A. A trustee shall administer the trust solely in the interests of thebeneficiaries.
B. Subject to the rights of persons dealing with or assisting the trustee asprovided in § 55-550.12, a sale, encumbrance, or other transaction involvingthe investment or management of trust property entered into by the trusteefor the trustee's own personal account or which is otherwise affected by aconflict between the trustee's fiduciary and personal interests is voidableby a beneficiary affected by the transaction unless:
1. The transaction was authorized by the terms of the trust;
2. The transaction was approved by the court;
3. The beneficiary did not commence a judicial proceeding within the timeallowed by § 55-550.05;
4. The beneficiary consented to the trustee's conduct, ratified thetransaction, or released the trustee in compliance with § 55-550.09; or
5. The transaction involves a contract entered into or claim acquired by thetrustee before the person became or contemplated becoming trustee.
C. A sale, encumbrance, or other transaction involving the investment ormanagement of trust property is presumed to be affected by a conflict betweenpersonal and fiduciary interests if it is entered into by the trustee with:
1. The trustee's spouse;
2. The trustee's descendants, siblings, parents, or their spouses;
3. An agent or attorney of the trustee; or
4. A corporation or other person or enterprise in which the trustee, or aperson that owns a significant interest in the trustee, has an interest thatmight affect the trustee's best judgment.
D. A transaction between a trustee and a beneficiary that does not concerntrust property but that occurs during the existence of the trust or while thetrustee retains significant influence over the beneficiary and from which thetrustee obtains an advantage beyond the normal commercial advantage from suchtransaction is voidable by the beneficiary unless the trustee establishesthat the transaction was fair to the beneficiary.
E. A transaction not concerning trust property in which the trustee engagesin the trustee's individual capacity involves a conflict between personal andfiduciary interests if the transaction concerns an opportunity properlybelonging to the trust.
F. An investment by a trustee in securities of an investment company,investment trust, mutual fund, or other investment or financial product towhich the trustee, or an affiliate of the trustee, sponsors, sells orprovides services in a capacity other than as trustee is not presumed to beaffected by a conflict between personal and fiduciary interests if theinvestment otherwise complies with the Uniform Prudent Investor Act (§26-45.3 et seq.) and § 26-44.1. The trustee may be compensated by theinvestment company, investment trust, mutual fund or other investment orfinancial product, or by the affiliated entity sponsoring, selling, orproviding such service, and such compensation may be in addition to thecompensation the trustee is receiving as a trustee if the trustee notifiesthe persons entitled to receive a copy of the trustee's annual report under §55-548.13 of the rate and method by which that compensation was determinedand of any subsequent changes to such rate or method of compensation.
G. In voting shares of stock or in exercising powers of control over similarinterests in other forms of enterprise, the trustee shall act in the bestinterests of the beneficiaries. If the trust is the sole owner of acorporation or other form of enterprise, the trustee shall elect or appointdirectors or other managers who will manage the corporation or enterprise inthe best interests of the beneficiaries.
H. This section does not preclude the following transactions, if fair to thebeneficiaries:
1. An agreement between a trustee and a beneficiary relating to theappointment or compensation of the trustee;
2. Payment of reasonable compensation to the trustee;
3. A transaction between a trust and another trust, decedent's estate, orconservatorship of which the trustee is a fiduciary or in which a beneficiaryhas an interest;
4. A deposit of trust money in a regulated financial service institutionoperated by the trustee; or
5. An advance by the trustee of money for the protection of the trust.
I. The court may appoint a special fiduciary to make a decision with respectto any proposed transaction that might violate this section if entered intoby the trustee.
A. A trustee shall administer the trust solely in the interests of thebeneficiaries.
B. Subject to the rights of persons dealing with or assisting the trustee asprovided in § 55-550.12, a sale, encumbrance, or other transaction involvingthe investment or management of trust property entered into by the trusteefor the trustee's own personal account or which is otherwise affected by aconflict between the trustee's fiduciary and personal interests is voidableby a beneficiary affected by the transaction unless:
1. The transaction was authorized by the terms of the trust;
2. The transaction was approved by the court;
3. The beneficiary did not commence a judicial proceeding within the timeallowed by § 55-550.05;
4. The beneficiary consented to the trustee's conduct, ratified thetransaction, or released the trustee in compliance with § 55-550.09; or
5. The transaction involves a contract entered into or claim acquired by thetrustee before the person became or contemplated becoming trustee.
C. A sale, encumbrance, or other transaction involving the investment ormanagement of trust property is presumed to be affected by a conflict betweenpersonal and fiduciary interests if it is entered into by the trustee with:
1. The trustee's spouse;
2. The trustee's descendants, siblings, parents, or their spouses;
3. An agent or attorney of the trustee; or
4. A corporation or other person or enterprise in which the trustee, or aperson that owns a significant interest in the trustee, has an interest thatmight affect the trustee's best judgment.
D. A transaction between a trustee and a beneficiary that does not concerntrust property but that occurs during the existence of the trust or while thetrustee retains significant influence over the beneficiary and from which thetrustee obtains an advantage beyond the normal commercial advantage from suchtransaction is voidable by the beneficiary unless the trustee establishesthat the transaction was fair to the beneficiary.
E. A transaction not concerning trust property in which the trustee engagesin the trustee's individual capacity involves a conflict between personal andfiduciary interests if the transaction concerns an opportunity properlybelonging to the trust.
