reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 6. Revocable Trusts › 72-38-604. Limitation on action contesting validity of revocable trust -- distribution of trust property

72-38-604. Limitation on action contesting validity of revocable trust -- distribution of trust property.
(1) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of:
(a) 3 years after the settlor's death; or
(b) 120 days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding.
(2) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:
(a) the trustee knows of a pending judicial proceeding contesting the validity of the trust; or
(b) a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(3) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.
History: En. Sec. 76, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 6. Revocable Trusts › 72-38-605. Fees and expenses -- by whom paid

72-38-605. Fees and expenses -- by whom paid.
When the validity of a trust that was revocable at the settlor's death is contested through a judicial proceeding, the attorney fees and costs, as provided in 25-10-201, incurred in defending the validity of the trust must be paid by the party contesting the validity of the trust if the trust is found valid. If the trust is found invalid, costs as provided in 25-10-201, but not attorney fees of the objecting party, must be paid by the party who defended the validity of the trust or out of the trust property, as the court directs.
History: En. Sec. 77, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 6. Revocable Trusts › 72-38-606. Separate writing identifying disposition of tangible personal property

72-38-606. Separate writing identifying disposition of tangible personal property.
(1) A revocable trust instrument may refer to a written statement or list to dispose of items of tangible personal property not otherwise specifically disposed of by the trust, other than money.
(2) To be admissible under this section as evidence of the intended disposition, the writing must be signed by the settlor and must describe the items and the devisees with reasonable certainty.
(3) The writing may be:
(a) referred to as one to be in existence at the time of the settlor's death;
(b) prepared before or after the execution of the trust;
(c) altered by the settlor after its preparation; and
(d) a writing that has no significance apart from its effect upon the dispositions made by the trust.
History: En. Sec. 78, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-701. Accepting or declining trusteeship

72-38-701. Accepting or declining trusteeship.
(1) Except as otherwise provided in subsection (3), a person designated as trustee accepts the trusteeship:
(a) by substantially complying with a method of acceptance provided in the terms of the trust; or
(b) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship.
(2) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is considered to have rejected the trusteeship.
(3) A person designated as trustee, without accepting the trusteeship, may:
(a) act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and
(b) inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
History: En. Sec. 79, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-702. Trustee's bond

72-38-702. Trustee's bond.
(1) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement.
(2) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. The court may modify or terminate a bond at any time.
(3) A regulated financial-service institution qualified to do trust business in this state need not give bond, even if required by the terms of the trust.
History: En. Sec. 80, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-703. Cotrustees

72-38-703. Cotrustees.
(1) Cotrustees who are unable to reach a unanimous decision may act by majority decision.
(2) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.
(3) Subject to 72-40-116, a cotrustee shall participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law, or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.
(4) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law, or other temporary incapacity and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.
(5) A trustee may not delegate to a cotrustee the performance of a function the settlor reasonably expected the trustees to perform jointly. Unless a delegation was irrevocable, a trustee may revoke a delegation previously made.
(6) Except as otherwise provided in subsection (7), a trustee who does not join in an action of another trustee is not liable for the action.
(7) Subject to 72-40-116, each trustee shall exercise reasonable care to:
(a) prevent a cotrustee from committing a serious breach of trust; and
(b) compel a cotrustee to redress a serious breach of trust.
(8) A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notifies any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.
History: En. Sec. 81, Ch. 264, L. 2013; amd. Sec. 23, Ch. 325, L. 2021.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-704. Vacancy in trusteeship -- appointment of successor

72-38-704. Vacancy in trusteeship -- appointment of successor.
(1) A vacancy in a trusteeship occurs if:
(a) a person designated as trustee rejects the trusteeship;
(b) a person designated as trustee cannot be identified or does not exist;
(c) a trustee resigns;
(d) a trustee is disqualified or removed;
(e) a trustee dies;
(f) a guardian or conservator is appointed for an individual serving as trustee; or
(g) a trustee has been ordered committed as provided in 53-21-102.
(2) If one or more cotrustees remain in office, a vacancy in a trusteeship need not be filled. A vacancy in a trusteeship must be filled if the trust has no remaining trustee.
(3) A vacancy in a trusteeship of a trust that is required to be filled must be filled in the following order of priority:
(a) by a person designated in the terms of the trust to act as successor trustee;
(b) by a person appointed by unanimous agreement of the qualified beneficiaries; or
(c) by a person appointed by the court.
(4) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.
History: En. Sec. 82, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-705. Resignation of trustee

