Title 130 · ORS Chapter 130

130.730. [2005 c.348 �74] �� 130.725 UTC 816. Specific powers of trustee. Without limiting the authority conferred by ORS 130.720, a trustee may do any of the following: �� (1) Collect trus

Citation: ORS 130.730

Section: 130.730

130.730. [2005 c.348 �74]

�� 130.725 UTC 816. Specific powers of trustee. Without limiting the authority conferred by ORS 130.720, a trustee may do any of the following:

�� (1) Collect trust property and accept or reject additions to the trust property from a settlor or any other person.

�� (2) Acquire or sell property, for cash or on credit, at public or private sale.

�� (3) Exchange, partition or otherwise change the character of trust property.

�� (4) Deposit trust money in an account in a financial institution, including a financial institution operated by the trustee, if the deposit is adequately insured or secured.

�� (5) Borrow money, with or without security, to be repaid from trust assets or otherwise, and advance money for the protection of the trust and for all expenses, losses and liabilities sustained in the administration of the trust or because of the holding or ownership of any trust assets. Money may be borrowed under this subsection from any lender, including a financial institution operated by or affiliated with the trustee. A trustee is entitled to be reimbursed out of the trust property or from property that has been distributed from the trust, with reasonable interest, for an advance of money under this subsection.

�� (6) Continue operation of any proprietorship, partnership, limited liability company, business trust, corporation or other form of business or enterprise in which the trust has an interest, and take any action that may be taken by shareholders, members or property owners, including merging, dissolving or otherwise changing the form of business organization or contributing additional capital.

�� (7) Exercise the rights of an absolute owner of stocks and other securities, including the right to:

�� (a) Vote, or give proxies to vote, with or without power of substitution, or enter into or continue a voting trust agreement;

�� (b) Hold a security in the name of a nominee or in other form without disclosure of the trust so that title may pass by delivery;

�� (c) Pay calls, assessments and other sums chargeable or accruing against the securities, and sell or exercise stock subscription or conversion rights; and

�� (d) Deposit the securities with a depository or other financial institution.

�� (8) Construct, repair, alter or otherwise improve buildings or other structures on real property in which the trust has an interest, demolish improvements, raze existing or erect new party walls or buildings on real property in which the trust has an interest, subdivide or develop land, dedicate land to public use or grant public or private easements, and make or vacate plats and adjust boundaries.

�� (9) Enter into a lease for any purpose as lessor or lessee, including a lease or other arrangement for exploration and removal of natural resources, with or without the option to purchase or renew, even though the period of the lease extends beyond the duration of the trust.

�� (10) Grant an option involving a sale, lease or other disposition of trust property or acquire an option for the acquisition of property, even though the option is exercisable after the trust is terminated, and exercise an option so acquired.

�� (11) Insure the property of the trust against damage or loss and insure the trustee, the trustee�s agents, and beneficiaries against liability arising from the administration of the trust.

�� (12) Abandon or decline to administer property of no value or property of a value that is not adequate to justify its collection or continued administration.

�� (13) Avoid possible liability for violation of environmental law by:

�� (a) Inspecting or investigating property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property;

�� (b) Taking action to prevent, abate or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of governmental enforcement;

�� (c) Declining to accept property into trust or disclaiming any power with respect to property that is or may be burdened with liability for violation of environmental law;

�� (d) Compromising claims against the trust that may be asserted for an alleged violation of environmental law; and

�� (e) Paying the expense of any inspection, review, abatement or remedial action to comply with environmental law.

�� (14) Pay or contest any claim, settle a claim by or against the trust, and release, in whole or in part, a claim belonging to the trust.

�� (15) Pay taxes, assessments, compensation of the trustee and of employees and agents of the trust, and other expenses incurred in the administration of the trust.

�� (16) Exercise elections available under federal, state and local tax laws.

