Title 130 · ORS Chapter 130

128.397] OFFICE OF TRUSTEE �� 130.600 UTC 701. Acceptance or rejection of trusteeship. (1) Except as otherwise provided in subsection (3) or (4) of this section, a person designated as trus

Citation: ORS 128.397

Section: 128.397

128.397]

OFFICE OF TRUSTEE

�� 130.600 UTC 701. Acceptance or rejection of trusteeship. (1) Except as otherwise provided in subsection (3) or (4) of this section, 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 of acceptance, or the method provided in the terms of the trust is not expressly made exclusive, by knowingly accepting delivery of the trust property, knowingly 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 deemed to have rejected the trusteeship.

�� (3) A person designated as trustee may act to preserve the trust property without accepting the trusteeship. The person must send a rejection of the trusteeship to the settlor within a reasonable time after taking the action. If the settlor is dead or is financially incapable, the person must send the rejection to a qualified beneficiary within a reasonable time after taking the action.

�� (4) A person designated as trustee may inspect or investigate trust property to determine potential liability under environmental or other law, or for any other purpose, without accepting the trusteeship. [2005 c.348 �50]

�� 130.605 UTC 702. Trustee�s bond. (1) A trustee shall acquire a bond to secure performance of the trustee�s duties only if a bond is required by the terms of the trust or if a court finds that a bond is needed to protect the interests of the beneficiaries. A court may waive a bond required by the terms of a trust if the court finds that a bond is not needed to protect the interests of the beneficiaries.

�� (2) The court may specify the amount and terms of a bond. The court may modify or terminate any requirement for a bond at any time.

�� (3) A trust company as defined in ORS 706.008 need not give a bond, even if required by the terms of the trust. [2005 c.348 �51]

�� 130.610 UTC 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 cotrustee or cotrustees may act for the trust.

�� (3) A cotrustee must participate in the performance of a trustee�s function unless:

�� (a) The cotrustee is unavailable to perform the function because of absence, illness or disqualification under other law;

�� (b) The cotrustee is unavailable to perform the function because the cotrustee is temporarily financially incapable; or

�� (c) The cotrustee has delegated the performance of the function to another trustee pursuant to subsection (5) of this section.

�� (4) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law or temporary financial incapability, 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) Except as prohibited in the terms of the trust, a cotrustee may delegate the performance of a function to another cotrustee, and the other cotrustee may accept the delegation of the performance of the function. The delegation and the acceptance must be in writing. A delegation shall remain in effect until it terminates by its terms, is revoked in writing by the cotrustee making the delegation or is terminated in writing by the cotrustee accepting the delegation.

�� (6) Except as otherwise provided in subsection (7) of this section, a cotrustee who does not join in an action of another cotrustee is not liable for the action.

�� (7) Each cotrustee 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 cotrustee who joins in an action at the direction of the majority of the cotrustees and who notified 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. [2005 c.348 �52; 2013 c.529 �12]

�� 130.615 UTC 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, cannot be located or does not exist;

�� (c) A trustee resigns;

�� (d) A trustee is disqualified or removed;

�� (e) A trustee dies; or

�� (f) A guardian or conservator is appointed for an individual serving as trustee.

�� (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 noncharitable 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) A vacancy in a trusteeship of a charitable 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 all qualified beneficiaries and the Attorney General; or

�� (c) By a person appointed by the court.

�� (5) 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. [2005 c.348 �53; 2013 c.529 �13]

�� 130.620 UTC 705. Resignation of trustee. (1) A trustee may resign:

�� (a) After at least 30 days� notice to the qualified beneficiaries, the settlor, if living, and all cotrustees; or

�� (b) At any time with the approval of a court.

�� (2) If a court approves 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. [2005 c.348 �54]

�� 130.625 UTC 706. Removal of trustee. (1) The settlor, a cotrustee or a beneficiary may request that a court remove a trustee, or a trustee may be removed by a court on its own motion.

�� (2) A court may remove a trustee if the court finds:

�� (a) The trustee has committed a serious breach of trust;

�� (b) Lack of cooperation among cotrustees substantially impairs the administration of the trust;

�� (c) Removal of the trustee best serves the interests of the beneficiaries because the trustee is unfit or unwilling, or has persistently failed to administer the trust effectively; or

�� (d) Removal of the trustee best serves the interests of all of the beneficiaries and:

�� (A) There has been a substantial change of circumstances or removal has been requested by all of the qualified beneficiaries;

�� (B) A suitable cotrustee or successor trustee is available; and

�� (C) The trustee fails to establish by clear and convincing evidence that removal is inconsistent with a material purpose of the trust.

�� (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 such appropriate relief under ORS