GA Code § 53-12-240 (2021)
2021 Georgia Code|Title 53 - Wills, Trusts, and Administration of Estates|Chapter 12 - Trusts|Article 13 - Trustees' Duties and Powers|Part 1 - Duties of Trustee|§ 53-12-240. Duties Generally

  The duties contained in this part are in addition to and not in limitation of the common law duties of the trustee, except to the extent inconsistent therewith.   Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its provisions and purposes.     (Code 1981, §53-12-240, enacted by Ga. L. 2010, p. 579, § 1/SB 131.)   Law reviews.   - For article, "The Scope of Permissible Investments by Fiduciaries Under Georgia Law," see 19 Ga. St. B.J. 6 (1982).   JUDICIAL DECISIONS   Editor's notes.   - In light of the similarity of the statutory provisions, decisions under former Code 1933, § 108-112, and former O.C.G.A. § 53-13-51 are included in the annotations for this Code section.   Trust holding title to utility property.    - Statutory provisions imposing a general duty to exercise ordinary care in the preservation and protection of trust property in the possession of the trustee, and former O.C.G.A. § 51-1-19, imposing general liability upon a compensated trustee for the trustee's negligence, were inapplicable since the underlying purpose of the trust to hold title to certain utility property was neither to transfer to the uncompensated trustee immediate possession of the utility corporation's property nor to impose any immediate duty on the trustee to undertake the operation and maintenance of the corporation's water system. Smith v. Hawks, 182 Ga. App. 379, 355 S.E.2d 669 (1987) (decided under former O.C.G.A. § 53-13-51).   Standing to bring suit.    - In a class action brought by a beneficiary of a trust holding a participating unit in the common trust fund of a bank, alleging that the bank made imprudent investments which resulted in losses, the class members, i.e., beneficiaries of other participating trusts, had standing, having possibly suffered injury. The bank, which had an adverse interest in the litigation, was not required to bring suit against itself. Meyer v. Citizens & S. Nat'l Bank, 106 F.R.D. 356 (M.D. Ga. 1985) (decided under former O.C.G.A. § 53-13-51).    Trustees vested jointly and severally with power to preserve trust. Smith v. Francis, 221 Ga. 260, 144 S.E.2d 439 (1965) (decided under former Code 1933, § 108-112).    While recognizing the general rule that the unified action of all the trustees is required to dispose of trust property, under Georgia law, each trustee has the duty and is clothed with the authority necessary to protect the corpus of the trust. Smith v. Francis, 221 Ga. 260, 144 S.E.2d 439 (1965) (decided under former Code 1933, § 108-112).   Jury question as to whether duty breached.    - Jury question was presented as to whether two trustees of their children's trusts acted against the interests of the beneficiaries (their children) in bad faith by amending a partnership agreement to concentrate all voting power in themselves to the exclusion of the beneficiaries, who otherwise would have become partners when they turned 45. Likewise, the trustees as partners owed duties to the trusts as partners in the partnership. Rollins v. Rollins, 338 Ga. App. 308, 790 S.E.2d 157 (2016).    Cited in Mobley v. Phinizy, 42 Ga. App. 33, 155 S.E. 73 (1930); Fine v. Saul, 183 Ga. 309, 188 S.E. 439 (1936); Clayton v. First Nat'l Bank, 237 Ga. 604, 229 S.E.2d 346 (1976); Fox v. First Nat'l Bank, 145 Ga. App. 1, 243 S.E.2d 291 (1978).   RESEARCH REFERENCES   Am. Jur. 2d.   - 76 Am. Jur. 2d, Trusts, § 331 et seq.   C.J.S.   - 90 C.J.S., Trusts, § 258.   ALR.    - Care required of trustee or guardian with respect to retaining securities coming into his hands as assets of the estate, 77 A.L.R. 505; 112 A.L.R. 355.    Provisions of will or other trust instrument exempting trustee from or limiting his liability, 83 A.L.R. 616; 158 A.L.R. 276.    Right or duty of trustee to withhold income as a reserve against future charges, anticipated loss, or reduction of future income or other emergencies, 125 A.L.R. 629.    Control of discretion of trustee as to turning over entire principal of fund to beneficiary, 143 A.L.R. 467.    Duty of trustee or other fiduciary in respect of existing life insurance policy, 150 A.L.R. 840.    Discretion given trustee respecting payment, application, or distribution of income or corpus as conditioning the gift itself, or as governing merely the time or method of permitting enjoyment, 172 A.L.R. 455.   Power of guardian representing unborn future interest holders to consent to invasion of trust corpus, 49 A.L.R.2d 1095.   Duty of trustees of charitable trust to furnish information and records to attorney general relating to trust administration, 86 A.L.R.2d 1375.   Validity and construction of trust provision authorizing trustee to purchase trust property, 39 A.L.R.3d 836.   Liability of executor, administrator, trustee, or his counsel, for interest, penalty, or extra taxes assessed against estate because of tax law violations, 47 A.L.R.3d 507.   Liability of testamentary trustee for failure to assert claim against executor of testator's estate for mistake resulting in overpayment of taxes, 68 A.L.R.3d 1265.   Absence of market therefor as justifying trustee's retention of unauthorized or nonlegal securities received from creator of trust, 88 A.L.R.3d 894.   Payment or distribution under invalid instruction as breach of trustee's duty, 6 A.L.R.4th 1196.   Right of trustee of land having interest therein to purchase on his own behalf in association with foreclosure by third-party lienor, in absence of express trust provision, 30 A.L.R.4th 732.   Liability of trustee for payments or conveyances under a trust subsequently held to be invalid, 77 A.L.R.4th 1177.