reglab/statecodes huggingface dataset:
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2025. Delegation of right to terminate or to modify administrative provisions

RS 9:2025 - Delegation of right to terminate or to modify administrative provisions
A settlor may delegate to another person the right to terminate a trust, or to modify the administrative provisions of a trust, but the right to modify other provisions of a trust may not be delegated except as provided in R.S. 9:2031.
Acts 2010, No. 390, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2026. Termination or modification to prevent impairment of trust purposes; termination of small trust

RS 9:2026 - Termination or modification to prevent impairment of trust purposes; termination of small trust
A. The proper court may order the termination or modification of a trust, in whole or in part, if the continuance of the trust unchanged would defeat or substantially impair the purposes of the trust. In the event of termination of a trust under this Subsection, the proper court shall provide for the distribution of the trust property, including principal and undistributed income, to the beneficiaries in a manner that conforms as nearly as possible to the intention of the settlor.
B. Except as otherwise provided by the terms of the trust, a trustee may terminate a trust after obtaining the consent of all beneficiaries or their legal representatives if the market value of a trust is less than one hundred thousand dollars. A natural tutor, without need for a formal tutorship proceeding and concurrence of an undertutor, may consent to the termination of a trust on behalf of a minor.
C. In the event of the termination or modification of a trust under this Section, the trustee shall not be subject to liability for such termination or modification.
Acts 1991, No. 665, §1; Acts 1997, No. 252, §1; Acts 2001, No. 594, §2; Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2028. Concurrence of settlors in termination

RS 9:2028 - Concurrence of settlors in termination
Except as otherwise provided by law or the trust instrument, the consent of all settlors, trustees, and beneficiaries shall not be effective to terminate the trust or any disposition in trust.
Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2029. Effect of termination

RS 9:2029 - Effect of termination
A termination of a trust causes the dispositive provisions of the trust to achieve their ultimate effect. A partial termination of a trust causes some of the dispositive provisions to achieve their ultimate effect. A beneficiary receiving trust property as a result of the whole or partial termination of a trust shall be personally liable for the obligations and liabilities of the trust existing on the date of termination to the extent of the value of the trust property received by such beneficiary unless, in the case of a partial termination, existing trust property is sufficient to satisfy the obligations and liabilities of the trust.
Acts 1995, No. 344, §3.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2029.1. Termination of trust; immovable property owned by trust

RS 9:2029.1 - Termination of trust; immovable property owned by trust
If a trust owns immovable property at the time the trust terminates and the date of termination is not discernable on the face of the recorded trust agreement or extract of trust, the termination shall not cause the dispositive provisions of the trust to have their ultimate effect insofar as third persons are concerned until an act evidencing such termination has been recorded in the conveyance records of the clerk of court of the parish in which the immovable property is located.
Acts 2015, No. 225, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2030. Combination and division of trusts

RS 9:2030 - Combination and division of trusts
A trustee may combine two or more trusts into one trust, or divide a trust into two or more trusts, on written notice to all beneficiaries having a current interest in the trust or trusts, if the combination or division does not impair the rights of any beneficiary or adversely affect the accomplishment of the purposes of the trust or trusts. The division of a trust shall be based on the fair market value of the assets of the trust on the effective date of the division and need not result in a uniform interest in each asset. After the division, discretionary distributions need not be made uniformly from each of the separate trusts. A trust instrument may modify these rules, either to expand or to restrict the trustee's authority to combine or divide a trust.
Acts 1995, No. 344, §2; Acts 2001, No. 594, §2.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2031. Delegation of right to modify

RS 9:2031 - Delegation of right to modify
A. A trust instrument may authorize a person who is in being on the date of the creation of the trust to modify the provisions of the trust instrument in order to add or remove beneficiaries, or modify their rights, if all of the affected beneficiaries are descendants of the person given the power to modify. A beneficiary added pursuant to this Section may be a person who is not in being when the trust is created, provided the individual is in being at the time the power to add is exercised.
B. As to a class trust, a trust instrument may authorize a person who is in being on the date of the creation of the trust, or a person who is not yet in being but is a member of the class, to modify the provisions of the trust instrument in order to remove beneficiaries or modify their rights or add only those beneficiaries included within the scope of R.S. 9:1891, if all of the affected beneficiaries are descendants of the person given the power to modify.
Acts 2010, No. 390, §1; Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2043. Revocation or rescission under general law

