Ind. Code » Title 30
Indiana Code

Ind. Code § 30-4-3-7 (2026)

Self-dealing; transactions between trusts

✓ current as of May 2026
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     Sec. 7. (a) Unless the terms of the trust provide otherwise or the transaction is authorized under section 7.5 of this chapter, IC 28-1-12-8, or IC 28-6.1-6-26, the trustee has a duty:

(1) not to loan funds to the trustee or an affiliate;

(2) not to purchase or participate in the purchase of trust property from the trust for the trustee's own or an affiliate's account;

(3) not to sell or participate in the sale of the trustee's own or an affiliate's property to the trust; or

(4) if a corporate trustee, not to purchase for or retain in the trust its own or a parent or subsidiary corporation's stock, bonds, or other capital securities. However, the trustee may retain such securities already held in trusts created prior to September 2, 1971.

     (b) Unless the terms of the trust provide otherwise, a corporate trustee may invest in, purchase for, or retain in the trust its own or an affiliate's obligations, including savings accounts and certificates of deposit, without the investment, purchase, or retention constituting a conflict of interest under section 5 of this chapter.

     (c) Unless the terms of the trust provide otherwise, a corporate trustee does not violate subsection (a) by investing in, purchasing for, or retaining in the trust its own or an affiliate's obligations, including savings accounts and certificates of deposit, if the payment of each obligation is fully insured by the Federal Deposit Insurance Corporation, the National Credit Union Share Insurance Fund, or any insurer approved by the department of financial institutions under IC 28-7-1-31.5.

     (d) If the terms of the trust permit the trustee to deal with a beneficiary for the trustee's own account, the trustee has a duty to deal fairly with and to disclose to the beneficiary all material facts related to the transaction which the trustee knows or should know.

     (e) Unless the terms of the trust provide otherwise, the trustee may sell, exchange, or participate in the sale or exchange of trust property from one (1) trust to the trustee as trustee of another trust, provided the sale or exchange is fair and reasonable with respect to the beneficiaries of both trusts and the trustee discloses to the beneficiaries of both trusts all material facts related to the sale or exchange which the trustee knows or should know.

     (f) This section does not prohibit a trustee from enforcing or fulfilling any enforceable contract or agreement:

(1) executed during the settlor's lifetime; and

(2) between the settlor and the trustee in the trustee's individual capacity.

Formerly: Acts 1971, P.L.416, SEC.4. As amended by Acts 1982, P.L.171, SEC.118; P.L.174-1986, SEC.1; P.L.8-1991, SEC.34; P.L.176-1996, SEC.34; P.L.238-2005, SEC.34; P.L.202-2007, SEC.3; P.L.226-2007, SEC.22; P.L.89-2011, SEC.75; P.L.194-2017, SEC.9.

 

Notes of Decisions
Cited in 5 cases, 1994–2019 · leading case: Brenda Sue Gittings & Marc Richmond Gittings v. William H. Deal, 109 N.E.3d 963 (Ind. 2018).
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Brenda Sue Gittings & Marc Richmond Gittings v. William H. Deal, 109 N.E.3d 963 (Ind. 2018). · cites it 2× “I.C. § 30-4-3-7(d) (1993). It is undisputed that when Georgia asked Brenda to sign the deeds to transfer the property in 1995, Georgia did not provide Brenda with the GLR Trust Agreement, which contained material information about how the transfer would affect Brenda's and…”
Huff v. Huff, 892 N.E.2d 1241 (Ind. Ct. App. 2008). · cites it 2× “Ind.Code § 30-4-3-7 provides in relevant part that, “[ujnless the terms of *1247 the trust provide otherwise .”
Brenda Sue Gittings & Marc Richmond Gittings v. William H. Deal, 84 N.E.3d 749 (Ind. Ct. App. 2017). · cites it 2× “Further, Indiana Code Section 30-4-3-7(d) provided: Unless the terms of the trust provide otherwise, the trustee may sell, exchange, or participate in the sale or exchange of trust property from one (1) trust to himself as trustee of another trust, provided the sale or exchange…”
Cohen v. Gainer Bank, N.A., 628 N.E.2d 1246 (Ind. Ct. App. 1994). “§ 30-4-3-7(d). The Beneficiaries argue that Gainer dealt with itself as trustee of the trusts which sold and bought the property and that Gainer failed to disclose to the Beneficiaries its role in the transaction.”
In the Matter of the Living Trust Agreement of Virgil C. Morningstar & Agnes M. Morningstar, Teresa J. Morningstar v. Nina Fortunka & STAR Fin. Bank (Ind. Ct. App. 2019). · cites it 4× “Breach of Duty Relating to Finder’s Fees [31] Morningstar argues that her receipt of a finder’s fee is not prohibited self-dealing under Ind. Code § 30-4-3-7 . 14 She argues that she presented evidence of a practice in which Virgil, prior to his death, paid her compensation for…”
— Ind. Code § 30-4-3-7(d) — 3 cases
Brenda Sue Gittings & Marc Richmond Gittings v. William H. Deal, 109 N.E.3d 963 (Ind. 2018). “I.C. § 30-4-3-7(d) (1993). It is undisputed that when Georgia asked Brenda to sign the deeds to transfer the property in 1995, Georgia did not provide Brenda with the GLR Trust Agreement, which contained material information about how the transfer would affect Brenda's and…”
Brenda Sue Gittings & Marc Richmond Gittings v. William H. Deal, 84 N.E.3d 749 (Ind. Ct. App. 2017). “Further, Indiana Code Section 30-4-3-7(d) provided: Unless the terms of the trust provide otherwise, the trustee may sell, exchange, or participate in the sale or exchange of trust property from one (1) trust to himself as trustee of another trust, provided the sale or exchange…”
Cohen v. Gainer Bank, N.A., 628 N.E.2d 1246 (Ind. Ct. App. 1994). “§ 30-4-3-7(d). The Beneficiaries argue that Gainer dealt with itself as trustee of the trusts which sold and bought the property and that Gainer failed to disclose to the Beneficiaries its role in the transaction.”
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