reglab/statecodes huggingface dataset:
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-7. Filing Copy of Trust Instrument as Part of Proceeding

Sec. 7. (Filing Copy of Trust Instrument as Part of Proceeding)
(a) In any proceeding under IC 30-2-14, IC 30-2-15, or this article, any petitioner or other interested person, including but not limited to a trustee or beneficiary, may file a copy of the trust instrument for the trust with the court, to make the trust's terms a part of the court's records. If there is a dispute about whether the trust has been amended or restated or about which version of a trust instrument is a valid version, two (2) or more parties may file copies of different trust instruments or amendments so that the court is aware of their contents.
(b) Permissible methods for filing a copy of the trust instrument with the court under subsection (a) include filing the copy as an exhibit or attachment to a petition for substantive relief under this article. A separate petition to "docket" the trust or to permit the filing of a copy of the trust instrument is not required.
(c) Upon the filing of a copy of the trust instrument with the court, a presumption arises that the trust's terms have been properly presented to the court. The presumption may be rebutted on a showing that:
(1) the court lacks subject matter jurisdiction over the trust; or
(2) the proceeding has not been filed in the proper venue under section 3 of this chapter.
The filing of a copy of a trust instrument under this section does not preclude any interested person from asserting claims or defenses regarding the validity, interpretation, or administration of the trust or from cross-petitioning for relief under this title.
(d) If:
(1) a trustee, beneficiary, or other interested person files a proceeding under IC 30-2-14, IC 30-2-15, or this article with respect to a trust; and
(2) a copy of the trust instrument is not filed with the court under subsection (a);
the court may order any party to file a copy of the trust instrument as a condition to entertaining or hearing a petition for substantive relief with respect to the trust.
(e) The filing of the trust instrument under subsection (a) shall not result in continuing supervisory jurisdiction by the court. Upon conclusion of the proceeding, unless otherwise ordered by the court, the clerk shall remove the trust instrument from the court's records.
Formerly: Acts 1971, P.L.416, SEC.7. As amended by P.L.162-2022, SEC.21.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-8. Bonding

Sec. 8. (a) Unless the terms of the trust provide otherwise, the trustee need not provide a bond to secure the trustee's performance as trustee.
(b) If the trust is subject to continuing supervisory jurisdiction by the court, the court may, on its own motion, direct the trustee to provide a bond to secure performance of the trustee's duties.
(c) Upon petition by an interested party, the court may direct the trustee to provide a bond to secure the trustee's performance, if the court deems it reasonably necessary to protect the interest of any beneficiary.
(d) Unless the terms of the trust provide otherwise, the court may, in its discretion, direct a trustee appointed by the court under IC 30-4-3-33 to file a bond to secure the performance of the trustee's duties.
(e) In any case in which bond is required, unless otherwise specified, the court shall determine the amount, term and surety of the bond to be provided. The court may also excuse a requirement of bond, reduce or increase the amount of the bond, release the surety, or permit substitution of another bond with the same or different sureties.
Formerly: Acts 1971, P.L.416, SEC.7. As amended by P.L.238-2005, SEC.44.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-9. Suit on Bond

Sec. 9. (Suit on Bond)
(a) The court may, on breach of the obligation of the bond of the trustee, after notice to the obligors on the bond and to such other persons as the court directs, determine the damages, and by appropriate proceeding enforce the collection thereof from those liable on the bond. Such determination and enforcement may be made by the court upon its own motion or upon application of a successor trustee, or of any other interested person. Damages may be assessed on behalf of all interested persons and may be paid over to the successor or other non-defaulting trustee or any other person the court may direct.
(b) The bond of the trustee shall not be void upon the first recovery, but may be proceeded upon from time to time until the whole penalty is exhausted.
(c) If the court has already determined the liability of the trustee, the sureties shall not be permitted thereafter to deny such liability in any action or hearing to determine their liability; but the surety may intervene in any hearing to determine the liability of the trustee.
Formerly: Acts 1971, P.L.416, SEC.7.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-10. Representation by Class or Similar Interest

