uniform trust code - Kansas Judicial Branch

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ARTICLE 8
DUTIES AND POWERS OF TRUSTEE
General Comment
This article states the fundamental duties of a trustee and lists the trustee’s powers. The
duties listed are not new, but how the particular duties are formulated and applied has changed over
the years. This article was drafted where possible to conform with the 1994 Uniform Prudent
Investor Act, which has been enacted in approximately two thirds of the States. The Uniform
Prudent Investor Act prescribes a trustee’s responsibilities with respect to the management and
investment of trust property. The Uniform Trust Code also addresses a trustee’s duties with respect
to distribution to beneficiaries.
Because of the widespread adoption of the Uniform Prudent Investor Act, it was decided not
to disassemble and fully integrate the Prudent Investor Act into the Uniform Trust Code. Instead,
States enacting the Uniform Trust Code are encouraged to recodify their version of the Prudent
Investor Act by reenacting it as Article 9 of this Code rather than leaving it elsewhere in their
statutes. Where the Uniform Trust Code and Uniform Prudent Investor Act overlap, States should
enact the provisions of this article and not enact the duplicative provisions of the Prudent Investor
Act. Sections of this article which overlap with the Prudent Investor Act are Sections 802 (duty of
loyalty), 803 (impartiality), 805 (costs of administration), 806 (trustee’s skills), and 807 (delegation).
For more complete instructions on how to enact the Uniform Prudent Investor Act as part of this
Code, see the General Comment to Article 9.
All of the provisions of this article may be overridden in the terms of the trust except for
certain aspects of the trustee’s duty to keep the beneficiaries informed of administration (see Section
105(b)(8)-(9)), and the trustee’s fundamental obligation to act in good faith, in accordance with the
purposes of the trust, and for the benefit of the beneficiaries (see Section 105(b)(2)-(3)).
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SECTION 801. DUTY TO ADMINISTER TRUST. Upon acceptance of a trusteeship,
the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the
interests of the beneficiaries, and in accordance with this [Code].
Kansas Comment
This section generally conforms to Kansas law. See K.S.A. 58-1203(b) (trustee has duty to
act with due regard to the obligation of fiduciary in the exercise of his powers); Mark Twain Kansas
City Bank v. Kroh Bros. Development Co., 250 Kan. 754, 765-66, 863 P.2d 355 (1992) (trustee acts
as fiduciary to the trust and may only exercise those powers as provided by the trust agreement);
Dinsmoor v. Hill, 164 Kan. 12, 15, 187 P.2d 338 (1947) (trustee is held in equity and good
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