�� (17) Select a mode of payment under any employee benefit or retirement plan, annuity or life insurance payable to the trustee, exercise rights under employee benefit or retirement plans, annuities or policies of life insurance, including exercise of the right to indemnification for expenses and against liabilities, and take appropriate action to collect the proceeds.

�� (18) Make loans out of trust property. The trustee may make a loan to a beneficiary on terms and conditions the trustee considers to be fair and reasonable under the circumstances. The trustee may collect loans made to a beneficiary by making deductions from future distributions to the beneficiary.

�� (19) Pledge trust property to guarantee loans made by others to the beneficiary.

�� (20) Appoint a trustee to act in another state, country or other jurisdiction with respect to trust property located in the other state, country or other jurisdiction, confer upon the appointed trustee all of the powers and duties of the appointing trustee, require that the appointed trustee furnish security and remove any trustee so appointed.

�� (21) Make a distribution to a beneficiary who is under a legal disability or who the trustee reasonably believes is financially incapable, either:

�� (a) Directly;

�� (b) By application of the distribution for the beneficiary�s benefit;

�� (c) By paying the distribution to the beneficiary�s conservator or, if the beneficiary does not have a conservator, the beneficiary�s guardian;

�� (d) By creating a custodianship under the Uniform Transfers to Minors Act by paying the distribution to a custodian for the beneficiary;

�� (e) By paying the distribution to any existing custodian under the Uniform Transfers to Minors Act;

�� (f) By paying the distribution to an adult relative or other person having legal or physical care or custody of the beneficiary, to be expended on the beneficiary�s behalf, if the trustee does not know of a conservator, guardian or custodian for the beneficiary; or

�� (g) By managing the distribution as a separate fund held by the trustee on behalf of the beneficiary, subject to the beneficiary�s continuing right to withdraw the distribution.

�� (22) On distribution or payment of trust property or the division or termination of a trust, make distributions and payments in cash or in kind, or in divided or undivided interests, allocate particular assets in proportionate or disproportionate shares, value the trust property for those purposes and adjust for resulting differences in valuation.

�� (23) Resolve a dispute concerning the interpretation of the trust or the administration of the trust by mediation, arbitration or other procedure for alternative dispute resolution.

�� (24) Prosecute or defend an action, claim or judicial proceeding in any state, country or other jurisdiction to protect trust property and the trustee in the performance of the trustee�s duties.

�� (25) Sign and deliver contracts and other instruments that are useful to achieve or facilitate the exercise of the trustee�s powers.

�� (26) On termination of the trust, exercise the powers appropriate to wind up the administration of the trust and distribute the trust property to the persons entitled to the property.

�� (27) Allocate items of income or expense to either trust income or principal, as provided by law, including creation of reserves out of income for depreciation, obsolescence or amortization, or for depletion in mineral or timber properties.

�� (28) Employ persons, including attorneys, auditors, investment advisors or agents, to advise or assist the trustee in the performance of administrative duties. A trustee may act based on the recommendations of professionals without independently investigating the recommendations.

�� (29) Apply for and qualify all or part of the property in the trust estate for special governmental tax programs or other programs that may benefit the trust estate or any of the beneficiaries.

�� (30) Deposit securities in a clearing corporation as provided in ORS 128.100. [2005 c.348 �75; 2007 c.515 �3; 2013 c.529 �20]

�� 130.730 UTC 817. When interest of beneficiary vests; distribution upon termination. (1) The interests of a beneficiary under a testamentary trust vest upon the death of the testator, and the interests of a beneficiary under a revocable or irrevocable trust vest when the trust becomes irrevocable, and not later, unless the will or trust clearly indicates a contrary intent.

