Source: https://dcmetrotrustcode.com/section/utc-%C2%A7-703/
Timestamp: 2020-04-02 06:14:20
Document Index: 313079567

Matched Legal Cases: ['§ 703', '§703', '§703', '§19', '§64', '§14', '§ 703', '§ 19', '§ 14', '§ 64']

UTC § 703 | DC Metro Trust Code
UTC §703(e) and the corresponding provisions of the three jurisdictions all have different standards for delegating among co-trustees.
UTC §703, DC §19-1307.03 and VA §64.2-756 all permit co-trustees to act by majority decision. MD §14.5-703 omits a “majority rules” provision.
§ 703. Cotrustees.
(a) Cotrustees who are unable to reach a unanimous decision may act by majority decision.
(b) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(c) A cotrustee must participate in the performance of a trustee’s function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(d) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(e) A trustee may not delegate to a cotrustee the performance of a function the settlor reasonably expected the trustees to perform jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
(f) Except as otherwise provided in subsection (g), a trustee who does not join in an action of another trustee is not liable for the action.
(g) Each trustee shall exercise reasonable care to:
(1) prevent a cotrustee from committing a serious breach of trust; and
(2) compel a cotrustee to redress a serious breach of trust.
(h) A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.
§ 19-1307.03. Cotrustees.
(c) A cotrustee must participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(e) A trustee may delegate to a cotrustee the performance of a function relating to management, investment, or trust administration, [UTC(e) PHRASES THIS AS PROHIBITIVE, AND MORE GENERALLY] but may not delegate a decision to make a distribution. [NEW CLAUSE] [ALSO MISSING "THE SETTLOR . . . EXPECTED . . . PERFORM JOINTLY"] Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
(f) Except as otherwise provided in subsection (g) of this section, a trustee who does not join in an action of another trustee is not liable for the action.
§ 14.5–703. Cotrustees.
[MISSING UTC(a)]
(a) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(b) A cotrustee shall participate in the performance of the function of a trustee unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(c) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or [MISSING "A MAJORITY OF THE REMAINING"] cotrustees may act for the trust.
(d) (1) A trustee may delegate investment and management functions to a cotrustee [UTC(e) PHRASES THIS AS PROHIBITIVE] as prudent under the circumstances. [NEW CLAUSE] [ALSO MISSING "THE SETTLOR . . . EXPECTED . . . PERFORM JOINTLY"]
(2) Unless a delegation of an investment or management function was irrevocable, a trustee may revoke a delegation previously made.
[MISSING UTC(f),(g),(h)(1),(h)(2)]
§ 64.2-756. Cotrustees
A. Cotrustees who are unable to reach a unanimous decision may act by majority decision.
B. If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
C. A cotrustee shall participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity, or the cotrustee has properly delegated the performance of the function to another trustee.
D. If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
E. A trustee may delegate to a cotrustee the performance of any function other than a function that the terms of the trust expressly require to be performed by the trustees jointly. [UTC(e) PHRASES THIS AS PROHIBITIVE] Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
F. Except as otherwise provided in subsection G, a trustee who does not join in an action of another trustee is not liable for the action.
G. Each trustee shall exercise reasonable care to:
1. Prevent a cotrustee from committing a serious breach of trust; and
2. Compel a cotrustee to redress a serious breach of trust.
H. A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.
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