RS 9:2043 - Revocation or rescission under general law
An onerous disposition in trust may be rescinded for the causes and under the limitations specified in the general law of contracts. A gratuitous disposition may be revoked for the causes and under the limitations specified in the general law of donations, whether or not the right to revoke has been reserved. For this purpose every disposition in favor of a particular beneficiary shall be treated as a separate donation or contract, as the case may be.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2044. Concurrence of settlors in revocation; effect

RS 9:2044 - Concurrence of settlors in revocation; effect
Revocation of a trust, or of a disposition in trust, pursuant to a reservation of such a right, requires the concurrence of all surviving competent settlors, in the absence of a contrary stipulation.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2045. Delegation of right to revoke

RS 9:2045 - Delegation of right to revoke
A settlor who has reserved the right to revoke a trust may delegate the right. The delegation may be accomplished only by an express statement in the trust instrument or in a power of attorney executed by authentic act referring to the trust. The right to amend may not be delegated except as provided in R.S. 9:2025 and 2031.
Acts 2001, No. 594, §2; Acts 2010, No. 390, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2046. Effect of revocation or rescission

RS 9:2046 - Effect of revocation or rescission
The settlor may stipulate the effect of revocation or rescission of a disposition. Unless the trust instrument otherwise provides, the following rules shall govern:
(1) Revocation or rescission shall cause the trust to fail and the trust property held by the trustee at the time such revocation or rescission takes effect shall revert to the settlor or his heirs, legatees, or assignees;
(2) Revocation or rescission of a disposition affecting an income beneficiary has the same effect as if the beneficiary had died on the effective date of the revocation or rescission;
(3) Revocation or rescission at any time of a disposition in favor of a principal beneficiary operates a substitution of the settlor, or his heirs, legatees, or assignees as the beneficiary of the interest involved, without affecting the interest of the income beneficiaries; if there are two or more settlors, each disposition affecting principal shall be divided into as many separate dispositions as the number of settlors, and each settlor or his heirs, legatees, or assignees shall receive a share in proportion to the amount of his contribution to the trust principal;
(4) Revocation or rescission affects property added to a trust according to the rules of this section.
(5) Acts of the trustee with regard to the trust property shall not be affected by the subsequent revocation or rescission of a disposition in trust. After a trust has been revoked or rescinded, the trustee shall have only those powers necessary to carry out the effects of the revocation or rescission.
(6) A person receiving trust property as a result of the revocation or rescission of the trust shall be personally liable for the obligations and liabilities of the trust existing on the date of revocation or rescission to the extent of the value of the trust property received by such beneficiary unless existing trust property is sufficient to satisfy the obligations and liabilities of the trust.
Amended by Acts 1974, No. 128, §1; Acts 1995, No. 344, §3.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2047. Revocation of inter vivos trusts upon divorce

RS 9:2047 - Revocation of inter vivos trusts upon divorce
A. A divorce of the settlor revokes every provision that may be revoked or modified by the settlor in an inter vivos trust designating or appointing the settlor's former spouse unless expressly provided otherwise in the trust instrument or in a judgment or a property settlement agreement.
B. A trustee with no actual knowledge of the divorce, judgment, or property settlement agreement is not liable for actions taken in good faith regarding the settlor's former spouse.
Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2051. Form

RS 9:2051 - Form
A. A modification, division, termination, or revocation of a trust shall be by authentic act or by act under private signature executed in the presence of two witnesses and duly acknowledged by the person who makes the modification, division, or termination or by the affidavit of one of the attesting witnesses. The modification, division, termination, or revocation is not effective as to a trustee until a copy of the authentic act or a copy of the acknowledged act is received by him.
B. A modification, division, termination, or revocation of a trust may also be by testament. Such a modification, division, termination, or revocation is not effective as to a trustee until the trustee receives a copy of the testament and of the order probating it or ordering it filed and executed.
Acts 1995, No. 344, §1; Acts 2003, No. 480, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2061. General rule

RS 9:2061 - General rule
The nature and extent of the duties and powers of a trustee are determined from the provisions of the trust instrument, except as otherwise expressly provided in this Code, and, in the absence of any provisions of the trust instrument, by the provisions of this Part and by law. Unless the trust instrument provides otherwise, the duties of the trustee are owed exclusively to the settlor while a trust is revocable.
Amended by Acts 2022, No. 37, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2063. Relief from duties by beneficiary