72-38-705. Resignation of trustee.
(1) A trustee may resign:
(a) upon at least 30 days' notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or
(b) with the approval of the court.
(2) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property.
(3) Any liability of a resigning trustee or of any sureties on the trustee's bond for acts or omissions of the trustee is not discharged or affected by the trustee's resignation.
History: En. Sec. 83, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-706. Removal of trustee

72-38-706. Removal of trustee.
(1) The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.
(2) The court may remove a trustee if:
(a) the trustee has committed a serious breach of trust;
(b) lack of cooperation among cotrustees substantially impairs the administration of the trust;
(c) because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively and impartially, the court determines that removal of the trustee best serves the interests of the beneficiaries; or
(d) there has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available.
(3) Pending a final decision on a request to remove a trustee or in lieu of or in addition to removing a trustee, the court may order appropriate relief under 72-38-1001(2) as may be necessary to protect the trust property or the interests of the beneficiaries.
History: En. Sec. 84, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-707. Delivery of property by former trustee

72-38-707. Delivery of property by former trustee.
(1) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.
(2) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee, or other person entitled to it. If a trustee fails to deliver trust property as required in this subsection:
(a) the resigned or removed trustee is personally liable for the actual damages incurred as a result of the failure to deliver trust property; and
(b) the court, in its discretion, may order the resigned or removed trustee personally to pay the reasonable attorney fees incurred in enforcing the resigned or removed trustee's duty to deliver trust property.
History: En. Sec. 85, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-708. Compensation of trustee

72-38-708. Compensation of trustee.
(1) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.
(2) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if:
(a) the duties of the trustee are substantially different from those contemplated when the trust was created; or
(b) the compensation specified by the terms of the trust would be unreasonably low or high.
History: En. Sec. 86, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 7. Office of Trustee › 72-38-709. Reimbursement of expenses

72-38-709. Reimbursement of expenses.
(1) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for:
(a) expenses that were properly incurred in the administration of the trust; and
(b) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.
(2) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.
History: En. Sec. 87, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-801. Duty to administer trust

72-38-801. Duty to administer trust.
Upon acceptance of a trusteeship, the trustee shall administer the trust expeditiously and in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter.
History: En. Sec. 88, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-803. Impartiality

72-38-803. Impartiality.
If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.
History: En. Sec. 90, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-804. Prudent administration

72-38-804. Prudent administration.
A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
History: En. Sec. 91, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-805. Costs of administration

72-38-805. Costs of administration.
In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.
History: En. Sec. 92, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-806. Trustee's skills

72-38-806. Trustee's skills.
A trustee who has special skills or expertise or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise shall use those special skills or expertise.
History: En. Sec. 93, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-807. Delegation by trustee

72-38-807. Delegation by trustee.
(1) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in:
(a) selecting an agent;
(b) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and
(c) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the terms of the delegation.
(2) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.
(3) A trustee who complies with subsection (1) is not liable to the beneficiaries or to the trust for an action of the agent to whom the function was delegated.
(4) By accepting a delegation of powers or duties from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state.
History: En. Sec. 94, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-808. Repealed

72-38-808. Repealed.
Sec. 24, Ch. 325, L. 2021.
History: En. Sec. 95, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-809. Control and protection of trust property

72-38-809. Control and protection of trust property.
A trustee shall take reasonable steps to take control of and protect the trust property.
History: En. Sec. 96, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-810. Recordkeeping and identification of trust property

72-38-810. Recordkeeping and identification of trust property.
(1) A trustee shall keep adequate records of the administration of the trust.
(2) A trustee shall keep trust property separate from the trustee's own property.
(3) Except as otherwise provided in subsection (4), a trustee shall designate the trust property so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.
(4) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts.
History: En. Sec. 97, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-811. Enforcement and defense claims

72-38-811. Enforcement and defense claims.
A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.
History: En. Sec. 98, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-812. Collecting trust property

72-38-812. Collecting trust property.
A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee and to redress a breach of trust known to the trustee to have been committed by a former trustee.
History: En. Sec. 99, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-814. Discretionary powers -- tax savings

