130.225, or a trust combination or division under ORS 130.230, solely because of the existence of the duty of loyalty under subsection (1) of this section or the duty to administer the trust under ORS

130.225, or a trust combination or division under ORS 130.230, solely because of the existence of the duty of loyalty under subsection (1) of this section or the duty to administer the trust under ORS 130.650 (1).

����� (10) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee. [2005 c.348 �60; 2007 c.515 �2; 2013 c.529 �18; 2017 c.81 �3]

����� Note: Section 4, chapter 81, Oregon Laws 2017, provides:

����� Sec. 4. The amendments to ORS 130.655 by section 3 of this 2017 Act apply only to transactions occurring on or after the effective date of this 2017 Act [January 1, 2018]. [2017 c.81 �4]

����� 130.660 UTC 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. [2005 c.348 �61]

����� 130.665 UTC 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. [2005 c.348 �62]

����� 130.670 UTC 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. [2005 c.348 �63]

����� 130.675 UTC 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 in administering the trust. [2005 c.348 �64]

����� 130.680 UTC 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) of this section is not liable to the beneficiaries or to the trust for an action of the agent.

����� (4) By accepting a delegation of powers or duties from the trustee of a trust that is subject to this state�s law, an agent submits to the jurisdiction of the courts of this state. [2005 c.348 �65]

����� 130.685 UTC 808. Powers to direct. (1) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.

����� (2) If the terms of a trust confer upon a person other than the settlor of a revocable trust power to direct certain actions of the trustee, the trustee shall act in accordance with an exercise of the power unless the exercise is manifestly contrary to the terms of the trust or the trustee knows the attempted exercise would constitute a serious breach of a fiduciary duty that the person holding the power owes to the beneficiaries of the trust.

����� (3) The terms of a trust may confer upon a trustee or other person a power to direct the modification or termination of the trust.

����� (4) A person other than a beneficiary who holds a power to direct is rebuttably presumed to be a fiduciary and is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from breach of a fiduciary duty. [2005 c.348 �66]

����� 130.690 UTC 809. Control and protection of trust property. A trustee shall take reasonable steps to take control of and protect the trust property. [2005 c.348 �67]

����� 130.695 UTC 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) of this section, a trustee shall cause the trust property to be designated 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 of the different trusts, a trustee may invest as a whole the property of two or more separate trusts. [2005 c.348 �68]

����� 130.700 UTC 811. Enforcement and defense of claims. A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust. [2005 c.348 �69]

����� 130.705 UTC 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 remedy a breach of trust known to the trustee to have been committed by a former trustee. [2005 c.348 �70]

����� 130.710 UTC 813. Duty to inform and report. (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 those beneficiaries to protect their interests. If reasonable under the circumstances, a trustee may respond to a request for information related to the administration of the trust from a beneficiary who is not a qualified beneficiary.

����� (2)(a) Upon request of a qualified beneficiary, a trustee shall promptly furnish to the qualified beneficiary a copy of the trust instrument.

����� (b) Within a reasonable time after accepting a trusteeship, a trustee shall notify all qualified beneficiaries of the acceptance and of the trustee�s name, address and telephone number.

����� (c) Except as provided in subsection (10) of this section, within a reasonable time 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, the trustee 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 the trust instrument and of the right to a trustee�s report as provided in subsection (3) of this section.

����� (d) A trustee shall notify the qualified beneficiaries in advance of any change in the method or rate of the trustee�s compensation.

����� (3)(a) Except as provided in subsection (10) of this section, a trustee shall send a trustee report, at least annually and upon termination of the trust, to the permissible distributees of trust income or principal and to other qualified beneficiaries who request the report. The report must include a listing of trust property and liabilities, and must show the market values of trust assets, if feasible. The report must reflect all receipts and disbursements of the trust, including the source and amount of the trustee�s compensation.

����� (b) Upon a vacancy in a trusteeship, unless a cotrustee remains in office, and if required by the successor trustee or the court, the former trustee shall send a trustee report for the period from the prior report, if any, through the time of vacancy to the qualified beneficiaries of the trust.

����� (c) A personal representative, conservator or guardian may send the qualified beneficiaries a trustee report on behalf of a deceased or financially incapable trustee.

����� (4) A qualified beneficiary may waive the right to a trustee report or other information otherwise required to be furnished under this section. A qualified beneficiary may withdraw a waiver at any time for the purpose of future reports and other information.

����� (5) A trustee may charge a reasonable fee to a beneficiary for providing information under this section.

