Montana Code 72-38-813. Duty to inform and report
72-38-813. Duty to inform and report. A trustee shall comply with the following provisions unless the trust instrument specifically limits or waives any of these requirements:
Terms Used In Montana Code 72-38-813
- Appraisal: A determination of property value.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: means a person who:
(a)has a present or future beneficial interest in a trust, vested or contingent; or
(b)in a capacity other than that of trustee, holds a power of appointment over trust property. See Montana Code 72-38-103
- Conservator: means a person appointed by the court to administer the estate of a minor or adult individual. See Montana Code 72-38-103
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Property: means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein. See Montana Code 72-38-103
- Qualified beneficiary: means a beneficiary who on the date the beneficiary's qualification is determined:
(a)is a distributee or permissible distributee of trust income or principal;
(b)would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subsection (16)(a) terminated on that date without causing the trust to terminate; or
(c)would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date. See Montana Code 72-38-103
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Settlor: means a person, including a testator, who creates or contributes property to a trust. See Montana Code 72-38-103
- Trust instrument: means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto. See Montana Code 72-38-103
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee and a cotrustee. See Montana Code 72-38-103
(1)A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. A trustee shall promptly respond to a qualified beneficiary‘s request for information that is reasonably necessary to enable the qualified beneficiary to enforce the rights of the qualified beneficiary under the trust or to prevent or redress a breach of trust.
(2)A trustee:
(a)upon request of any beneficiary, shall promptly furnish to the beneficiary a copy of the portions of the trust instrument that describe or affect the beneficiary’s interest;
(b)within 60 days after accepting a trusteeship, shall notify the qualified beneficiaries of the acceptance and of the trustee’s name, address, and telephone number;
(c)within 60 days after the date the trustee acquires knowledge of the creation of an irrevocable trust or the date the trustee acquires knowledge that a formerly revocable trust has become irrevocable, whether by the death of the settlor or otherwise, shall notify the qualified beneficiaries of the trust’s existence, of the identity of the settlor or settlors, of the right to request a copy of portions of the trust instrument as provided in subsection (2)(a), and of the right to a trustee’s report as provided in subsection (3); and
(d)shall notify the qualified beneficiaries in advance of any change in the method or rate of the trustee’s compensation.
(3)A trustee shall send to the distributees or permissible distributees of trust income or principal and to other qualified beneficiaries who request it, at least annually, on a calendar year or fiscal year basis consistent with tax reporting requirements and at the termination of the trust, a report of the trust property, liabilities, receipts, and disbursements, including the source and amount of the trustee’s compensation, a listing of the trust assets and, if feasible, their respective market values including any cash, cash equivalents, stocks, bonds, mutual funds, or other securities, investments, or investment property held by the trustee as of the last business day of the calendar year or fiscal period, if the fair market value is readily ascertainable or the property is traded on an established public market. An appraisal or statement of fair market value may not be required for any real estate, closely held business, or other property held by the trustee as of that date if the fair market value is not readily ascertainable or traded on an established public market. A qualified beneficiary must also receive, upon request, copies of any applicable income, estate, or transfer tax returns relevant to the administration of the trust. Upon a vacancy in a trusteeship, unless a cotrustee remains in office, a report must be sent to the qualified beneficiaries by the former trustee. A personal representative, conservator, or guardian may send the qualified beneficiaries a report on behalf of a deceased or incapacitated trustee.
(4)A qualified beneficiary may waive the right to a trustee’s report or other information otherwise required to be furnished under this section. A qualified beneficiary, with respect to future reports and other information, may withdraw a waiver previously given.
(5)Subsections (2)(b) and (2)(c) do not apply to a trustee who accepts a trusteeship before October 1, 2013, to an irrevocable trust created before October 1, 2013, or to a revocable trust that becomes irrevocable before October 1, 2013.