72-38-814. Discretionary powers -- tax savings.
(1) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute", "sole", or "uncontrolled", the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
(2) Subject to subsection (4) and unless the terms of the trust expressly indicate that a rule in this subsection does not apply:
(a) a person other than a settlor who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard; and
(b) a trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.
(3) A power whose exercise is limited or prohibited by subsection (2) may be exercised by a majority of the remaining trustees whose exercise of the power is not so limited or prohibited. If the power of all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power.
(4) Subsection (2) does not apply to:
(a) a power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in section 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter or as later amended, was previously allowed;
(b) any trust during any period that the trust may be revoked or amended by its settlor; or
(c) a trust if contributions to the trust qualify for the annual exclusion under section 2503(c) of the Internal Revenue Code of 1986, as in effect on the effective date of this chapter or as later amended.
History: En. Sec. 101, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-815. General powers of trustee

72-38-815. General powers of trustee.
(1) A trustee, without authorization by the court, may exercise:
(a) powers conferred by the terms of the trust; and
(b) except as limited by the terms of the trust:
(i) all powers over the trust property that an unmarried competent owner has over individually owned property;
(ii) any other powers appropriate to achieve the proper investment, management, and distribution of the trust property; and
(iii) any other powers conferred by this chapter.
(2) The exercise of a power is subject to the fiduciary duties prescribed by 72-38-801 through 72-38-817.
History: En. Sec. 102, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-817. Distribution upon termination

72-38-817. Distribution upon termination.
(1) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within 30 days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
(2) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
(3) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent:
(a) it was induced by improper conduct of the trustee; or
(b) the beneficiary, at the time of the release, did not know of the beneficiary's rights or of the material facts relating to the breach.
History: En. Sec. 104, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-820. Definitions

72-38-820. Definitions.
As used in 72-38-820 through 72-38-826, the following definitions apply:
(1) "Charitable trust" means a charitable trust as described in section 4947(a)(1) of the Internal Revenue Code.
(2) "Private foundation" means a private foundation as defined in section 509 of the Internal Revenue Code.
(3) "Split-interest trust" means a split-interest trust as described in section 4947(a)(2) of the Internal Revenue Code.
History: En. Sec. 105, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-821. Distribution under charitable trust or private foundation

72-38-821. Distribution under charitable trust or private foundation.
During any period when a trust is considered to be a charitable trust or a private foundation, the trustee shall distribute its income for each taxable year (and principal if necessary) at a time and in a manner that will not subject the property of the trust to tax under section 4942 of the Internal Revenue Code.
History: En. Sec. 106, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-822. Restrictions on trustees under charitable trust, private foundations, or split-interest trust

72-38-822. Restrictions on trustees under charitable trust, private foundations, or split-interest trust.
During any period when a trust is considered to be a charitable trust, a private foundation, or a split-interest trust, the trustee may not do any of the following:
(1) engage in any act of self-dealing as defined in section 4941(d) of the Internal Revenue Code;
(2) retain any excess business holdings as defined in section 4943(c) of the Internal Revenue Code;
(3) make any investments in a manner that subjects the property of the trust to tax under section 4944 of the Internal Revenue Code; or
(4) make any taxable expenditure as defined in section 4945(d) of the Internal Revenue Code.
History: En. Sec. 107, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-823. Exceptions applicable to split-interest trusts

72-38-823. Exceptions applicable to split-interest trusts.
(1) Subsections (2) and (3) of 72-38-822 do not apply to any trust described in section 4947(b)(3) of the Internal Revenue Code.
(2) Section 72-38-822 does not apply with respect to any of the following:
(a) any amounts payable under the terms of a trust to income beneficiaries unless a deduction was allowed under section 170(f)(2)(B), 2055(e)(2)(B), or 2522(c)(2)(B) of the Internal Revenue Code;
(b) any amounts in trust other than amounts for which a deduction was allowed under section 170, 545(b)(2), 556(b)(2), 642(c), 2055, 2106(a)(2), or 2522 of the Internal Revenue Code if the amounts are segregated, as that term is defined in section 4947(a)(3) of the Internal Revenue Code, from amounts for which no deduction was allowable; or
(c) any amounts irrevocably transferred in trust before May 27, 1969.
History: En. Sec. 108, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-824. Incorporation in trust instruments

72-38-824. Incorporation in trust instruments.
The provisions of 72-38-821 through 72-38-823 and 72-38-826 must be considered to be contained in the terms of the trust to which 72-38-820 through 72-38-826 apply. Any term of the trust inconsistent with or contrary to 72-38-820 through 72-38-826 is without effect unless that term is more restrictive.
History: En. Sec. 109, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-825. Proceedings