����� (6) A beneficiary�s request for any information under this section must be with respect to a single trust that is sufficiently identified to enable the trustee to locate the trust�s records.

����� (7) If the trustee is bound by any confidentiality restrictions regarding a trust asset, any beneficiary eligible under this section to receive information about that asset must agree to be bound by the same confidentiality restrictions before receiving the information.

����� (8) Despite any other provision of this section, information, notice and reports required by this section shall be given only to the settlor�s spouse if:

����� (a) The spouse survives the settlor;

����� (b) The spouse is financially capable;

����� (c) The spouse is the only permissible distributee of the trust; and

����� (d) All of the other qualified beneficiaries of the trust are descendants of the spouse.

����� (9) Notwithstanding any other provision of this section, while the settlor of a revocable trust is alive, beneficiaries other than the settlor have no right to receive notice, information or reports under this section.

����� (10) A trustee need not provide a qualified beneficiary with the notice of the right to a trustee�s report under subsection (2)(c) of this section, and need not send trustee reports to the beneficiary under subsection (3) of this section, until six months after a revocable trust becomes irrevocable if the beneficiary�s only interest in the trust is a distribution of a specific item of property or distribution of a specific amount of money. The trustee must provide the notice of the right to a trustee�s report required by subsection (2)(c) of this section at the end of the six-month period if the beneficiary has not received distribution of the specific item of property or specific amount of money before the end of the period. If notice is provided to a qualified beneficiary under this subsection, the trustee must thereafter send trustee reports to the beneficiary until distribution of the specific item of property or specific amount of money. [2005 c.348 �71; 2009 c.275 �18; 2013 c.529 �19]

����� Note: Section 72, chapter 348, Oregon Laws 2005, provides:

����� Sec. 72. (1) Section 71 (2)(b) of this 2005 Act [130.710 (2)(b)] applies only to a trustee who accepts a trusteeship on or after the effective date of this 2005 Act [January 1, 2006].

����� (2) Section 71 (2)(c) of this 2005 Act [130.710 (2)(c)] applies only to irrevocable trusts created on or after the effective date of this 2005 Act and to revocable trusts that become irrevocable on or after the effective date of this 2005 Act. [2005 c.348 �72]

����� Note: Section 19, chapter 275, Oregon Laws 2009, provides:

����� Sec. 19. The amendments to ORS 130.710 by section 18 of this 2009 Act apply only to revocable trusts that become irrevocable on or after the effective date of this 2009 Act [January 1, 2010]. [2009 c.275 �19]

����� 130.715 UTC 814. Discretionary powers; tax savings; inclusion of capital gains in income. (1) A trustee shall exercise a discretionary power in good faith and in a manner that is in accordance with the terms and purposes of the trust and the interests of the beneficiaries. The duty imposed by this subsection is not affected by the grant of discretion in the terms of the trust, even though the terms of the trust provide that the trustee has absolute, sole or uncontrolled discretion or use other words purporting to convey broad discretion.

����� (2) Subject to subsection (4) of this section, and unless the terms of the trust expressly provide otherwise:

����� (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 the exercise of which is limited or prohibited by subsection (2) of this section 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) of this section 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 described in section 2056(b)(5) or 2523(e) of the Internal Revenue Code, as in effect on January 1, 2006, 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, as in effect on January 1, 2006.

����� (5) Unless otherwise provided by the trust, a trustee may include capital gains from the sale or exchange of capital assets in distributable net income to the extent that the gains are, in a reasonable and impartial exercise of discretion by the trustee:

����� (a) Allocated to income pursuant to the trustee�s power to adjust between principal and income under ORS 129.215;

����� (b) Allocated to principal and treated consistently by the trustee on the trust�s books, records and tax returns as part of a distribution to a beneficiary; or

����� (c) Allocated to principal but actually distributed to a beneficiary or utilized by the trustee in determining the amount that is distributed or required to be distributed to a beneficiary. [2005 c.348 �73; 2015 c.126 �3]

����� Note: See note under 130.230.

����� 130.720 UTC 815. General powers of trustee. (1) A trustee, without authorization by the court, may exercise powers conferred by the terms of the trust and, except as limited by the terms of the trust:

����� (a) All powers over the trust property that an unmarried financially capable owner has over individually owned property;

����� (b) Any other powers appropriate to achieve the proper investment, management and distribution of the trust property; and

����� (c) Any other powers conferred by this chapter.

����� (2) The exercise of a power is subject to the fiduciary duties prescribed by ORS 130.650 to