ORS 130.725
UTC 816. Specific powers of trustee


Without limiting the authority conferred by ORS 130.720 (UTC 815. General powers of trustee), 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 (Authority of fiduciary to deposit securities in clearing corporation). [2005 c.348 §75; 2007 c.515 §3; 2013 c.529 §20]

Source: Section 130.725 — UTC 816. Specific powers of trustee, https://www.­oregonlegislature.­gov/bills_laws/ors/ors130.­html.

Notes of Decisions

Under former similar statute (ORS 128.009)

Where this section authorizes trustee to defend actions against himself, it does not require trust to pay trustee for amounts he might otherwise have earned during time spent in his own defense but trustee is entitled to be reimbursed for attorney fees incurred in defending his accounting. Masters v. Bissett, 101 Or App 163, 790 P2d 16 (1990), Sup Ct review denied, as modified by 102 Or App 289, 794 P2d 445 (1990), Sup Ct review denied

Law Review Citations

In general

42 WLR 187 (2006)

130.001
UTC 101. Short title
130.005
UTC 102. Scope
130.010
UTC 103. Definitions
130.015
UTC 104. Knowledge
130.020
UTC 105. Default and mandatory rules
130.022
UTC 108. Principal place of administration
130.025
UTC 106. Common law of trusts
130.030
UTC 107. Governing law
130.035
UTC 109. Methods of giving notice
130.040
UTC 110. Other persons treated as qualified beneficiaries
130.045
UTC 111. Nonjudicial settlement agreements
130.050
UTC 201. Role of court in administration of trust
130.055
UTC 202. Jurisdiction over trustee and beneficiary
130.060
UTC 203. Subject-matter jurisdiction
130.065
UTC 204. Venue
130.100
UTC 301. Representation
130.105
UTC 302. Representation by holder of testamentary power of appointment
130.110
UTC 303. Representation by fiduciaries and parents
130.115
UTC 304. Representation by person having substantially identical interest
130.120
UTC 305. Appointment of special representative
130.150
UTC 401. Methods of creating trust
130.155
UTC 402. Requirements for creation
130.160
UTC 403. Trusts created in other states, countries or jurisdictions
130.165
UTC 404. Trust purposes
130.170
UTC 405. Charitable trusts
130.175
UTC 406. Creation of trust induced by fraud, duress or undue influence
130.180
UTC 407. Evidence of oral trust
130.185
UTC 408. Pet trust
130.190
UTC 409. Noncharitable trust without ascertainable beneficiary
130.193
Stewardship trust
130.195
UTC 410. Modification or termination of trust
130.200
UTC 411. Modification or termination of irrevocable trust by consent
130.205
UTC 412. Modifications or termination because of unanticipated circumstances or inability to administer trust effectively
130.210
UTC 413. Cy pres
130.215
UTC 414. Modification or termination of uneconomic trust
130.220
UTC 415. Reformation to correct mistakes
130.225
UTC 416. Modification to achieve settlor’s tax objectives
130.230
UTC 417
130.232
Division of trust into separate shares or portions
130.235
In terrorem clause
130.237
Abatement due to insufficiency of trust property
130.240
Marital deduction gifts
130.300
UTC 501. Rights of beneficiary’s creditor or assignee
130.305
UTC 502. Spendthrift provision
130.310
UTC 503. Exceptions to spendthrift provisions
130.315
UTC 505. Creditor’s claim against settlor
130.320
UTC 506. Overdue distribution
130.325
UTC 507. Personal obligations of trustee
130.350
Statute of limitations
130.355
Commencement of proceeding
130.360
Limitation on presentation of claims when notice to claimants given
130.365
Publication of notice
130.370
Notice to individual claimants
130.375
Form of claim
130.380
Claim based on debt due or judgment
130.385
Claim on debts not yet due
130.390
Claim on secured debt that is due
130.395
Claim on contingent or unliquidated debt
130.400
Allowance and disallowance of claims
130.405