Sec. 10. (Representation by Class or Similar Interest)
Any adjudication involving the interests of persons represented by a personal representative shall be lawful and binding upon all interested persons, whether born or unborn, whether notified or not notified, and whether represented or not, provided, those interested persons are of the same class or have interests similar to the predominant interests of any person so notified or represented.
Formerly: Acts 1971, P.L.416, SEC.7.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-10.5. Persons Who Represent Interests of and Bind Other Persons

Sec. 10.5. (a) Except as provided in the terms of a trust, and to the extent there is not a conflict of interest between the representative and the person represented or among those being represented:
(1) a guardian may represent and bind the protected person who is subject to the guardianship;
(2) an attorney in fact who has authority to act with respect to the particular question or dispute may represent and bind the principal;
(3) a trustee may represent and bind the beneficiaries of the trust;
(4) a personal representative of a decedent's estate may represent and bind persons interested in the estate;
(5) a designated representative appointed for a beneficiary under a provision in a trust instrument may represent and bind the beneficiary of the trust; and
(6) a parent may represent and bind the parent's minor, unborn, or not yet adopted child if a guardian for the child has not been appointed;
with regard to a particular question or dispute.
(b) The holder of a general power of appointment, including a general testamentary power of appointment, may represent and bind persons whose interests are subject to the power of appointment, including:
(1) permissible appointees; and
(2) takers in default.
(c) Unless otherwise represented:
(1) a minor;
(2) an incapacitated person;
(3) an unborn or a not yet adopted child; or
(4) a person whose identity or location is unknown and not reasonably ascertainable;
may be represented by and bound by another person who has a substantially identical interest with respect to the particular question or dispute but only to the extent there is not a conflict of interest between the representative and the person represented.
(d) If the court determines that an interest is not represented under this section or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem to receive notice, give consent, and otherwise represent, bind, and act on behalf of:
(1) a minor;
(2) an incapacitated person;
(3) an unborn child; or
(4) a person whose identity or location is unknown.
If not precluded by conflict of interest, a guardian ad litem may be appointed to represent several persons or interests. A guardian ad litem may act on behalf of the person represented with respect to any matter arising under this title, regardless of whether a judicial proceeding concerning the trust is pending. In making decisions, a guardian ad litem may consider general benefits accruing to the living members of the family of the persons represented.
(e) Notice to a person who may represent and bind another person under this section has the same effect as if notice were given directly to the other person.
(f) The consent of a person who may represent and bind another person under this section is binding on the person represented unless the person represented objects to the representation before the consent would have become effective.
As added by P.L.238-2005, SEC.45. Amended by P.L.221-2019, SEC.8.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-11. Appeals

Sec. 11. (Appeals)
(a) Any person considering himself aggrieved by any decision of a court having jurisdiction in proceedings under this article may prosecute an appeal to the court having jurisdiction of such an appeal. That appeal shall be taken as appeals are taken in civil causes.
(b) In an appeal, the trustee will be entitled to a stay of proceedings without bond.
Formerly: Acts 1971, P.L.416, SEC.7.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-12. Statute of Limitations

Sec. 12. Unless previously barred by adjudication, consent or limitation, any right against a trustee for breach of trust shall be barred as to any beneficiary who has received a final account or other statement fully disclosing the matter and showing termination of the trust relationship between the trustee and the beneficiary unless a proceeding to assert the right is commenced within three (3) years after receipt of the final account or statement if, being an adult, it is received by him personally or if, being a minor or person with a disability, it is received by his personal representative. The rights thus barred do not include the rights to recover from a trustee for fraud, misrepresentation or inadequate disclosure related to the settlement of the trust.
Formerly: Acts 1971, P.L.416, SEC.7. As amended by P.L.99-2007, SEC.195.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 6. Procedure › 30-4-6-13. Application of Rules of Procedure

Sec. 13. (Application of Rules of Procedure)
Except as otherwise provided in this article, the Indiana Rules of Procedure shall apply with respect to procedure in any matter arising under this article.
Formerly: Acts 1971, P.L.416, SEC.7.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-1. Application of Chapter

Sec. 1. This chapter applies to the compromise of a contest or controversy with respect to the following:
(1) The construction, validity, or effect of a trust instrument.
(2) The identity, rights, or interests of a beneficiary of a trust.
(3) The administration of a trust.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-2. Binding Effect of Compromise