72-38-825. Proceedings.
(1) A proceeding contemplated by section 101(l)(3) of the federal Tax Reform Act of 1969 (Public Law 91-172) may be commenced pursuant to 72-38-213 by the organization involved. All specifically named beneficiaries of the organization and the attorney general must be parties to the proceedings. Notwithstanding 72-38-201, this provision is not exclusive and does not limit any jurisdiction that otherwise exists.
(2) If an instrument creating a trust affected by this section has been recorded, a notice of pendency of judicial proceedings under this section must be recorded in a similar manner within 10 days from the commencement of the proceedings. A duly certified copy of any final judgment or decree in the proceedings must be similarly recorded.
History: En. Sec. 110, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 8. Duties and Powers of Trustee › 72-38-826. Disposition of property upon termination of a charitable trust, private foundation, or split-interest trust

72-38-826. Disposition of property upon termination of a charitable trust, private foundation, or split-interest trust.
At the termination of a charitable trust, private foundation organized as a trust, or any other trust described in section 501(c)(3) of the Internal Revenue Code, the trust property must be distributed for one or more exempt purposes or to organizations that are organized and operated exclusively for exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code or must be distributed to the federal government or to a state or local government for a public purpose. At the termination of a split-interest trust, the charitable portion of the trust property must be distributed to one or more organizations described in sections 170(c), 2055(a), and 2522(a) of the Internal Revenue Code.
History: En. Sec. 111, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 9. Uniform Prudent Investor Act › 72-38-901. Prudent investor rule

72-38-901. Prudent investor rule.
(1) Except as provided in subsection (2), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule.
(2) The settlor may expand or restrict the prudent investor rule by express provisions in the trust instrument. A trustee is not liable to a beneficiary for the trustee's good faith reliance on these express provisions.
History: En. Sec. 112, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 9. Uniform Prudent Investor Act › 72-38-902. Standard of care -- investments and management -- considerations

72-38-902. Standard of care -- investments and management -- considerations.
(1) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.
(2) A trustee's investment and management decisions respecting individual assets and courses of action must be evaluated not in isolation, but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
(3) Among circumstances that are appropriate to consider in investing and managing trust assets are the following, to the extent relevant to the trust or its beneficiaries:
(a) general economic conditions;
(b) the possible effect of inflation or deflation;
(c) the expected tax consequences of investment decisions or strategies;
(d) the role that each investment or course of action plays within the overall trust portfolio;
(e) the expected total return from income and the appreciation of capital;
(f) other resources of the beneficiaries known to the trustee as determined from information provided by the beneficiaries;
(g) needs for liquidity, regularity of income, and preservation or appreciation of capital; and
(h) an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries.
(4) A trustee shall make a reasonable effort to ascertain facts relevant to the investment and management of trust assets.
(5) A trustee may invest in any kind of property or type of investment or engage in any course of action or investment strategy consistent with the standards of this Act.
History: En. Sec. 113, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 9. Uniform Prudent Investor Act › 72-38-903. Diversification -- duty of trustee -- exception

72-38-903. Diversification -- duty of trustee -- exception.
(1) Subject to subsection (2), in making and implementing investment decisions, the trustee has a duty to diversify the investments of the trust unless, under the circumstances, it is not prudent to do so.
(2) If trust assets include farm or ranch property, a closely held family business, timber interests, or interests in oil, gas, or minerals, the trustee may elect to retain those assets. A trustee's exercise of discretion to retain assets of the character described in this subsection is not a breach of the trustee's duty to diversify investments.
History: En. Sec. 114, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 9. Uniform Prudent Investor Act › 72-38-904. Review of assets -- time for compliance

72-38-904. Review of assets -- time for compliance.
Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements, and other circumstances of the trust and with the requirements of this part.
History: En. Sec. 115, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 9. Uniform Prudent Investor Act › 72-38-905. Compliance determinations -- standards

72-38-905. Compliance determinations -- standards.
Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action and not by hindsight.
History: En. Sec. 116, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 9. Uniform Prudent Investor Act › 72-38-906. Interpretation of trust terms construing legal investments

72-38-906. Interpretation of trust terms construing legal investments.
The following terms or comparable language in the provisions of a trust, unless otherwise limited or modified, must be construed as authorizing any investment or strategy permitted under this part: "investments permissible by law for investment of trust funds", "legal investments", "authorized investments", "using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital", "prudent man rule", "prudent trustee rule", "prudent person rule", and "prudent investor rule".
History: En. Sec. 117, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1001. Remedies for breach of trust