F. An investment by a trustee in securities of an investment company,investment trust, mutual fund, or other investment or financial product towhich the trustee, or an affiliate of the trustee, sponsors, sells orprovides services in a capacity other than as trustee is not presumed to beaffected by a conflict between personal and fiduciary interests if theinvestment otherwise complies with the Uniform Prudent Investor Act (§26-45.3 et seq.) and § 26-44.1. The trustee may be compensated by theinvestment company, investment trust, mutual fund or other investment orfinancial product, or by the affiliated entity sponsoring, selling, orproviding such service, and such compensation may be in addition to thecompensation the trustee is receiving as a trustee if the trustee notifiesthe persons entitled to receive a copy of the trustee's annual report under §55-548.13 of the rate and method by which that compensation was determinedand of any subsequent changes to such rate or method of compensation.
G. In voting shares of stock or in exercising powers of control over similarinterests in other forms of enterprise, the trustee shall act in the bestinterests of the beneficiaries. If the trust is the sole owner of acorporation or other form of enterprise, the trustee shall elect or appointdirectors or other managers who will manage the corporation or enterprise inthe best interests of the beneficiaries.
H. This section does not preclude the following transactions, if fair to thebeneficiaries:
1. An agreement between a trustee and a beneficiary relating to theappointment or compensation of the trustee;
2. Payment of reasonable compensation to the trustee;
3. A transaction between a trust and another trust, decedent's estate, orconservatorship of which the trustee is a fiduciary or in which a beneficiaryhas an interest;
4. A deposit of trust money in a regulated financial service institutionoperated by the trustee; or
5. An advance by the trustee of money for the protection of the trust.
I. The court may appoint a special fiduciary to make a decision with respectto any proposed transaction that might violate this section if entered intoby the trustee.
A. A trustee shall administer the trust solely in the interests of thebeneficiaries.
B. Subject to the rights of persons dealing with or assisting the trustee asprovided in § 55-550.12, a sale, encumbrance, or other transaction involvingthe investment or management of trust property entered into by the trusteefor the trustee's own personal account or which is otherwise affected by aconflict between the trustee's fiduciary and personal interests is voidableby a beneficiary affected by the transaction unless:
1. The transaction was authorized by the terms of the trust;
2. The transaction was approved by the court;
3. The beneficiary did not commence a judicial proceeding within the timeallowed by § 55-550.05;
4. The beneficiary consented to the trustee's conduct, ratified thetransaction, or released the trustee in compliance with § 55-550.09; or
5. The transaction involves a contract entered into or claim acquired by thetrustee before the person became or contemplated becoming trustee.
C. A sale, encumbrance, or other transaction involving the investment ormanagement of trust property is presumed to be affected by a conflict betweenpersonal and fiduciary interests if it is entered into by the trustee with:
1. The trustee's spouse;
2. The trustee's descendants, siblings, parents, or their spouses;
3. An agent or attorney of the trustee; or
4. A corporation or other person or enterprise in which the trustee, or aperson that owns a significant interest in the trustee, has an interest thatmight affect the trustee's best judgment.
D. A transaction between a trustee and a beneficiary that does not concerntrust property but that occurs during the existence of the trust or while thetrustee retains significant influence over the beneficiary and from which thetrustee obtains an advantage beyond the normal commercial advantage from suchtransaction is voidable by the beneficiary unless the trustee establishesthat the transaction was fair to the beneficiary.
E. A transaction not concerning trust property in which the trustee engagesin the trustee's individual capacity involves a conflict between personal andfiduciary interests if the transaction concerns an opportunity properlybelonging to the trust.
F. An investment by a trustee in securities of an investment company,investment trust, mutual fund, or other investment or financial product towhich the trustee, or an affiliate of the trustee, sponsors, sells orprovides services in a capacity other than as trustee is not presumed to beaffected by a conflict between personal and fiduciary interests if theinvestment otherwise complies with the Uniform Prudent Investor Act (§26-45.3 et seq.) and § 26-44.1. The trustee may be compensated by theinvestment company, investment trust, mutual fund or other investment orfinancial product, or by the affiliated entity sponsoring, selling, orproviding such service, and such compensation may be in addition to thecompensation the trustee is receiving as a trustee if the trustee notifiesthe persons entitled to receive a copy of the trustee's annual report under §55-548.13 of the rate and method by which that compensation was determinedand of any subsequent changes to such rate or method of compensation.
G. In voting shares of stock or in exercising powers of control over similarinterests in other forms of enterprise, the trustee shall act in the bestinterests of the beneficiaries. If the trust is the sole owner of acorporation or other form of enterprise, the trustee shall elect or appointdirectors or other managers who will manage the corporation or enterprise inthe best interests of the beneficiaries.
H. This section does not preclude the following transactions, if fair to thebeneficiaries:
1. An agreement between a trustee and a beneficiary relating to theappointment or compensation of the trustee;
2. Payment of reasonable compensation to the trustee;
3. A transaction between a trust and another trust, decedent's estate, orconservatorship of which the trustee is a fiduciary or in which a beneficiaryhas an interest;
4. A deposit of trust money in a regulated financial service institutionoperated by the trustee; or
5. An advance by the trustee of money for the protection of the trust.
I. The court may appoint a special fiduciary to make a decision with respectto any proposed transaction that might violate this section if entered intoby the trustee.
