2005 Idaho Code - 68-10-105 — NOTICE OF PROPOSED ACTION

                                  TITLE  68
                            TRUSTS AND FIDUCIARIES
                                  CHAPTER 10
                       UNIFORM PRINCIPAL AND INCOME ACT
                                   PART 1.
                       DEFINITIONS AND FIDUCIARY DUTIES
    68-10-105.  NOTICE OF PROPOSED ACTION. (a) A trustee may give a notice of
proposed action regarding a matter governed by this chapter as provided in
this section. For the purpose of this section, a proposed action includes a
course of action and a decision not to take action.
    (b)  The trustee shall mail notice of the proposed action to all adult
beneficiaries who are receiving, or are entitled to receive, income under the
trust or to receive a distribution of principal if the trust were terminated
at the time the notice is given.  If all beneficiaries of the trust are
incapacitated persons, then notice shall be mailed to each of the
incapacitated person's guardians or conservators who are appointed in
accordance with chapter 5, title 15, Idaho Code.
    (c)  Notice of proposed action need not be given to any person who
consents in writing to the proposed action. The consent may be executed at any
time before or after the proposed action is taken.
    (d)  The notice of proposed action shall state that it is given pursuant
to this section and shall include all of the following:
    (1)  The name and mailing address of the trustee;
    (2)  A copy of the trust instrument, if any;
    (3)  A description of the action proposed to be taken and an explanation
    of the reasons for the action;
    (4)  The time within which objections to the proposed action can be made,
    which shall be at least thirty (30) days from the mailing of the notice of
    proposed action;
    (5)  The date on or after which the proposed action may be taken or is
    effective;
    (6)  A statement that the recipient may petition for a judicial
    determination of the proposed action;
    (7)  A form on which consent or objection to the proposed action may be
    indicated.
    (e)  A beneficiary may object or consent to the proposed action by mailing
a written objection or consent to the trustee at the address stated in the
notice of proposed action within the time period specified in the notice of
proposed action.
    (f)  A trustee is not liable to a beneficiary for an action regarding a
matter governed by this chapter if the trustee does not receive a written
objection to the proposed action from the beneficiary within the applicable
period and the other requirements of this section are satisfied. If no
beneficiary entitled to notice objects under this section, the trustee is not
liable to any current or future beneficiary with respect to the proposed
action.
    (g)  If the trustee receives a written objection within the applicable
period, either the trustee or a beneficiary may petition the court to have the
proposed action taken as proposed, taken with modifications, or denied. In the
proceeding, a beneficiary objecting to the proposed action has the burden of
proving that the trustee's proposed action should not be taken. A beneficiary
who has not objected is not estopped from opposing the proposed action in the
proceeding. If the trustee decides not to implement the proposed action, the
trustee shall notify the beneficiaries of the decision not to take the action
and the reasons for the decision, and the trustee's decision not to implement
the proposed action does not itself give rise to liability to any current or
future beneficiary. A beneficiary may petition the court to have the action
taken, and has the burden of proving that it should be taken.