Trustee vacancies; priority for filling vacancy
Sec. 33. (a) In addition to the terms of a trust regarding the
circumstances under which a trustee vacancy occurs, a trustee
vacancy occurs if:
(1) a person designated as trustee does not accept being trustee;
(2) a person designated as trustee cannot be identified or does
not exist;
(3) a trustee resigns;
(4) a trustee is disqualified or removed;
(5) a trustee dies; or
(6) the person designated as trustee lacks capacity.
(b) Except as provided in the terms of a trust, if a trust has at least
two (2) cotrustees and at least one (1) cotrustee remains in office, a
cotrustee vacancy is not required to be filled. A cotrustee vacancy
must be filled if the trust has no remaining cotrustee.
(c) Except as provided in the terms of a trust, a trustee vacancy of
a noncharitable trust that is required to be filled must be filled
according to the following priority:
(1) A person designated in the terms of the trust to act as
successor trustee.
(2) A person appointed by a majority of the qualified
beneficiaries.
(3) A person appointed by the court.
(d) Except as provided in the terms of a trust, a trustee vacancy of
a charitable trust that is required to be filled must be filled according
to the following priority:
(1) A person designated in the terms of the trust to be successor
trustee.
(2) A person:
(A) selected by the charitable organizations expressly
designated to receive distributions under the terms of the
trust; and
(B) whose selection is approved by the attorney general.
(3) A person appointed by the court.
(e) Regardless of whether a trustee vacancy exists or is required
to be filled, the court may appoint an additional trustee or a special
fiduciary if the court considers the appointment necessary for the
administration of the trust.
As added by P.L.238-2005, SEC.39.
Last modified: May 27, 2006