Sec. 2. A compromise executed under this chapter is binding on all parties to the compromise, including a party represented by a guardian or guardian ad litem.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-3. Rights of Creditors or Taxing Authorities

Sec. 3. A compromise executed under this chapter does not impair the rights of creditors or taxing authorities that are not parties to the compromise.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-4. Appointment of Guardian or Guardian Ad Litem

Sec. 4. The court may appoint a guardian or a guardian ad litem to represent the following persons or interests in a compromise executed under this chapter if the persons or interests do not have a guardian or guardian ad litem:
(1) A minor.
(2) A person who is without legal capacity to personally act.
(3) A person whose present existence or whereabouts cannot be ascertained.
(4) A person who is not yet born or adopted.
(5) An inalienable estate.
(6) A future contingent interest.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-5. Law Governing Appointment of Guardian or Guardian Ad Litem

Sec. 5. IC 29-1-1-20 applies to the appointment of a guardian or guardian ad litem under section 4 of this chapter.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-6. Agreement of Compromise

Sec. 6. The terms of a compromise executed under this chapter must be set forth in an agreement that is:
(1) in writing; and
(2) executed by all persons or the guardians or guardians ad litem appointed under section 4 of this chapter of all persons who:
(A) have an interest in the trust; or
(B) have a claim against the trust.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-7. Docket of Documents

Sec. 7. After a compromise is executed, an interested person may docket the trust and submit the following documents to the court for the court's approval:
(1) The agreement executed under section 6 of this chapter.
(2) A copy of the trust instrument.
(3) Any other relevant documents.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-8. Notice and Hearing on Agreement

Sec. 8. After notice has been given in the manner directed by the court to:
(1) all interested persons;
(2) the guardians or guardians ad litem of interested persons;
(3) the personal representative of an estate affected by the agreement; and
(4) the trustee of a trust affected by the agreement;
the court shall hold a hearing on the agreement.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-9. Court Order

Sec. 9. If the court finds:
(1) the contest or controversy is in good faith; and
(2) the effect of the agreement on the interests of all the parties is just and reasonable;
the court shall enter an order approving the agreement submitted under section 7 of this chapter and directing the trustee and the parties to the agreement to carry out the terms of the agreement.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 7. Adjudicated Compromise of Controversies › 30-4-7-10. Effect of Entry of Order

Sec. 10. If the court enters an order under section 9 of this chapter, all further disposition of the trust that is within the scope of the agreement shall be made under the terms of the agreement.
As added by P.L.200-1991, SEC.6.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-1. Application

Sec. 1. (a) Subject to the limitations set forth in subsection (b), this chapter applies to:
(1) qualified dispositions to legacy trusts; and
(2) dispositions by transferors who are trustees;
that are made after June 30, 2019.
(b) This chapter does not apply to:
(1) any assets that are listed on an application or financial statement completed by the transferor and which is submitted to a lender in connection with a request to obtain or maintain credit from the lender; or
(2) any assets of a legacy trust that are listed on an application or financial statement completed on behalf of the legacy trust and which is submitted to a lender in connection with a request to obtain or maintain credit from the lender on behalf of the legacy trust.
In the event that assets described in subsection (b)(1) are later transferred to a legacy trust and a default occurs under the loan or extension of credit, either before or after the transfer or disposition under the legacy trust, the lender shall be entitled to proceed against any assets listed on the applications or financial statements which were submitted in connection with the loan, or any modifications, amendments, or renewals of the loan. Nothing in this chapter shall prohibit such action. A change in the character, form, or ownership of the assets described in subsection (b)(1) shall in no way make subsection (b)(1) inapplicable. This subsection shall apply only to the lender that extended credit based on the application or financial statement submitted to the lender and the indebtedness or any portion of the indebtedness owed to the lender remains unpaid.
As added by P.L.221-2019, SEC.9. Amended by P.L.56-2020, SEC.12.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-2. Definitions