RS 9:2063 - Relief from duties by beneficiary
By written instrument delivered to a trustee a competent beneficiary who is acting upon full information may, with respect to himself, and with the trustee's consent, relieve the trustee from duties and restrictions concerning the administration of the trust that are imposed upon the trustee by the trust instrument or by this Code, but no such instrument is effective to the extent that it purports to limit prospectively and in general terms the trustee's duty of loyalty to the beneficiary.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2064. Judicial permission or direction to deviate from administrative provisions of trust instrument

RS 9:2064 - Judicial permission or direction to deviate from administrative provisions of trust instrument
The proper court may direct or permit a trustee to deviate from a provision of the trust instrument concerning the administration of the trust if compliance would defeat or substantially impair the purposes of the trust.
Acts 1997, No. 252, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2066. Judicial permission or direction to deviate from investment provisions of trust instrument

RS 9:2066 - Judicial permission or direction to deviate from investment provisions of trust instrument
The proper court, if convinced that adherence to the investments prescribed by the trust instrument would be likely to affect adversely the best interests of a beneficiary to a serious extent, having due regard for the purposes of the trust, may upon application by a trustee or a beneficiary permit or direct the trustee to invest in securities not prescribed by the trust instrument, but a trustee is under no duty to make such an application to the court.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2067. Invasion of principal; action of court

RS 9:2067 - Invasion of principal; action of court
The proper court may direct or permit a trustee to pay income or principal from the trust property for the necessary support, maintenance, education, medical expenses, or welfare of a beneficiary before the time he is entitled to the enjoyment of that income or principal, if the interest of no other beneficiary of the trust is impaired thereby.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2068. Invasion of principal; provisions of trust instrument

RS 9:2068 - Invasion of principal; provisions of trust instrument
A. The trust instrument may direct or permit a trustee to pay principal to an income beneficiary for support, maintenance, education, or medical expenses, or, pursuant to an objective standard, for any other purpose. The trust instrument may direct the trustee to pay all or part of the principal to an income beneficiary upon the request of the beneficiary. The trust instrument may direct the trustee to pay a stipulated amount or percentage to an income beneficiary under any trust, including a unitrust or annuity trust as defined in the United States Internal Revenue Code, even if the payments exceed income. The trust instrument may provide the manner in which and the share of the trust to which the payment shall be charged; if it does not, all payments of principal made for the benefit of an income beneficiary shall be charged against such beneficiary's share in the trust as principal beneficiary, or, if there is no such share, proportionately against the shares of all principal beneficiaries. Except as provided in R.S. 9:1841 through 1847, treating the legitime in trust, a payment under this Subsection A may be made even though the payment impairs the interest of another beneficiary.
B. If the same person is beneficiary of both income and principal, the trust instrument may direct or permit the trustee in the trustee's complete discretion to invade principal held for that beneficiary.
Amended by Acts 1968, No. 133, §1; Acts 1972, No. 661, §1; Acts 1974, No. 158, §1; Acts 1989, No. 113, §1; Acts 1995, No. 220, §1; Acts 2003, No. 480, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2069. Winding-up duty and powers of trustee

RS 9:2069 - Winding-up duty and powers of trustee
If the trust terminates or is revoked, or if the trustee resigns or is removed, he shall preserve the trust property and deliver it without delay to those persons who are entitled to it. Until he delivers the property, the trustee shall retain the powers that are necessary to preserve and deliver it to those persons who are entitled to it.
Acts 1995, No. 358, §2.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2082. Administration in interest of beneficiary; duty of impartiality

RS 9:2082 - Administration in interest of beneficiary; duty of impartiality
A. A trustee shall administer the trust solely in the interest of the beneficiary.
B. When there is more than one beneficiary, a trustee shall administer the trust impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the trust instrument manifests an intention that the trustee shall or may favor one or more of the beneficiaries.
Acts 2001, No. 520, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2084. Loan by trustee to himself

RS 9:2084 - Loan by trustee to himself
A corporate trustee shall not lend trust funds to itself or an affiliate, or to a director, an officer or an employee of itself or of an affiliate, unless the trust instrument provides otherwise. An individual trustee shall not lend funds to himself, or to his relative, employer, employee, partner, or other business associate, unless the trust instrument provides otherwise.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2085. Sale by trustee to himself

