Effective: September 14, 2016
Latest Legislation: House Bill 229 - 131st General Assembly
(A)¿¿Notwithstanding any other provision of law to the contrary, while acting as the fiduciary of a trust, a family trust company may do all of the following:
(1)¿Invest in a security of an investment company or investment trust for which the family trust company or a family affiliate provides services in a capacity other than as a fiduciary;
(2)¿Place a security transaction using a broker that is a family affiliate;
(3)¿Invest in an investment contract that is purchased from an insurance company or carrier owned by or affiliated with the family trust company or a family affiliate;
(4)¿Enter into an agreement with a beneficiary or grantor of a trust relative to the appointment or compensation of the fiduciary or a family affiliate;
(5)¿Transact with another trust, estate, guardianship, or conservatorship for which the family trust company is a fiduciary or in which a beneficiary has an interest;
(6)¿Make an equity investment in a nonpublicly traded entity that may or may not be marketable and that is owned or controlled, either directly or indirectly, by one or more beneficiaries, family members, or family affiliates;
(7)¿Deposit trust money in a financial institution that is owned or operated by a family affiliate;
(8)¿Delegate the authority to conduct any transaction or action under this section to an agent of the family trust company or a family affiliate;
(9)¿Purchase, sell, hold, own, or invest in any security, bond, real or personal property, stock, or other asset of a family affiliate;
(10)¿Loan money to or borrow money from a family member or the family member's legal representative, another trust managed by the family trust company, or a family affiliate;
(11) Act as proxy in voting any shares of stock that are assets of the trust;
(12) Exercise any powers of control with respect to any interest in a business entity that is an asset of the trust, including, without limitation, the appointment of officers or directors who are family members;
(13) Receive reasonable compensation for its services.
(B) After full disclosure to the governing body of the family trust company is provided, nothing in this section prohibits a family trust company from entering into a transaction with or investing in any asset of any of the following:
(1) A trust, estate, guardianship, or conservatorship for which the family trust company is a fiduciary;
(2) A family affiliate;
(3) Any other business entity, agent, or person for which a conflict of interest may exist.
Last updated July 22, 2021 at 9:39 AM