LD 921
pg. 30
Page 29 of 58 PUBLIC Law Chapter 618 Page 31 of 58
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LR 466
Item 1

 
3.__Transaction presumed affected by conflict.__A sale,
encumbrance or other transaction involving the investment or
management of trust property is presumed to be affected by a
conflict between personal and fiduciary interests if it is entered
into by the trustee with:

 
A.__The trustee's spouse;

 
B.__The trustee's descendants, siblings or parents, or their
spouses;

 
C.__An agent or attorney of the trustee; or

 
D.__A corporation or other person or enterprise in which the
trustee, or a person that owns a significant interest in the
trustee, has an interest that might affect the trustee's
best judgment.

 
4.__Transaction between trustee and beneficiary.__A
transaction between a trustee and a beneficiary that does not
concern trust property but that occurs during the existence of
the trust or while the trustee retains significant influence over
the beneficiary and from which the trustee obtains an advantage
beyond the normal commercial advantage for such a transaction is
voidable by the beneficiary unless the trustee establishes that
the transaction was fair to the beneficiary.

 
5.__Opportunity belonging to trust.__A transaction not
concerning trust property in which the trustee engages in the
trustee's individual capacity involves a conflict between
personal and fiduciary interests if the transaction concerns an
opportunity properly belonging to the trust.

 
6.__Investment.__An investment by a trustee in securities of
an investment company or investment trust to which the trustee,
or its affiliate, provides services in a capacity other than as
trustee is not presumed to be affected by a conflict between
personal and fiduciary interests if the investment complies with
the prudent investor rule of chapter 9.__In addition to its
compensation for acting as trustee, the trustee may be
compensated by the investment company or investment trust for
providing those services out of fees charged to the trust.__If
the trustee receives compensation from the investment company or
investment trust for providing investment advisory or investment
management services, the trustee at least annually shall notify
the persons entitled under section 813 to receive a copy of the
trustee's annual report of the rate and method by which that
compensation was determined.


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