Sec. 2. Unless the context requires otherwise, the following definitions apply throughout this chapter:
(1) "Claim" means a right to payment, regardless of whether the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, immature, disputed, undisputed, legal, equitable, secured, or unsecured.
(2) "Creditor" means a person who has a claim against the transferor.
(3) "Debt" means liability on a claim.
(4) "Disposition" means a transfer, conveyance, or assignment of property, including a change in the legal ownership of property that occurs when a trustee is substituted for another trustee or when at least one (1) trustee is added. The term also includes the exercise of a power that causes a transfer of property to a trustee. However, the term does not include the release or relinquishment of an interest in property that, until the release or relinquishment, was the subject of a qualified disposition.
(5) "Investment decision" means the retention, purchase, sale, exchange, tender, or other transaction affecting the ownership of or rights in an investment.
(6) "Legacy trust" means an irrevocable trust established under section 3 of this chapter.
(7) "Lender" means a company or entity that extends credit, including but not limited to a financial institution (as defined by IC 28-1-1-3(1)), a company or entity that extends credit under IC 24-4.4 or IC 24-4.5, or the successors and assigns of the company or entity.
(8) "Person" means an individual at least eighteen (18) years of age, a corporation, a trust, a limited liability company, a limited liability partnership, a partnership, a governmental entity, the state, or a political subdivision of the state.
(9) "Property" means real property, personal property, or an interest in real or personal property.
(10) "Qualified affidavit" means a sworn affidavit executed under section 5 of this chapter.
(11) "Qualified disposition" means a disposition by a transferor to a legacy trust.
(12) "Qualified trustee" means a person qualified to serve as the trustee of a legacy trust under section 6 of this chapter.
(13) "Transferor" means a person who as:
(A) an owner of property;
(B) a holder of a power of appointment that authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate, or the creditors of the holder's estate; or
(C) a trustee;
directly or indirectly makes a disposition or causes a disposition to be made.
(14) "Trust director" means a person given authority by the terms of a legacy trust to direct, consent to, or disapprove actual or proposed investment decisions, distribution decisions, or other decisions related to property in a legacy trust.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-3. Establishment

Sec. 3. A legacy trust is established by:
(1) designating in writing in the trust that the trust is a legacy trust established under this chapter;
(2) including the terms required by section 4 of this chapter in the legacy trust; and
(3) delivering a qualified affidavit containing the statements required by section 5 of this chapter to the qualified trustee.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-4. Requirements

Sec. 4. A legacy trust must do the following:
(1) Provide for the appointment of at least one (1) qualified trustee for the property that is the subject of a qualified disposition.
(2) Expressly incorporate Indiana law to govern the validity, construction, and administration of the trust.
(3) Be irrevocable.
(4) Provide that the interests of the transferor or beneficiary in the trust property or the income from the trust property may not voluntarily or involuntarily be transferred, assigned, pledged, or mortgaged before the qualified trustee actually distributes the property or income to the beneficiary.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-5. Qualified Affidavits

Sec. 5. (a) A qualified affidavit must be signed under the penalties of perjury, and state the following:
(1) That the transferor has full right, title, and authority to transfer the property to the legacy trust.
(2) That the transfer of the property to the legacy trust will not render the transferor insolvent.
(3) That the transferor does not intend to defraud a creditor by transferring the property to the legacy trust.
(4) That there are no pending or threatened court actions against the transferor other than the court actions identified by the transferor and attached to the qualified affidavit.
(5) That the transferor is not involved in any administrative proceedings other than the administrative proceedings identified by the transferor and attached to the qualified affidavit.
(6) That the transferor does not contemplate filing for relief under the federal bankruptcy code.
(7) That the property transferred to the legacy trust is not derived from unlawful activities.
(b) Except as provided in subsection (c), a qualified affidavit must be signed by the transferor.
(c) In the case of a disposition by a transferor who is a trustee, the qualified affidavit must be signed by the transferor who made the original disposition to the trustee. A qualified affidavit signed under this subsection must state the facts as of the time of the original disposition.
(d) If a transferor is a married individual at the time a qualified affidavit is signed, the transferor shall provide a copy of the qualified affidavit to the transferor's spouse.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-6. Qualified Trustees; Duties