RS 9:2085 - Sale by trustee to himself
A. A corporate trustee shall not directly or indirectly buy or sell property for the trust from or to itself or an affiliate, or from or to a director, officer, or an employee of itself or an affiliate, unless the trust instrument provides otherwise, or unless specifically authorized by a court of competent jurisdiction, after a contradictory hearing. An individual trustee shall not directly or indirectly buy or sell property for the trust from or to himself or his relative, employer, employee, partner, or other business associate, unless the trust instrument provides otherwise, or unless specifically authorized by a court of competent jurisdiction, after a contradictory hearing.
B. No trustee shall, as trustee of one trust, sell property to himself as trustee of another trust, unless the trust instruments concerned expressly provide otherwise, or unless specifically authorized by a court of competent jurisdiction, after a contradictory hearing, except that bonds, notes, bills, and other obligations issued, or fully guaranteed as to both principal and interest by the United States of America, or interests in time deposits or certificates of deposit or other short term investment instruments may be sold from one trust to another only by corporate trustees at the existing current market value.
Acts 1990, No. 359, §1, eff. July 10, 1990.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2086. Self-dealing by corporate trustee

RS 9:2086 - Self-dealing by corporate trustee
A. A corporate trustee shall not purchase for a trust shares of its own stock, or its bonds or other securities, or the stock, bonds, or other securities of an affiliate, unless the trust instrument provides otherwise; but the trustee may retain any such securities, together with any rights pertaining thereto, if acquired other than by purchase by that trustee.
B. A corporate trustee may invest or reinvest in the securities of mutual funds registered under the Investment Company Act of 1940, even if the trustee or an affiliate thereof receives compensation with respect to such mutual fund, provided that the compensation is reasonable and the basis for determining the compensation is disclosed to all beneficiaries affected by the investment.
Acts 2001, No. 520, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2087. Delegating performance

RS 9:2087 - Delegating performance
A. Except as otherwise provided in this Section, a trustee shall not delegate the performance of his duties.
B.(1) A trustee may, by power of attorney, delegate the performance of acts that he could not reasonably be required to perform personally and the performance of ministerial duties.
(2) A power of attorney, granted by a trustee authorizing a mandatary to alienate, acquire, lease, or encumber specifically described property on specific terms, shall be considered the delegation of the performance of a ministerial duty as provided by Paragraph (1) of this Subsection. The recitation by the trustee in a power of attorney that he has approved the specific terms of the transaction shall be sufficient to demonstrate that the trustee has delegated to the mandatary the performance of a ministerial duty.
C. A trustee may delegate the selection of specific investments by acquiring mutual funds registered under the Investment Company Act of 1940, or other pooled funds managed by a third party, so long as the portfolio of such a fund consists substantially of investments not prohibited by the trust instrument.
D.(1) A trustee may delegate investment and asset management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. In connection with such delegation, the trustee has the duty to exercise reasonable care, skill, and caution in selecting the agent and establishing the scope and terms of the delegation consistent with the purposes and terms of the trust instrument, to review periodically the actions of the agent, and, in the event of a breach of the agent's duties discovered by the trustee, to take such action to remedy the breach as is reasonable under the circumstances.
(2) In performing a delegated function, an agent owes a duty to the trustee and to the beneficiaries to exercise reasonable care and skill, considering the scope and terms of the delegation. An agreement to relieve the agent from that duty is contrary to public policy and void.
(3) By accepting delegation from a trustee of a trust established pursuant to this Code, an agent submits to the jurisdiction of the courts of this state in all matters relating to the performance of his duties.
Acts 2001, No. 520, §1; Acts 2010, No. 224, §1; Acts 2014, No. 188, §1; Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2088. Accounting

RS 9:2088 - Accounting
A. A trustee is under a duty to a beneficiary to keep and render clear and accurate accounts of the administration of the trust. If the trust is revocable, the trustee has a duty to account to the settlor only.
B. A trustee shall render to a beneficiary or his legal representative at least once a year a clear and accurate account covering his administration for the preceding year. His first annual account shall relate to the calendar year during which he became responsible for the trust property, or, at his option, the first accounting period of not more than twelve months and shall be rendered within ninety days after the expiration of that calendar year or accounting period. Each annual account shall show in detail all receipts and disbursements of cash and all receipts and deliveries of other trust property during the year, and shall set forth a list of all items of trust property at the end of the year.
C. A trustee upon the termination, revocation, or rescission of the trust, or upon his resignation or removal, shall render to a beneficiary or his legal representative his final account covering the period elapsed since his most recent annual account (or, should the trust have terminated, or have been revoked or rescinded, during the first year, the period elapsed since he became responsible for the trust property), and setting forth the same information required for annual accounts.
D. A written approval by a beneficiary or his legal representative of an account rendered by a trustee shall be conclusive against the beneficiary with respect to all matters disclosed in the account. If a beneficiary or his legal representative fail or refuse to approve in writing an account rendered by a trustee, a trustee may apply to the proper court for an approval contradictorily with a beneficiary. An approval obtained from the proper court is conclusive against a beneficiary with respect to all matters disclosed in the account so approved.
E. A trustee shall not be under a duty, to file his accounts with the court unless he is expressly required to do so by the trust instrument or by the proper court.
Acts 2001, No. 594, §2.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2089. Furnishing of information

