Sec. 1. (a) Except as otherwise provided in subsection (b), a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule set forth in this chapter.

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Terms Used In Indiana Code 30-4-3.5-1

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • Fiduciary: A trustee, executor, or administrator.
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: has the meaning set forth in IC 30-2-14-13. See Indiana Code 30-4-1-2
     (b) The prudent investor rule, a default rule, may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on the provision of the trust.

     (c) This chapter applies to a trustee or escrow agent, acting as fiduciary, of:

(1) a perpetual care fund established under IC 23-14-48-2;

(2) a prepaid funeral plan or funeral trust established under IC 30-2-9;

(3) a funeral trust established under IC 30-2-10; or

(4) a trust or escrow account created from payments of funeral, burial services, or merchandise in advance of need, as described in IC 30-2-13.

As added by P.L.137-1999, SEC.3. Amended by P.L.61-2008, SEC.14; P.L.33-2019, SEC.14.

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