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2018 Georgia Code 53-12-260 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 53-12-260 Case Law from Google Scholar Amendments to OCGA 53-12-260

TITLE 53 WILLS, TRUSTS, AND ADMINISTRATION OF ESTATES

Section 12. (Revised Trust Code of 2010) Trusts, 53-12-1 through 53-12-506.

ARTICLE 13 TRUSTEES' DUTIES AND POWERS

53-12-260. Discretionary powers.

Notwithstanding the breadth of discretion granted to a trustee in the trust instrument, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith.

(Code 1981, §53-12-260, enacted by Ga. L. 2010, p. 579, § 1/SB 131.)

Law reviews.

- For annual survey on wills, trusts, guardianships, and fiduciary administration, see 64 Mercer L. Rev. 325 (2012).

JUDICIAL DECISIONS

No evidence of bad faith.

- Trial court did not err when the court granted the trustees summary judgment on the son's claims for breach of trust and breach of fiduciary duty because there was no evidence of bad faith, and, therefore, judicial intervention into the trustees' consistent decisions to treat all beneficiaries, including themselves, equally in the form of per stirpes distributions was not authorized; the son produced no evidence that the trustees ignored the beneficiaries' means of support, but even if the trustees had done so, the trustees could, in the trustees' discretion, exclude the beneficiaries' resources from their consideration on the basis of both: (i) the trust instrument's grant to distribute either equal or unequal amounts to each of the settlor's children; and (ii) the trustees' personal knowledge concerning the settlor's intended treatment of the children. McPherson v. McPherson, 307 Ga. App. 548, 705 S.E.2d 314 (2011).

Trustee's/executor's powers did not entitle trustee to ignore purpose of trust or commit waste.

- Trial court erred in concluding that a widow's considerable powers of control over two testamentary trusts as trustee and executor entitled her to summary judgment on two of the children's/beneficiaries' claims against the trust created for the purpose of supporting them during their lifetimes; she was required to diligently and in good faith ascertain whether they required support, and her powers over the assets did not entitle her to commit waste. Peterson v. Peterson, 303 Ga. 211, 811 S.E.2d 309 (2018).

Jury instruction on standard of care.

- In a breach of trust action, the trial court did not apply an incorrect standard of care in that a co-trustee could only be held liable if the co-trustee failed to act in good faith because if there was any error, the error was created by the co-trustee since the co-trustee consented to the instructions given and failed to request a charge that clearly set forth what the co-trustee asserted to be the proper standard for acts performed with absolute discretion. Reliance Trust Co. v. Candler, 294 Ga. 15, 751 S.E.2d 47 (2013).

Jury question as to whether duty of good faith breached.

- Jury question was presented as to whether two trustees of their children's trusts acted against the interests of the beneficiaries (their children) in bad faith by amending a partnership agreement to concentrate all voting power in themselves to the exclusion of the beneficiaries, who otherwise would have become partners when they turned 45. Likewise, the trustees as partners owed duties to the trusts as partners in the partnership. Rollins v. Rollins, 338 Ga. App. 308, 790 S.E.2d 157 (2016).

Cases Citing O.C.G.A. § 53-12-260

Total Results: 3  |  Sort by: Relevance  |  Newest First

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Peterson v. Peterson, 303 Ga. 211 (Ga. 2018).

Cited 11 times | Published | Supreme Court of Georgia | Mar 5, 2018

...h those interested in the estate); Rollins v. Rollins, 338 Ga. App. 308, 313 (790 SE2d 157) (2016) (saying that “our law is clear that a trustee has a duty to exercise discretionary powers in good faith” (citing to OCGA §§ 53-12-7 (a) (4); 53-12-260)); Restatement (Third) of Trusts § 86, comment (b) (2007) (“All powers of trusteeship are held in the trustee’s fiduciary capacity and must be exercised in good faith and to serve the interests of the beneficiaries.”)....
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Peterson v. Peterson, 811 S.E.2d 309 (Ga. 2018).

Cited 11 times | Published | Supreme Court of Georgia | Mar 5, 2018

...st with those interested in the estate); Rollins v. Rollins , 338 Ga.App. 308, 313, 790 S.E.2d 157 (2016) (saying that "our law is clear that a trustee has a duty to exercise discretionary powers in good faith" (citing to OCGA §§ 53-12-7 (a) (4) ; 53-12-260) ); Restatement (Third) of Trusts § 86, comment (b) (2007) ("All powers of trusteeship are held in the trustee's fiduciary capacity and must be exercised in good faith and to serve the interests of the beneficiaries.")....
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Reliance Trust Co. v. Candler, 294 Ga. 15 (Ga. 2013).

Cited 9 times | Published | Supreme Court of Georgia | Nov 4, 2013 | 751 S.E.2d 47, 2013 Fulton County D. Rep. 3328

...We granted Reliance’s petition for a writ of certiorari, directing the parties to address only these points: Did the Court of Appeals err when it upheld the jury’s verdict in favor of Respondents/Appellees and when it affirmed the trial court’s award of interest? 1. (a) Reliance claims that, pursuant to OCGA § 53-12-260,1 the language used in this trust instrument must be construed as granting the trustee absolute discretion to make distributions to Mr....
...Reliance consented to the instructions given and failed to request a charge that clearly set forth what it asserts to be the proper standard for review of acts performed with alleged absolute discretion. By failing to raise it below, Reliance waived its argument that, prior to enactment of OCGA § 53-12-260, Georgia’s courts had improperly conflated the standard of care imposed on trustees subject to “regular” discretion clauses with the standard imposed on trustees subject to “absolute discretion” clauses....
...Brinson, Norman S. Fletcher, Lee B. Carter, amici curiae. After the date this ease was tried but before Reliance filed its motion for new trial, the Revised Georgia Trust Code of 2010, OCGA § 53-12-1 et seq., became effective. Ga. L. 2010, p. 579, § 1. OCGA § 53-12-260 states: “Notwithstanding the breadth of discretion granted to a trustee in the trust instrument, including the use of such terms as ‘absolute,’ ‘sole,’ or ‘uncontrolled,’the trustee shall exercise a discretionary power in g...