Sec. 5. (a) If the duty of the trustee in the exercise of any power conflicts with the trustee‘s individual interest or the trustee’s interest as trustee of another trust, the power may be exercised only under one (1) of the following circumstances:

(1) The trustee receives court authorization to exercise the power with notice to interested persons as the court may direct.

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Terms Used In Indiana Code 30-4-3-5

  • Affiliate: means a parent, descendant, spouse, spouse of a descendant, brother, sister, spouse of a brother or sister, employee, director, officer, partner, joint venturer, a corporation subject to common control with the trustee, a shareholder, or corporation who controls the trustee or a corporation controlled by the trustee other than as a fiduciary, an attorney, or an agent. See Indiana Code 30-4-1-2
  • Court: means a court having jurisdiction over trust matters. See Indiana Code 30-4-1-2
  • 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
(2) The trustee gives notice of the proposed action in accordance with IC 30-2-14-16 and:

(A) the trustee receives the written authorization of all interested persons to the proposed action within the period specified in the notice of the proposed action; or

(B) a beneficiary objects to the proposed action within the period specified in the notice of the proposed action, but the trustee receives court authorization to exercise the power.

(3) The exercise of the power is specifically authorized by the terms of the trust.

     (b) For purposes of this section, the interest of an affiliate of the trustee will be deemed to be the interest of the trustee.

Formerly: Acts 1971, P.L.416, SEC.4. As amended by P.L.61-2006, SEC.7.

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