Sec. 6. (a) A person may serve as a qualified trustee of a legacy trust if the person is not the transferor and satisfies either of the following requirements:
(1) In the case of an individual, the individual is a resident of Indiana.
(2) In all other cases, the person is:
(A) authorized by Indiana law to act as a trustee; and
(B) subject to the supervision of:
(i) the department of financial institutions; or
(ii) the federal Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or any successor to these agencies.
(b) A qualified trustee shall do the following:
(1) Maintain or arrange for providing custody of the property subject to the qualified disposition in Indiana.
(2) Maintain complete and accurate records for the legacy trust on an exclusive or nonexclusive basis.
(3) Prepare or arrange for the preparation of all required tax returns for the legacy trust.
(4) Materially participate in the administration of the legacy trust.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-7. Prohibited Causes of Action; Effect of Spendthrift Provision

Sec. 7. (a) Except as provided in section 8 of this chapter, no cause of action of any kind, including a cause of action to enforce a judgment, may be brought for:
(1) an attachment or other provisional remedy against property that is the subject of a qualified disposition to a legacy trust; or
(2) the avoidance of a qualified disposition to a legacy trust.
The protections provided to a qualified disposition by this subsection apply notwithstanding any law to the contrary set forth outside this chapter.
(b) If a court declines to apply Indiana law in determining the effect of a spendthrift provision in a legacy trust in an action brought against a legacy trust, the trustee of the legacy trust shall immediately resign and, without further order of any court, cease to be the trustee of the legacy trust. When a trustee resigns under this section, the trustee has the power only to convey the trust property to a successor trustee appointed under this section. A successor trustee shall succeed the resigning trustee in accordance with the terms of the legacy trust. If the trust does not provide for a successor trustee and the trust would otherwise be without a trustee, any beneficiary of the trust may petition an Indiana court to appoint a successor trustee. The Indiana court receiving the petition shall appoint a successor trustee to serve in accordance with the terms and conditions that the court determines are consistent with the purposes of the trust and this chapter.
(c) A legacy trust and its property are protected under this section regardless of whether or not the transferor:
(1) serves as an investment adviser under section 12 of this chapter; or
(2) retains a power described in section 13 of this chapter.
(d) To the maximum extent permitted by the United States Constitution and the Indiana Constitution, a court of this state shall exercise jurisdiction over a legacy trust or a qualified disposition and shall adjudicate a case or controversy brought before the court regarding, arising out of, or related to a legacy trust or a qualified disposition if that case or controversy is otherwise within the subject matter jurisdiction of the court. Subject to the United States Constitution and the Indiana Constitution, a court of this state shall not dismiss or otherwise decline to adjudicate a case or controversy described in this subsection on the grounds that a court of another jurisdiction has acquired or may acquire proper jurisdiction over, or may provide proper venue for, the case or controversy or the parties to the case or controversy. Nothing in this subsection shall be construed to do either of the following:
(1) Prohibit a transfer or other reassignment of a case or controversy from one court of this state to another court of this state.
(2) Expand or limit the subject matter jurisdiction of a court of this state.
As added by P.L.221-2019, SEC.9. Amended by P.L.231-2019, SEC.29.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-9. Creditor's Claims

Sec. 9. (a) If a creditor's claim is allowed under section 8 of this chapter, the transferor's qualified disposition to a legacy trust is subject to the claim only to the extent necessary to satisfy the transferor's debt to the creditor making the allowed claim.
(b) In the event the trustee participates in litigation brought by a lender to enforce its rights under section 1(b) of this chapter, the trustee may recover the fees and costs incurred in such litigation from the trust only after the lender has been paid in full.
(c) If a creditor's claim is allowed under section 8 of this chapter and the creditor has not sought to enforce its rights under section 1(b) of this chapter, the claim is limited as follows:
(1) If the court is satisfied that a qualified trustee has not acted in bad faith in accepting or administering the property that is the subject of the qualified disposition:
(A) the qualified trustee has a first and paramount lien against the property that is the subject of the qualified disposition in an amount equal to the entire cost, including attorney's fees, properly incurred by the qualified trustee in the defense of the action or proceedings filed by the creditor;
(B) the creditor's claim shall be allowed subject to the proper fees, costs, preexisting rights, claims, and interests of the qualified trustee and of any predecessor qualified trustee that has not acted in bad faith; and
(C) it is presumed that the qualified trustee did not act in bad faith merely by accepting the property that is the subject of the qualified disposition.
(2) If the court is satisfied that a beneficiary of a legacy trust has not acted in bad faith, and the distribution was made to the beneficiary before the creditor made the trustee aware of its claim or commenced an action to enforce its claim, the creditor's claim is subject to the right of the beneficiary to retain any distribution made upon the exercise of a trust power or the discretion vested in the qualified trustee that was properly exercised before the trustee was made aware of the claim or an action was commenced to enforce the claim.
As added by P.L.221-2019, SEC.9. Amended by P.L.231-2019, SEC.31.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-10. Spendthrift Provisions