72-38-1001. Remedies for breach of trust.
(1) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.
(2) To remedy a breach of trust that has occurred or may occur, the court may:
(a) compel the trustee to perform the trustee's duties;
(b) enjoin the trustee from committing a breach of trust;
(c) compel the trustee to redress a breach of trust by paying money, restoring property, or other means;
(d) order a trustee to account;
(e) appoint a special fiduciary to take possession of the trust property and administer the trust;
(f) suspend the trustee;
(g) remove the trustee as provided in 72-38-706;
(h) reduce or deny compensation to the trustee;
(i) subject to 72-38-1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds; or
(j) order any other appropriate relief.
History: En. Sec. 118, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1002. Damages for breach of trust

72-38-1002. Damages for breach of trust.
(1) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of:
(a) any loss or depreciation in value of the trust estate resulting from the breach of trust, with interest;
(b) the profit the trustee made by reason of the breach of trust, with interest; or
(c) any profit that would have accrued to the trust estate if the loss of profit is the result of the breach of trust.
(2) Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the fiduciary duties of the trustee, the terms or purposes of the trust, or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.
(3) If the trustee is liable for interest pursuant to this section, interest must be determined as the greater of the following amounts:
(a) the amount of interest that accrues at the legal rate on judgments; or
(b) the amount of interest the trustee actually received as a result of the breach of trust.
History: En. Sec. 119, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1003. Damages in absence of breach

72-38-1003. Damages in absence of breach.
(1) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust.
(2) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.
History: En. Sec. 120, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1004. Attorney fees and costs

72-38-1004. Attorney fees and costs.
In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney fees, to any party, to be paid by another party or from the trust that is the subject of the controversy.
History: En. Sec. 121, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1005. Limitation of action against trustee

72-38-1005. Limitation of action against trustee.
(1) A beneficiary may not commence a proceeding against a trustee for breach of trust more than 3 years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed the beneficiary of the time allowed for commencing a proceeding.
(2) A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.
(3) If subsection (1) does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within 5 years after the first to occur of:
(a) the removal, resignation, or death of the trustee;
(b) the termination of the beneficiary's interest in the trust; or
(c) the termination of the trust.
History: En. Sec. 122, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1006. Reliance on trust instrument

72-38-1006. Reliance on trust instrument.
A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
History: En. Sec. 123, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1007. Event affecting administration or distribution

72-38-1007. Event affecting administration or distribution.
If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.
History: En. Sec. 124, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1008. Exculpation of trustee

72-38-1008. Exculpation of trustee.
(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
(a) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the fiduciary duties of the trustee, the terms or purposes of the trust, or the interests of the beneficiaries;
(b) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor; or
(c) relieves the trustee of accountability for profits derived from a breach of trust.
(2) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
History: En. Sec. 125, Ch. 264, L. 2013; amd. Sec. 4, Ch. 181, L. 2015.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1009. Beneficiary's consent, release, or ratification

72-38-1009. Beneficiary's consent, release, or ratification.
A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach unless:
(1) the consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or
(2) at the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.
History: En. Sec. 126, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1010. Limitation on personal liability of trustee

72-38-1010. Limitation on personal liability of trustee.
(1) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.
(2) A trustee is personally liable for torts committed in the course of administering a trust or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.
(3) A claim based on a contract entered into by a trustee in the trustee's fiduciary capacity, on an obligation arising from ownership or control of trust property, or on a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.
History: En. Sec. 127, Ch. 264, L. 2013.
2023 Montana Code Annotated › Title 72. Estates, Trusts, and Fiduciary Relationships › Chapter 38. Montana Uniform Trust Code › Part 10. Liability of Trustees and Rights of Persons Dealing with Trustee › 72-38-1011. Interest as general partner

72-38-1011. Interest as general partner.
(1) Unless personal liability is imposed in the contract, a trustee who in the trustee's fiduciary capacity holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Montana Uniform Partnership Act or the Montana Uniform Limited Partnership Act. The addition of the phrase "trustee" or "as trustee" or a similar designation to the signature of a trustee on a written contract is satisfactory disclosure of the fiduciary capacity.
(2) A trustee who, in the trustee's fiduciary capacity, holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest, but this does not affect the liability of the trustee for the trustee's own negligence, wrongful act, or misconduct.
(3) If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.
History: En. Sec. 128, Ch. 264, L. 2013.