�� (2) Unless a will or trust clearly indicates a contrary intent, upon the occurrence of an event, satisfaction of a condition or exercise of a power that terminates or partially terminates a trust or creates an obligation for the trustee to pay or distribute all or any portion of a trust to a beneficiary, the beneficiary�s interest in the terminated trust, portion or distribution indefeasibly vests in the beneficiary as of the event, satisfaction or exercise, subject to ORS 114.600 to 114.725, rights of creditors and the administration and sale of trust property by the trustee. Upon the termination or partial termination of a trust or upon creation of the obligation for the trustee to pay or distribute all or any portion of a trust to a beneficiary under this subsection, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to the property. The trustee may retain a reasonable reserve for the payment of debts, fees, expenses and taxes.

�� (3) Incidental to a termination or partial termination of a trust, the trustee may request that a beneficiary execute a release of the trustee from liability for breach of trust. A release under this subsection is invalid to the extent:

�� (a) The release was induced by improper conduct of the trustee; or

�� (b) The trustee failed to adequately disclose to the beneficiary, at the time of the release, the material facts relating to the breach or sufficient information to enable the beneficiary to know of a potential claim or to inquire into the existence of a breach or potential claim. [2005 c.348 �76; 2013 c.529 �21; 2015 c.126 �4]

�� Note: See note under 130.230.

�� 130.733 Notice of proposed trustee action to beneficiaries; right of beneficiary to object. (1) Prior to a proposed action to be taken by a trustee regarding the administration of a trust, the trustee may send the beneficiaries a written notice of the proposed action informing the beneficiaries of the proposed action.

�� (2) The right of a beneficiary receiving a notice of proposed action under subsection (1) of this section to object to a proposed action described in the notice is barred if the beneficiary does not notify the trustee in writing of an objection within 45 days after the notice was sent, or within such longer time as may be stated in the notice, but only to the extent that the notice of proposed action:

�� (a) Clearly informs the beneficiary of the right to object, the manner in which to object and the date by which the objection must be received by the trustee;

�� (b) States that the beneficiary�s right to object may be barred if the beneficiary does not object within the time and in the manner allowed for objection; and

�� (c) Adequately provides sufficient information regarding the proposed action to enable the beneficiary to make an informed decision.

�� (3) If a beneficiary receiving notice does not object as provided in this section, the beneficiary will be deemed to have consented to the proposed action and the beneficiary may not thereafter file an action or other civil proceeding based in tort, contract or otherwise if the proposed action is taken by the trustee within a reasonable time after the notice was given under this section. This subsection does not apply to the following:

�� (a) Allowance of the trustee�s compensation;

�� (b) Settlement of trust accounts or the trustee�s report;

�� (c) Sale of trust property to the trustee or sale of the trustee�s property to the trust;

�� (d) Exchange of trust property for property of the trustee;

�� (e) Grant of an option to the trustee to purchase trust property;

�� (f) Allowance, payment or settlement of a trustee�s claim against the trust;

�� (g) Compromise or settlement of a claim, action or proceeding by the trust against the trustee; or

�� (h) Extension, renewal or modification of the terms of a debt or other obligation of the trustee owing to or in favor of the trust.

�� (4) The receipt of an objection by the trustee does not prohibit the trustee from taking the proposed action or sending subsequent notices of proposed actions to the beneficiaries regarding the same or similar proposed actions. [2013 c.529 �25]

ADVISERS

�� 130.735 Appointment of adviser; liability of trustee. (1) A trust instrument may appoint a person to act as an adviser for the purpose of directing or approving decisions made by the trustee, including decisions related to distribution of trust assets and to the purchase, sale or exchange of trust investments. The appointment must be made by a provision of the trust that specifically refers to this section. The appointment may provide for succession of advisers and for a process for the removal of advisers. An adviser shall exercise all authority granted under the trust instrument as a fiduciary unless the trust instrument provides otherwise. A person who agrees to act as an adviser is subject to Oregon law and submits to the jurisdiction of the courts of this state.