RS 9:2089 - Furnishing of information
A trustee shall give to a beneficiary upon his request at reasonable times complete and accurate information as to the nature and amount of the trust property, and permit him, or a person duly authorized by him, to inspect the subject matter of the trust, and the accounts, vouchers, and other documents relating to the trust.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2090. Prudent administration

RS 9:2090 - Prudent administration
A. A trustee shall administer the trust as a prudent person would administer it. In satisfying this standard, the trustee shall exercise reasonable care and skill, considering the purposes, terms, distribution requirements, and other circumstances of the trust.
B. A trustee who has special skills or expertise, or has held himself out as having special skills or expertise, has a duty to use those special skills or expertise.
Acts 2001, No. 520, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2092. Recordation of instruments

RS 9:2092 - Recordation of instruments
A. If at any time the trust property of either an inter vivos trust or a testamentary trust includes immovables or other property the title to which must be recorded in order to affect third persons, a trustee shall file the trust instrument, an extract of trust, or a copy of the trust instrument or extract of trust certified by the clerk of court for the parish in which the original trust instrument or extract of trust was filed, for record in each parish in which the property is located. Nevertheless, if the trust instrument contains a transfer of immovable property or other property the title to which must be recorded in order to affect third persons, a trustee shall file the trust instrument for record in the parish in which the property is located.
B.(1) For purposes of recording an extract of a trust instrument, such an extract shall be executed by either the settlor or the trustee and shall include all of the following:
(a) The name of the trust, if any.
(b) A statement as to whether the trust is revocable or irrevocable.
(c) The name of each settlor.
(d) The name of each trustee and name or other description of the beneficiary or beneficiaries.
(e) The date of execution of the trust.
(f) Any limitation or restriction on the power of the trustee to alienate, lease, or encumber immovable property contained in the trust instrument.
(2) When an extract of trust is recorded pursuant to Subsection A of this Section, any limitation or restriction in the trust instrument on the power of the trustee to alienate, lease, or encumber immovable property shall not be effective against third persons unless it is recited in the extract of trust.
(3) The provisions of this Section authorizing the filing of an extract of the trust instrument or a clerk-certified copy of the trust instrument or extract of trust without a description of the property are remedial and shall be applied retroactively to any trust extract or clerk-certified copy of either the trust instrument or extract of trust theretofore filed for record which is in substantial compliance with the provisions of this Subsection, and such extract or clerk-certified copy shall affect third persons as of the date of recordation. If the extract of an inter vivos trust instrument or clerk-certified copy thereof is recorded, the failure of the trust instrument to be in the form required by R.S. 9:1752 shall not be effective against third persons, who shall be immune from claims based on the failure of the trust instrument to be in the form required by R.S. 9:1752.
Acts 1995, No. 257, §1; Acts 2003, No. 731, §1; Acts 2004, No. 491, §1; Acts 2012, No. 740, §1; Acts 2015, No. 225, §1; Acts 2016, No. 544, §1.
NOTE: See Acts 1987, No. 164, §3.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2094. Separation of trust property

RS 9:2094 - Separation of trust property
A trustee shall keep the trust property separate from his individual property, and, so far as reasonable, keep it separate from other property not subject to the trust, and see that the property is designated as property of the trust, unless the trust instrument provides otherwise.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2095. Bank deposits

