uniform trust code - Kansas Judicial Branch

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The duty to act impartially does not mean that the trustee must treat the beneficiaries equally.
Rather, the trustee must treat the beneficiaries equitably in light of the purposes and terms of the
trust. A settlor who prefers that the trustee, when making decisions, generally favor the interests of
one beneficiary over those of others should provide appropriate guidance in the terms of the trust.
See Restatement (Second) of § 183 cmt. a (1959).
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SECTION 804. PRUDENT ADMINISTRATION. A trustee shall administer the trust as
a prudent person would, by considering the purposes, terms, distributional requirements, and other
circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care,
skill, and caution.
Kansas Comment
This section conforms to Kansas law. See K.S.A. 58-1202(c) (unless trust instrument states
otherwise, prudent investor rule is standard for exercise of trustee powers); Pizel v. Whalen, 252
Kan. 384, 390, 845 P.2d 37 (1993) (standard of care, diligence, and skill required of trustee in the
administration of the trust estate is that of a prudent man).
UTC Comment
The duty to administer a trust with prudence is a fundamental duty of the trustee. This duty
does not depend on whether the trustee receives compensation. The duty may be altered by the
terms of the trust. See Section 105. This section is similar to Section 2(a) of the Uniform Prudent
Investor Act and Restatement (Third) of Trusts: Prudent Investor Rule § 227 (1992).
The language of this section diverges from the language of the previous Restatement. The
prior Restatement can be read as applying the same standard – “man of ordinary prudence would
exercise in dealing with his own property” – regardless of the type or purposes of the trust. See
Restatement (Second) of Trusts § 174 cmt. a (1959). This section appropriately bases the standard
on the purposes and other circumstances of the particular trust.
A settlor who wishes to modify the standard of care specified in this section is free to do so,
but there is a limit. Section 1008 prohibits a settlor from exculpating a trustee from liability for
breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or
to the interests of the beneficiaries.
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SECTION 805. COSTS OF ADMINISTRATION. In administering a trust, the trustee
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