uniform trust code - Kansas Judicial Branch

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
conscience to the exercise of good faith which requires him to act with due regard to the interests
of the beneficiaries).
UTC Comment
This section confirms that a primary duty of a trustee is to follow the terms and purposes of
the trust and to do so in good faith. Only if the terms of a trust are silent or for some reason invalid
on a particular issue does this Code govern the trustee’s duties. This section also confirms that a
trustee does not have a duty to act until the trustee has accepted the trusteeship. For the procedure
for accepting a trusteeship, see Section 701.
In administering the trust, the trustee must not only comply with this section but also with
the other duties specified in this article, particularly the obligation not to place the interests of others
above those of the beneficiaries (Section 802), the duty to act with prudence (Section 804), and the
duty to keep the qualified beneficiaries reasonably informed about the administration of the trust
(Section 813).
While a trustee generally must administer a trust in accordance with its terms and purposes,
the purposes and particular terms of the trust can on occasion conflict. If such a conflict occurs
because of circumstances not anticipated by the settlor, it may be appropriate for the trustee to
petition under Section 412 to modify or terminate the trust. Pursuant to Section 404, the trustee is
not required to perform a duty prescribed by the terms of the trust if performance would be
impossible, illegal or contrary to public policy.
For background on the trustee’s duty to administer the trust, see Restatement (Second) of
Trusts §§ 164-169 (1959).
23
24
25
26
27
28
29
30
SECTION 802. DUTY OF LOYALTY.
(a) A trustee shall administer the trust solely in the interests of the beneficiaries.
(b) Subject to the rights of persons dealing with or assisting the trustee as provided
in Section 1012, a sale, encumbrance, or other transaction involving the investment or management
of trust property entered into by the trustee for the trustee’s own personal account or which is
otherwise affected by a conflict between the trustee’s fiduciary and personal interests is voidable by
a beneficiary affected by the transaction unless:
(1) the transaction was authorized by the terms of the trust;
134