Sec. 10. A spendthrift provision described in section 4(4) of this chapter is considered a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of Section 541(c)(2) of the federal Bankruptcy Code (11 U.S.C. 541(c)(2)) or any successor provision of the federal Bankruptcy Code.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-11. Transferor's Rights and Authority

Sec. 11. Except as permitted by the terms of a legacy trust and by sections 12 and 13 of this chapter, the transferor may not have any rights or authority with respect to the principal or income of the legacy trust. An agreement or understanding purporting to grant or permit the retention of any greater rights or authority is void.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-12. Transferor's Service as an Investment Advisor

Sec. 12. A transferor who makes a qualified disposition may also serve as an investment adviser to the trust. However, the transferor may not serve as a trust director to a legacy trust except with respect to the retention of a veto right permitted by section 13(a)(1) of this chapter.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-13. Revocability

Sec. 13. (a) A legacy trust is not considered revocable because of the inclusion of one (1) or more of the following:
(1) A transferor's power to veto a distribution from the trust.
(2) A power of appointment (other than the power to appoint to the transferor, the transferor's creditors, the transferor's estate, or the creditors of the transferor's estate) that may be exercised by will or other written instrument of the transferor that is effective only upon the transferor's death.
(3) The transferor's potential or actual receipt of income or principal, including a right to income retained in the trust.
(4) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust (as those terms are defined in Section 664 of the Internal Revenue Code).
(5) The transferor's potential or actual receipt of income or principal from a grantor retained annuity trust or grantor retained unitrust that is allowed under Section 2702 of the Internal Revenue Code.
(6) The transferor's potential or actual receipt or use of principal when that potential or actual receipt or use results from a qualified trustee's acting:
(A) in the qualified trustee's discretion;
(B) under a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade, or appropriate property for the benefit of the transferor unless the power of the transferor is limited by an ascertainable standard relating to health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code; or
(C) at the direction of a trust director described in section 14 of this chapter who acts:
(i) in the trust director's discretion; or
(ii) under a standard that governs the distribution of principal and does not confer upon the transferor a power to consume, invade, or appropriate property for the benefit of the transferor unless the power of the transferor is limited by an ascertainable standard relating to health, education, support, or maintenance within the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code.
(7) The transferor's right to remove a trustee or trust director and to appoint a new trustee or trust director as long as that right does not include the appointment of a person who is a related or subordinate party to the transferor within the meaning of Section 672(c) of the Internal Revenue Code.
(8) The transferor's potential or actual use of real property held under a qualified personal residence trust (as defined in Section 2702(c) of the Internal Revenue Code).
(b) For the purpose of subsection (a)(6)(A), a qualified trustee is presumed to have discretion with respect to the distribution of principal unless that discretion is denied to the qualified trustee by the terms of the legacy trust.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-14. Appointment of Trust Directors

Sec. 14. (a) A transferor may appoint one (1) or more trust directors who may have authority under the terms of the trust:
(1) to remove and appoint qualified trustees or trust directors; and
(2) to direct, consent to, or disapprove distributions from the trust.
(b) Trust directors are not required to satisfy the requirements imposed upon trustees by section 6 of this chapter.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-15. Resignation of Qualified Trustee; Appointing Successor Trustees