RS 9:2095 - Bank deposits
Although a trustee can properly make a general deposit of trust money in a bank, he shall use reasonable care in selecting the bank and properly earmark the deposit as a deposit of trust funds by him as trustee, unless the trust instrument provides otherwise.
A corporate trustee making a general deposit of trust money with an affiliate or its own banking department has a duty to a beneficiary to obtain as security for the deposit readily marketable bonds or other obligations having and maintaining a market value at least equal to the amount of the deposit, unless dispensed from doing so by specific words in the trust instrument, but such a dispensation shall not be construed as preventing a corporate trustee from putting up security for a deposit of trust money if it desires to do so. No security shall be required for any deposit up to the amount insured by the Federal Deposit Insurance Corporation.
Amended by Acts 1982, No. 279, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2096. Co-trustees

RS 9:2096 - Co-trustees
If two or more trustees have the same powers, each shall participate in the administration of the trust and use reasonable care to prevent a co-trustee from committing a breach of trust and shall compel him to redress a breach of trust.
Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2097. Serving as officer of legal entity in which trust funds invested

RS 9:2097 - Serving as officer of legal entity in which trust funds invested
A. No trustee of any trust created under the laws of this state shall serve as an officer, including without limitation the president, vice president, secretary, treasurer, manager, or managing partner of any legal entity formed after the trust is created, other than a corporate trustee, in which trust funds are invested unless the settlor so authorizes such action in the instrument creating the trust or by a subsequent modification thereof. However, this shall not restrict the investment of trust funds in any bank or savings and loan association with deposits therein insured by the Federal Deposit Insurance Corporation or by any other agency or instrumentality of the federal government.
B. Any trustee who violates the provisions of this section shall be subject to removal for cause by a court of competent jurisdiction. The beneficiary of any such trust may offer proof to the court of competent jurisdiction that a trustee is acting in violation of this section, and upon presentation of such proof, the court shall remove the trustee.
C. All laws or parts of laws in conflict herewith are hereby repealed, but the provisions hereof shall not be construed to repeal R.S. 9:2081 through R.S. 9:2096.
Acts 1968, No. 627, §§1 to 3; Acts 1997, No. 251, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2111. Extent of powers

RS 9:2111 - Extent of powers
Except as stated in R.S. 9:2061 through 9:2066, a trustee shall exercise only those powers conferred upon him by the provisions of the trust instrument or necessary or appropriate to carry out the purposes of the trust and are not forbidden by the provisions of the trust instrument.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2114. Three or more trustees; exercise of powers

RS 9:2114 - Three or more trustees; exercise of powers
A power vested in three or more trustees may be exercised by a majority of the trustees, unless the trust instrument provides otherwise. A trustee who has not joined in exercising a power shall not be liable to the beneficiaries or to others for the consequences of that exercise, nor shall a dissenting trustee be liable for the consequences of an act in which he joins at the direction of the majority of trustees, if he expresses his dissent in writing to his co-trustees at or before the time of the joinder. Nothing in this section shall excuse a co-trustee from liability for inactivity in the administration of the trust nor for failure to attempt to prevent a breach of trust.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2114.1. Allocation of different powers to different trustees

RS 9:2114.1 - Allocation of different powers to different trustees
A trust instrument may confer different powers upon different trustees, in which case each trustee acts independently with respect to those powers conferred upon him. As to powers not conferred upon him, he shall have no duties or liabilities as to the actions or inactions of the other trustees.
Acts 2015, No. 219, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2118. Lease of trust property

RS 9:2118 - Lease of trust property
Unless the trust instrument provides otherwise, a trustee may enter into leases of trust property, including oil, gas, and mineral leases, either as lessor or lessee, for such periods and with such provisions as are reasonable, whether or not the term of the lease exceeds the term of the trust.
Amended by Acts 1968, No. 134, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2119. Sale of trust property

RS 9:2119 - Sale of trust property
A trustee may sell trust property unless the sale is forbidden in specific words by the trust instrument or unless it appears from the provisions of the trust instrument that the property is to be retained in kind. A settlor by the provisions of the trust instrument cannot forbid a sale of immovable property for a period beyond fifteen years from his death.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2123. Stock subscription; incorporator; organizer; partnership; joint venture; limited liability company; other legal entities

RS 9:2123 - Stock subscription; incorporator; organizer; partnership; joint venture; limited liability company; other legal entities
A trustee may acquire and subscribe for corporate shares, act as an incorporator or organizer, or become a member of a partnership, joint venture, limited liability company, or other legal entity, unless the trust instrument provides otherwise.
Acts 1997, No. 251, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2124. Holding stock in name of nominee