Creditor may obtain order for payment
130.410
Evidence required to allow court approval of claim disallowed by trustee
130.415
Waiver of statute of limitations
130.420
Tolling of statute of limitations on claim
130.425
Priority of claims
130.430
Applicability of time limitations to public bodies
130.435
Applicability of time limitations to certain claims based on liens against property and liability of settlor or trustee
130.440
Petition to close case
130.445
Dismissal for want of prosecution
130.450
Consolidation of proceedings
130.500
UTC 601. Revocable trusts generally
130.505
UTC 602. Revocation or amendment of revocable trust
130.510
UTC 603. Settlor’s powers
130.515
UTC 604. Limitation on action contesting validity of revocable trust
130.518
Creditor protections retained upon conveyance of property held as tenants by the entirety to revocable trust
130.520
“Specific distribution” defined for ORS 130.520 to 130.575
130.525
Applicability of ORS 130.530, 130.535 and 130.540 to 130.575
130.530
Effect of marriage
130.535
Revocation by divorce or annulment
130.540
Contract of sale of property not revocation
130.545
Encumbrance or disposition of property after trust instrument executed
130.550
When trust assets pass to descendants of beneficiary
130.555
Children of settlors
130.560
Failure of specific distribution
130.565
Effect of failure of specific distribution
130.570
Advancement against share of trust
130.575
Effect of advancement on distribution
130.600
UTC 701. Acceptance or rejection of trusteeship
130.605
UTC 702. Trustee’s bond
130.610
UTC 703. Cotrustees
130.615
UTC 704. Vacancy in trusteeship
130.620
UTC 705. Resignation of trustee
130.625
UTC 706. Removal of trustee
130.630
UTC 707. Delivery of property by former trustee
130.635
UTC 708. Compensation of trustee
130.640
UTC 709. Reimbursement of expenses
130.650
UTC 801. Duty to administer trust
130.655
UTC 802. Duty of loyalty
130.660
UTC 803. Impartiality
130.665
UTC 804. Prudent administration
130.670
UTC 805. Costs of administration
130.675
UTC 806. Trustee’s skills
130.680
UTC 807. Delegation by trustee
130.685
UTC 808. Powers to direct
130.690
UTC 809. Control and protection of trust property
130.695
UTC 810. Recordkeeping and identification of trust property
130.700
UTC 811. Enforcement and defense of claims
130.705
UTC 812. Collecting trust property
130.710
UTC 813. Duty to inform and report
130.715
UTC 814. Discretionary powers
130.720
UTC 815. General powers of trustee
130.725
UTC 816. Specific powers of trustee
130.730
UTC 817. When interest of beneficiary vests
130.733
Notice of proposed trustee action to beneficiaries
130.735
Appointment of adviser
130.750
Trustee’s duty to comply with prudent investor rule
130.755
Prudent investor rule
130.760
Diversification of trust investments
130.765
Trustee duty
130.770
Determination of compliance with prudent investor rule
130.775
Trust language authorizing investments permitted under prudent investor rule
130.800
UTC 1001. Remedies for breach of trust
130.805
UTC 1002. Damages for breach of trust
130.810
UTC 1003. Damages in absence of breach
130.815
UTC 1004. Attorney fees and costs
130.820
UTC 1005. Limitation of action against trustee
130.825
UTC 1006. Reliance on trust instrument
130.830
UTC 1007. Event affecting administration or distribution
130.835
UTC 1008. Exculpation of trustee
130.840
UTC 1009. Beneficiary’s consent, release or ratification
130.845
UTC 1010. Limitation on personal liability of trustee
130.850
UTC 1011. Interest as general partner
130.855
UTC 1012. Protection of person dealing with trustee
130.860
UTC 1013. Certification of trust
130.900
Uniformity of application and construction
130.905
UTC 1102. Electronic records and signatures
130.910
UTC 1106. Application
Green check means up to date. Up to date