Sec. 15. If:
(1) a qualified trustee of a legacy trust ceases to meet the requirements of section 6 of this chapter; and
(2) there remains no trustee of the legacy trust that meets the requirements of section 6 of this chapter;
the qualified trustee described in subdivision (1) is considered to have resigned when the qualified trustee ceased to meet the requirements of section 6 of this chapter, and a successor trustee provided for in the legacy trust shall become a qualified trustee. If the legacy trust does not provide for a successor qualified trustee, a court shall appoint a successor qualified trustee upon the application of any interested party.
As added by P.L.221-2019, SEC.9.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 8. Legacy Trusts › 30-4-8-16. Rights of a Lender; Notice of Transfer of Assets

Sec. 16. (a) Nothing in this chapter shall be construed to prohibit a lender from enforcing its rights in property identified in section 1(b) of this chapter and, to the extent necessary, naming the legacy trust or trustee of the trust as a defendant to the action or proceeding.
(b) If an asset described in section 1(b)(1) of this chapter is transferred to a legacy trust or trustee of a legacy trust, the transferor of that asset must send written notice of the transfer to the pertinent lender within fifteen (15) days after that transfer. The transferor must send the notice by certified mail, return receipt requested, to the registered agent for the lender. If there is no registered agent for the lender, the transferor must send notice to one (1) of the following:
(1) The last known address of the lender.
(2) The last address specified by the lender for mailing payments on the obligations.
(3) The address specified by the lender for general inquiries by customers.
The notice must include the name of the transferor, a description of the asset transferred, the name of the trustee, and the date that the transfer was completed. Upon request, the transferor or trustee shall provide the lender with a certification of the trust under IC 30-4-4-5, the names and addresses of the qualified beneficiaries of the trust, and copies of the pages from the trust instrument that identify the current trustee and describe the trustee's administrative powers and duties.
(c) Nothing in this chapter shall be construed to authorize any disposition that is prohibited by the terms of any agreements, notes, guaranties, mortgages, indentures, instruments, undertakings, or other documents. Any provisions that prohibit such transfer or disposition shall be binding and shall make this chapter inapplicable, so long as any indebtedness remains outstanding in connection with such agreements, notes, guaranties, mortgages, indentures, instruments, undertakings, or other similar documents.
(d) In the event of a conflict between this section and any other provision of this chapter, this section shall control.
As added by P.L.221-2019, SEC.9. Amended by P.L.231-2019, SEC.32; P.L.56-2020, SEC.14; P.L.32-2021, SEC.87.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-2. Definitions

Sec. 2. As used in this chapter, the following definitions apply:
(1) "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, this chapter, or the law of this state other than this chapter.
(2) "Directed trust" means a trust for which the terms of the trust grant a power of direction.
(3) "Directed trustee" means a trustee that is subject to a trust director's power of direction.
(4) "Person" means an individual, estate, business or nonprofit entity, public corporation, government or government subdivision, agency, or instrumentality or other legal entity.
(5) "Power of direction" means a power over a trust granted to a person by the terms of the trust to the extent the power is exercisable while the person is not serving as a trustee. The term includes a power over the investment, management, or distribution of trust property or other matters of trust administration. The term excludes the powers described in section 5(b) of this chapter.
(6) "Settlor" means a person, including a testator, that creates, or contributes property to, a trust. If more than one (1) person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion.
(7) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any other territory or possession subject to the jurisdiction of the United States.
(8) "Terms of a trust" means:
(A) except as otherwise provided in clause (B), the manifestation of the settlor's intent regarding a trust's provisions as:
(i) expressed in the trust instrument; or
(ii) established by other evidence that would be admissible in a judicial proceeding; or
(B) the trust's provisions as established, determined, or amended by:
(i) a trustee or trust director in accordance with applicable law; or
(ii) court order.
(9) "Trust director" means a person that is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee. The person is a trust director whether or not the terms of the trust refer to the person as a trust director and whether or not the person is a beneficiary or settlor of the trust.
(10) "Trustee" includes an original, additional, and successor trustee, and a cotrustee.
(11) "Willful misconduct" means intentional wrongdoing, and not mere negligence, gross negligence, or recklessness.
(12) "Wrongdoing" means malicious conduct or conduct designed to defraud or to seek an unconscionable advantage.
As added by P.L.221-2019, SEC.10. Amended by P.L.156-2020, SEC.112.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-3. Application

