§ 1112.05

Effective: September 14, 2016 Latest Legislation: House Bill 229 - 131st General Assembly (A)¿¿Notwithstanding any other provision of law to the contrary, while acting as the fiduciary of a trust, a family trust company may do all of the following:(1)¿Invest in a security of an investment company or investment trust for which the family trust company or a family affiliate provides services in a capacity other than as a fiduciary;(2)¿Place a security transaction using a broker that is a family affiliate;(3)¿Invest in an investment contract that is purchased from an insurance company or carrier owned by or affiliated with the family trust company or a family affiliate;(4)¿Enter into an agreement with a beneficiary or grantor of a trust relative to the appointment or compensation of the fiduciary or a family affiliate;(5)¿Transact with another trust, estate, guardianship, or conservatorship for which the family trust company is a fiduciary or in which a beneficiary has an interest;(6)¿Make an equity investment in a nonpublicly traded entity that may or may not be marketable and that is owned or controlled, either directly or indirectly, by one or more beneficiaries, family members,

ake an equity investment in a nonpublicly traded entity that may or may not be marketable and that is owned or controlled, either directly or indirectly, by one or more beneficiaries, family members, or family affiliates;(7)¿Deposit trust money in a financial institution that is owned or operated by a family affiliate;(8)¿Delegate the authority to conduct any transaction or action under this section to an agent of the family trust company or a family affiliate;(9)¿Purchase, sell, hold, own, or invest in any security, bond, real or personal property, stock, or other asset of a family affiliate;(10)¿Loan money to or borrow money from a family member or the family member's legal representative, another trust managed by the family trust company, or a family affiliate;(11) Act as proxy in voting any shares of stock that are assets of the trust;(12) Exercise any powers of control with respect to any interest in a business entity that is an asset of the trust, including, without limitation, the appointment of officers or directors who are family members;(13) Receive reasonable compensation for its services.(B) After full disclosure to the governing body of the family trust company is

n, the appointment of officers or directors who are family members;(13) Receive reasonable compensation for its services.(B) After full disclosure to the governing body of the family trust company is provided, nothing in this section prohibits a family trust company from entering into a transaction with or investing in any asset of any of the following:(1) A trust, estate, guardianship, or conservatorship for which the family trust company is a fiduciary;(2) A family affiliate;(3) Any other business entity, agent, or person for which a conflict of interest may exist. Last updated July 22, 2021 at 9:39 AM