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Indiana Code

Ind. Code § 30-4-1-3 (2026)

Application and interpretation of rules of law and terms of trust

✓ current as of May 2026
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     Sec. 3. (Application and Interpretation of the Rules of Law and the Terms of the Trust)

     The rules of law contained in this article shall be interpreted and applied to the terms of the trust so as to implement the intent of the settlor and the purposes of the trust. If the rules of law and the terms of the trust conflict, the terms of the trust shall control unless the rules of law clearly prohibit or restrict the article which the terms of the trust purport to authorize.

Formerly: Acts 1971, P.L.416, SEC.2.

 

Notes of Decisions
Cited in 19 cases (2 in the last 5 years), 1980–2026 · leading case: In Re Est. of Meyer, 747 N.E.2d 1159 (Ind. Ct. App. 2001).
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In Re Est. of Meyer, 747 N.E.2d 1159 (Ind. Ct. App. 2001). · cites it 2× “1992) (citing Ind. Code § 30-4-1-3 (requiring that courts "implement the intent of the settlor and the purposes of the trust"); Powell v.”
Malachowski v. Bank One, Indianapolis, 590 N.E.2d 559 (Ind. 1992). “The Beneficiaries argue that Bank One breached its fiduciary duty when it failed to follow the express intent of the settlor that the Lilly stock be retained in the Trust.”
Marshall & Ilsley Trust Co., N.A. v. Woodward, 848 N.E.2d 1175 (Ind. Ct. App. 2006). · cites it 2× “” Ind.Code § 30-4-1-3. If there is a conflict, “the terms of the trust shall control unless the rules of law clearly prohibit or restrict the article which the terms of the trust purport to authorize.”
Harold O. Fulp, Jr. v. Nancy A. Gilliland, 998 N.E.2d 204 (Ind. 2013). “A trustee breaches his or her fiduciary duties by violating any duty owed to the settlor or beneficiary.”
Hinds v. McNair, 413 N.E.2d 586 (Ind. Ct. App. 1980). “We feel both arguments, however, require the imposition of terms which supplement or contradict the intention of the settlors.”
In Re Valma M. Hanson Revocable Trust No. 103-83-1, 779 N.E.2d 1218 (Ind. Ct. App. 2002). · cites it 2× “As the majority notes, Indiana's Trust Code provides that its rules of law are to "be interpreted and applied to the terms of the trust so as to implement the intent of the settlor and the purposes of the trust.”
Matter of Della Lustgarten Nathan Trust, 638 N.E.2d 789 (Ind. 1994). · cites it 2× “" Ind. Code § 30-4-1-3 . Moreover, Ind. Code § 30-4-3-24 provides in relevant part: (a) On petition by a trustee or beneficiary, the court may, in its discretion, terminate the trust: (1) If the purpose of the trust has been fulfilled or has become illegal or impossible of…”
In Re Last Will & Testament of Stonecipher, 849 N.E.2d 1191 (Ind. Ct. App. 2006). · cites it 2× “" Ind.Code § 30-4-1-3. We examine the trust document as a whole to determine the plain and unambiguous purpose of the settlor as that intent appears within the four corners of the instrument.”
Evansville Greenway & Remediation Trust v. S. Indiana Gas & Elec. Co., 661 F. Supp. 2d 989 (S.D. Ind. 2009). · cites it 2× “Ind.Code § 30-4-1-3. In other words, the Trust Code is designed to empower the creation of trusts and to uphold their validity and enforce their intended terms, unless doing so is “clearly” prohibited or restricted.”
Stephanie A. Schrage v. In the Matter of the Seberger Living Trust u/t/d April 27, 2009, 52 N.E.3d 45 (Ind. Ct. App. 2016). · cites it 4× “” Ind.Code § 30-4-1-3. If there is a conflict, “the terns of the trust shall control unless the rules of law clearly prohibit or restrict the article which the terms of the trust purport to authorize.”
Graninger v. Nat'l City Bank, 849 N.E.2d 1191 (Ind. Ct. App. 2006). · cites it 2× “” Ind.Code § 30-4-1-3. We examine the trust document as a whole to determine the plain and unambiguous purpose of the settlor as that intent appears within the four corners of the instrument.”
In the Matter of the Revocable Living Trust Agreement of Joseph W. Dague & the Revocable Living Trust Agreement of Dorothy K. Dague v. Jean E. Galloway & Joseph E. Dague (mem. dec.), No. 25A05-1602-TR-240 (Ind. Ct. App. Dec. 30, 2016). · cites it 2× “” Ind. Code § 30-4-1-3 . In re Trust Created Under Last Will & Testament of Stonecipher, 849 N.”
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