RS 9:2124 - Holding stock in name of nominee
A trustee owning stock may hold it in the name of a nominee, without mention of the trust in the stock certificate or stock registration book, provided that the trust records and all reports or accounts rendered by a trustee clearly show the ownership of the stock and the facts regarding its holding. A trustee shall be personally liable for any loss to the trust resulting from any act of the nominee in connection with stock so held.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2125. Contractual liability of trust

RS 9:2125 - Contractual liability of trust
A. If a trustee makes a contract that is within his powers as trustee, or if a predecessor trustee has made such a contract, and if a cause of action arises thereon, the party in whose favor the cause of action has accrued may sue the trustee in his representative capacity. A judgment rendered in the action in favor of the plaintiff shall affect or be satisfied out of the trust property.
B. A beneficiary may intervene in such an action for the purpose of contesting the right of the plaintiff to recover.
C. The plaintiff may also hold a trustee who makes a contract personally liable on the contract, if the contract does not exclude personal liability. The addition of the word "trustee" or the words "as trustee" together with language identifying the trust, after the signature of a trustee to a contract, shall be deemed prima facie evidence of an intent to exclude a trustee from personal liability.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2126. Tort liability of trust

RS 9:2126 - Tort liability of trust
A. If a trustee or his predecessor has incurred personal liability for a tort committed in the course of administration, the trustee in his representative capacity may be sued and collection had from the trust property, if the court determines in such an action:
(1) That the tort was a common incident of the kind of business activity in which the trustee or his predecessor was properly engaged for the trust; or
(2) That, although the tort was not a common incident of such an activity, neither a trustee nor his predecessor nor an officer or employee of the trustee or his predecessor was guilty of personal fault in incurring the liability; or
(3) That, although the tort does not fall within paragraphs (1) or (2) above, it increased the value of the trust property.
B. If the tort falls within paragraphs (1) or (2) of Sub-section A above, collection may be had of the full amount of damage proved and, if the tort falls within paragraph (3) of Sub-section A above, collection may be had only to the extent of the increase in the value of the trust property.
C. A beneficiary may intervene in such an action for the purpose of contesting the right of the plaintiff to recover.
D. A trustee may also be held personally liable for any tort committed by him or his agents or employees in the course of their employment, subject to the right of exoneration or reimbursement provided in R.S. 9:2191 through 9:2196.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2127. Standard of care in investing and management

RS 9:2127 - Standard of care in investing and management
Unless the trust instrument provides otherwise, a trustee shall invest and manage trust property as a prudent investor. In satisfying this standard, the trustee shall consider the purposes, terms, distribution requirements, and other circumstances of the trust. A trustee's investment and management decisions are to be evaluated in the context of the trust property as a whole and as part of an overall investment strategy having risk and return objectives reasonably suited to the trust. In investing within the limitations of the foregoing standard, a trustee is authorized to retain and acquire every kind of property.
Acts 1986, No. 178, §1; Acts 1991, No. 665, §2; Acts 2001, No. 520, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2128. Common trust funds

RS 9:2128 - Common trust funds
A. A trustee may establish common trust funds for the investment of trust funds of which he is trustee or cotrustee and may invest in such common trust funds, if such investment is not prohibited by the trust instrument, and if the trustee procures the consent of his cotrustees to the investment; provided that:
(1) The records, reports, and accounts of each trust having an interest in the fund clearly show the extent of such interest; and
(2) The trustee himself has no interest in such fund; and
(3) The fractional part of the management fee charged by the trustee proportionate to the interest of each beneficiary shall not, when added to any other compensation charged by a trustee to a beneficiary, exceed the total amount of compensation which would have been charged to the beneficiary if no assets of the beneficiary had been invested in the fund; and
(4) The fund is maintained under a written plan that is on file at the office of the trustee and is available for inspection during business hours by any interested party; and
(5) The trustee has had prepared annually by a certified public accountant and placed on file with the trustee, a statement of the investment changes, income, disbursements, and a list of the current investments with a notation as to defaults, for the period since the last such statement. The trustee shall notify each beneficiary that a copy of the annual statement is available and will be furnished to the beneficiary on request; and
(6) Entrances into, and withdrawals from, such common trust fund are permitted only on those days upon which the assets comprising the fund are valued; and
(7) No funds are admitted to the common trust fund at a time when less than forty per centum of the value of the common trust fund is composed of cash or marketable investments for which quotations are readily available; and
(8) The fund is managed in accordance with any regulations pertaining thereto issued from time to time by the office of financial institutions; and
(9) On the termination of a trust interested in the common trust fund, the trustee shall terminate the interest of that trust and shall pay from cash in the common trust fund to the person or persons then entitled to the trust capital the then market value of the interest of the trust in the common trust fund.
B. If the trustee is restricted to certain investments, then he may invest only in common trust funds limited to such investments.
C. A trustee who has established a common trust fund for the investment of trust funds may also invest therein any other funds that he holds as a fiduciary, provided he procures the consent of his co-fiduciaries.
D. For the purpose of this Section, the term "trustee" shall include two or more trustees who are members of the same "affiliated group" as defined in Section 1504 of the Internal Revenue Code of 1954, as amended, with respect to any fund established pursuant to this Section, of which any of such trustee is trustee or cotrustee.
Acts 1986, No. 179, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2129. Corporate trustees; deposit of securities in clearing corporation

