotrustees may act for the<br>trust.5.A trustee may delegate to a cotrustee the performance of any function other than a<br>function that the terms of the trust expressly require to be performed by the trusteesPage No. 1jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation<br>previously made.6.Except as otherwise provided in subsection 7, a trustee who does not join in an<br>action of another trustee is not liable for the action.7.Each trustee shall exercise reasonable care to prevent a cotrustee from committing<br>a serious breach of trust and compel a cotrustee to redress a serious breach of trust.8.A dissenting trustee who joins in an action at the direction of the majority of the<br>trustees and who notified any cotrustee of the dissent at or before the time of the<br>action is not liable for the action unless the action is a serious breach of trust.59-15-04. (704) Vacancy in trusteeship - Appointment of successor.1.A vacancy in a trusteeship occurs if a person designated as trustee declines the<br>trusteeship, a person designated as trustee cannot be identified, cannot be located,<br>or does not exist, a trustee resigns, a trustee is disqualified or removed, a trustee<br>dies, or a guardian or conservator is appointed for an individual serving as trustee.2.If one or more cotrustees remain in office, a vacancy in a trusteeship need not be<br>filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.3.A vacancy in a trusteeship of a noncharitable trust which is required to be filled must<br>be filled in the following order of priority. First, the vacancy must be filled by a<br>person designated in the terms of the trust or appointed under the terms of the trust<br>to act as successor trustee.Second, the vacancy must be filled by a personappointed by unanimous agreement of the qualified beneficiaries.Finally, thevacancy must be filled by a person appointed by the court.4.A vacancy in a trusteeship of a charitable trust which is required to be filled must be<br>filled in the following order of priority. First, the vacancy must be filled by a person<br>designated in the terms of the trust or appointed under the terms of the trust to act<br>as successor trustee. Second, the vacancy must be filled by a person selected by<br>the charitable organizations expressly designated to receive distributions under the<br>terms of the trust if the attorney general concurs in the selection.Finally, thevacancy must be filled by a person appointed by the court.5.Whether or not a vacancy in a trusteeship exists or is required to be filled, the court<br>may appoint an additional trustee or special fiduciary whenever the court considers<br>the appointment necessary for the administration of the trust.59-15-05. (705) Resignation of trustee.1.A trustee may resign:a.Upon at least thirty days' notice to the settlor, if living, to all cotrustees, and the<br>qualified beneficiaries, except those qualified beneficiaries under a revocable<br>trust that the settlor has the capacity to revoke; orb.With the approval of the court.2.In approving a resignation, the court may issue orders and impose conditions<br>reasonably necessary for the protection of the trust property.3.Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or<br>omissions of the trustee is not discharged or affected by the trustee's resignation.59-15-06. (706) Removal of trustee.Page No. 21.The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee,<br>or a trustee may be removed by the court on its own initiative.2.The court may remove a trustee if the trustee has committed a serious breach of<br>trust; if lack of cooperation among cotrustees substantially impairs the administration<br>of the trust; if because of unfitness, unwillingness, or persistent failure of the trustee<br>to administer the trust effectively, the court determines that removal of the trustee<br>best serves the interests of the beneficiaries; or if there has been a substantial<br>change of circumstances or removal is requested by all of the qualified beneficiaries,<br>the court finds that removal of the trustee best serves the interests of all of the<br>beneficiaries and is not inconsistent with a material purpose of the trust, and a<br>suitable cotrustee or successor trustee is available.3.Pending a final decision on a request to remove a trustee, or in lieu of or in addition<br>to removing a trustee, the court may order such appropriate relief under<br>subsection 2 of section 59-18-01 as may be necessary to protect the trust property<br>or the interests of the beneficiaries.59-15-07. (707) Delivery of property by former trustee.1.Unless a cotrustee remains in office or the court otherwise orders, and until the trust<br>property is delivered to a successor trustee or other person entitled to it, a trustee<br>who has resigned or been removed has the duties of a trustee and the powers<br>necessary to protect the trust property.2.A trustee who has resigned or been removed shall proceed expeditiously to deliver<br>the trust property within the trustee's possession to the cotrustee, successor trustee,<br>or other person entitled to the property.3.Title to all trust property must be owned by and vested in any successor trustee<br>without any conveyance, transfer, or assignment by the prior trustee.59-15-08. (708) Compensation of trustee.1.If the terms of a trust do not specify the trustee's compensation, a trustee is entitled<br>to compensation that is reasonable under the circumstances.2.If the terms of a trust specify the trustee's compensation, the trustee is entitled to be<br>compensated as specified, but the court may allow more or less compensation if the<br>duties of the trustee are substantially different from those contemplated when the<br>trust was created or the compensation specified by the terms of the trust would be<br>unreasonably low or high.59-15-09. (709) Reimbursement of expenses.1.A trustee is entitled to be reimbursed out of the trust property, with interest as<br>appropriate, for expenses that were properly incurred in the administration of the<br>trust and, to the extent necessary to prevent unjust enrichment of the trust,<br>expenses that were not properly incurred in the administration of the trust.2.An advance by the trustee of money for the protection of the trust gives rise to a lien<br>against trust property to secure reimbursement with reasonable interest. The lien<br>under this subsection does not apply to a common or collective fund that is exempt<br>under 26 U.S.C. 584.Page No. 3Document Outlinechapter 59-15 office of trustee
