Sec. 22. (Remedies of the Beneficiary against the Trustee)

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Terms Used In Indiana Code 30-4-3-22

  • Attorney: includes a counselor or other person authorized to appear and represent a party in an action or special proceeding. See Indiana Code 1-1-4-5
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • Beneficiary: has the meaning set forth in IC 30-2-14-2. See Indiana Code 30-4-1-2
  • Breach of trust: means a violation by the trustee of any duty which is owed to the settlor or beneficiary. See Indiana Code 30-4-1-2
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • Trustee: A person or institution holding and administering property in trust.
  • Trustee: has the meaning set forth in IC 30-2-14-13. See Indiana Code 30-4-1-2
     (a) A beneficiary of a trust may maintain an action:

     (1) to compel the trustee to perform his duties;

     (2) to enjoin the trustee from committing an act which may be a breach of trust;

     (3) to compel the trustee to redress a breach of trust; or

     (4) to remove a trustee for cause and to appoint a successor trustee.

     (b) If the trustee acquires property and wrongfully holds it outside the trust, a beneficiary is entitled at his option to either:

     (1) require the property to be transferred to the trust or

     (2) impose an equitable lien upon it to secure his claim for damages for breach of trust.

     (c) If the trustee commingles the trust funds or property with his own funds or property or converts the trust fund or property into another form which is wrongfully held outside the trust:

     (1) if the fund or property can be traced and identified, the beneficiary is entitled to restoration of the fund or property to the trust; or

     (2) if the fund or property cannot be traced and identified,

     (A) In a case of commingling of funds or property, the beneficiary is entitled to a lien against the trustee’s individual property from the date and in the amount of the fund or the value of the property at the time of the commingling.

     (B) In a case of conversion of property, the beneficiary is entitled to a lien against the trustee’s individual property from the date and according to the value of the property at the time of the conversion.

     (d) If the trustee is also a beneficiary, the other beneficiaries will be entitled to a charge against the trustee’s beneficial interest to secure their claims against him for a breach of trust.

     (e) If a beneficiary successfully maintains an action under subsection (a) of this section or is entitled to a judgment under subsections (b), (c), or (d) of this section, he is entitled to a judgment for reasonable attorney‘s fees.

Formerly: Acts 1971, P.L.416, SEC.4.

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