Sec. 3. (a) This chapter applies to a trust, whenever created, that has its principal place of administration in Indiana, subject to the following:
(1) If the trust was created before July 1, 2019, this chapter applies only to a decision or action occurring after June 30, 2019.
(2) If the principal place of administration of the trust is changed to Indiana after June 30, 2019, this chapter applies only to a decision or action occurring on or after the date of the change.
(b) Without precluding other means to establish a sufficient connection with the designated jurisdiction in a directed trust, the terms of the trust that designate the principal place of administration of the trust are valid and controlling if:
(1) a trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction;
(2) a trust director's principal place of business is located in or a trust director is a resident of the designated jurisdiction; or
(3) all or part of the administration occurs in the designated jurisdiction.
As added by P.L.221-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-4. Applicable Law

Sec. 4. The common law and principles of equity supplement this chapter, except to the extent modified by this chapter or law of Indiana other than this chapter.
As added by P.L.221-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-5. Powers of Appointment

Sec. 5. (a) As used in this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over trust property.
(b) This chapter does not apply to a:
(1) power of appointment;
(2) power to appoint or remove a trustee or trust director;
(3) power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
(4) power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficiary interest of:
(A) the beneficiary; or
(B) another beneficiary represented by the beneficiary with respect to the exercise or nonexercise of the power; or
(5) power over a trust if:
(A) the terms of the trust provide that the power is held in a nonfiduciary capacity; and
(B) the power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the Internal Revenue Code.
(c) Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in or power of appointment over trust property that is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
As added by P.L.221-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-6. Powers of Direction

Sec. 6. (a) Subject to section 7 of this chapter, the terms of the trust may grant a power of direction to a trust director.
(b) Unless the terms of a trust provide otherwise:
(1) a trust director may exercise any further power appropriate to the exercise or nonexercise of a power of direction granted to the director under subsection (a); and
(2) trust directors with joint powers must act by majority decision.
As added by P.L.221-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-7. Rules Relating to Payback Provisions; Charitable Interest

Sec. 7. A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under section 6(b)(1) of this chapter regarding:
(1) a payback provision in the terms of a trust necessary to comply with the reimbursement requirements under 42 U.S.C. 1396p(d)(4)(A); or
(2) a charitable interest in the trust, including notice regarding the interest to the attorney general under IC 30-4-6-6.
As added by P.L.221-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-8. Duties and Liabilities of a Trust Director

Sec. 8. (a) Subject to subsection (b), with respect to a power of direction or further power under section 6(b)(1) of this chapter:
(1) a trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power:
(A) if the power is held individually, as a sole trustee in a like position and under similar circumstances; or
(B) if the power is held jointly with a trustee or another trust director, as a cotrustee in a like position and under similar circumstances; and
(2) the terms of the trust may vary the director's duty or liability to the same extent the terms of the trust could vary the duty or liability of a trustee in a like position and under similar circumstances.
(b) Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or otherwise authorized or permitted by law other than this chapter to provide health care in the ordinary course of the director's business or practice of a profession, to the extent the director acts in that capacity, the director has no duty or liability under this chapter.
(c) The terms of a trust may impose a duty or liability on a trust director in addition to the duties and liabilities under this section.
As added by P.L.221-2019, SEC.10.
2023 Indiana Code › Title 30. Trusts and Fiduciaries › Article 4. Trust Code › Chapter 9. Uniform Directed Trust Act › 30-4-9-9. Duties and Liabilities of a Directed Trustee

Sec. 9. (a) Subject to subsection (b), a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under section 6(b)(1) of this chapter, and the trustee is not liable for the action.
(b) A directed trustee must not comply with a trust director's exercise or nonexercise of a power of direction or further power under section 6(b)(1) of this chapter to the extent that by complying the trustee would engage in willful misconduct.
(c) An exercise of power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if:
(1) the breach involved the trustee's or other director's willful misconduct;
(2) the release was induced by improper conduct of the trustee or other director in procuring the release; or
(3) at the time of the release, the director did not know the material facts relating to the breach.
(d) A directed trustee that has reasonable doubt about the directed trustee's duty under this section may petition the court for instructions.
(e) The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section.
As added by P.L.221-2019, SEC.10.