RS 9:2129 - Corporate trustees; deposit of securities in clearing corporation
A. Unless the trust instrument provides otherwise, a corporate trustee may deposit or arrange for deposit in a clearing corporation securities held by it as fiduciary or as agent for a fiduciary or nonfiduciary, provided the records maintained by the corporate trustee with respect to those securities disclose the capacity in which they are held.
B. Securities deposited in a clearing corporation may be registered in the name of either the clearing corporation or its nominee without disclosing the capacity in which they are held.
C. Securities deposited in a clearing corporation may be stored together with other securities of the same class of the same issuer also stored in the clearing corporation, but not the securities of the clearing corporation, and may be combined with such other securities into one or more securities of the same class of the same issuer.
Added by Acts 1983, No. 346, §1.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2142. Allocation to beneficiaries of income and principal

RS 9:2142 - Allocation to beneficiaries of income and principal
A trust receipt or expense shall be allocated to income or principal or partly to each:
(1) In accordance with the terms of the trust instrument, including any provision giving the trustee discretion, notwithstanding contrary provisions of this Subpart.
(2) In accordance with the provisions of this Subpart, in the absence of contrary provisions of the trust instrument.
(3) If no rule is provided in the trust instrument or this Subpart, in accordance with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal.
Acts 1989, No. 114, §1; Acts 2001, No. 520, §2; Acts 2020, No. 17, §1, eff. Jan. 1, 2021.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2143. Allocation to beneficiaries of usufruct and naked ownership

RS 9:2143 - Allocation to beneficiaries of usufruct and naked ownership
A trust is administered with due regard to the respective interests of beneficiaries of usufruct and naked ownership in the allocation of receipts and expenses to the beneficiary of usufruct or the beneficiary of naked ownership or partly to each:
(1) In accordance with the terms of the trust instrument and the law regulating usufruct, notwithstanding contrary provisions of this Subpart.
(2) In accordance with the provisions of this Subpart, in the absence of applicable law regulating usufruct and if the trust instrument contains no provisions to the contrary.
(3) If neither of the preceding rules applies, in accordance with what is reasonable and equitable in view of the interests of those who are beneficiaries of usufruct as well as those who are beneficiaries of naked ownership.
Acts 2020, No. 17, §1, eff. Jan. 1, 2021.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2144. Income and principal distinguished

RS 9:2144 - Income and principal distinguished
Receipts paid or delivered in return for the use of property forming a part of principal are income, unless this Subpart expressly provides to the contrary.
Receipts paid or delivered in consideration for the sale or other transfer of property forming a part of principal or as the replacement of property forming a part of principal are principal unless this Subpart expressly provides to the contrary.
Acts 2020, No. 17, §1, eff. Jan. 1, 2021.
2023 Louisiana Laws › Revised Statutes › Title 9 - Civil Code-Ancillaries › §9:2145. When right to income arises

RS 9:2145 - When right to income arises
The right of an income beneficiary to income from property in trust arises at the time prescribed in the trust instrument, or, if no time is prescribed and the person receiving the right to income is the first income beneficiary to receive a right to income from the property, then:
(1) At the time the property becomes subject to the trust, with respect to property transferred by inter vivos disposition.
(2) At the time when, under the laws regulating donations mortis causa, the legatee of the same type of legacy free of trust is entitled to receive income from such a legacy, with respect to property transferred by testamentary disposition.
Acts 2020, No. 17, §1, eff. Jan. 1, 2021.