�� (2) If a trust instrument provides that a trustee is to follow the direction of an adviser, and that trustee acts in accordance with the adviser�s directions, the trustee is not liable for any loss resulting directly or indirectly from the trustee�s decision unless the decision constitutes reckless indifference to the purposes of the trust or the interests of the beneficiaries.

�� (3) If a trust instrument provides that a trustee is to make decisions with the approval of an adviser, and the adviser does not provide approval within a reasonable time after the trustee has made a request for approval of a decision, the trustee is not liable for any loss resulting directly or indirectly from the decision unless the decision constitutes reckless indifference to the purposes of the trust or the interests of the beneficiaries.

�� (4) Except to the extent specifically provided by the trust instrument, a trustee has no duty to monitor an adviser�s conduct, provide advice to the adviser, consult with the adviser or give notice to any beneficiary or third party about decisions made pursuant to the adviser�s direction that the trustee would have decided differently.

�� (5) Absent clear and convincing evidence to the contrary, all actions taken by a trustee for the purpose of implementing directions from an adviser, including confirming that the adviser�s directions have been carried out and recording and reporting activities requested by the adviser, are presumed to be administrative actions taken by the trustee solely for the purpose of allowing the trustee to perform the duties assigned to the trustee under the trust instrument. Administrative actions taken by a trustee for the purpose of implementing directions from an adviser do not constitute monitoring of the adviser or other participation in decisions that are within the scope of the adviser�s authority.

�� (6) A court may remove an adviser if the court finds:

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

�� (b) Removal of the adviser best serves the interests of the beneficiaries because the adviser is unfit or unwilling, or has persistently failed to timely and effectively advise the trustee in matters assigned to the adviser in the trust instrument under subsection (1) of this section. [2009 c.275 �21; 2013 c.529 �22]

UNIFORM PRUDENT INVESTOR ACT

�� 130.750 Trustee�s duty to comply with prudent investor rule. (1) Except as otherwise provided in subsection (2) of this section, 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 ORS 130.755.

�� (2) The prudent investor rule is a default rule that 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 provisions of the trust. [2005 c.348 �77]

�� 130.755 Prudent investor rule. (1) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution.

�� (2) A trustee�s investment and management decisions respecting individual assets are not evaluated in isolation, but in the context of the trust portfolio as a whole and as a part of the overall investment strategy having risk and return objectives reasonably suited to the trust.

�� (3) A trustee shall consider all relevant circumstances in investing and managing trust assets, including any of the following that are relevant to the trust or the beneficiaries of the trust:

�� (a) General economic conditions;

�� (b) The possible effect of inflation or deflation;

�� (c) The expected tax consequences of investment decisions or strategies;

�� (d) The role that each investment or course of action plays within an overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property, and real property;

�� (e) The expected total return from income and the appreciation of capital;

�� (f) Other resources of the beneficiaries;

�� (g) Needs for liquidity, regularity of income and preservation or appreciation of capital;

�� (h) An asset�s special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries;

�� (i) The intent, desire and personal values of the settlor, including the settlor�s desire to engage in sustainable or socially responsible investment strategies that align with the settlor�s social, environmental, governance or other values or beliefs to the extent known by the trustee; and

�� (j) The needs of the beneficiaries, including but not limited to the beneficiaries� personal values and desire that the trustee engage in sustainable or socially responsible investing strategies that align with the beneficiaries� social, environmental, governance or other values or beliefs, as well as the financial needs of the beneficiaries.

�� (4) A trustee shall make a reasonable effort to verify facts relevant to the investment and management of trust assets.

�� (5) A trustee may invest in any kind of property or type of investment consistent with the standards of ORS 130.750 to 130.775.

�� (6) 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, has a duty to use those special skills or expertise in investing and managing trust assets. [2005 c.348 �78; 2019 c.546 �2]

�� 130.760 Diversification of trust investments. A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying. [2005 c.348 �79]

�� 130.765 Trustee duty. Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets in order to bring the trust portfolio into compliance with the requirements of ORS 130.750 to