Idaho Trustee Powers

Part of my Idaho Trusts Overview.

By Ronald W. Brilliant, Attorney at Law · Licensed in Idaho, Nevada & California · Last reviewed: September 2026 against the Idaho Code (Titles 15 and 68) as posted by the Idaho Legislature (July 1, 2026)

In This TopicIdaho TrustsTopic 3 of 14: Trustee Powers

A trustee’s powers are the actions the trustee is legally allowed to take with the trust. Title 15 says the powers of trustees are set forth in the uniform powers of trustees act, sections 68-104 through 68-113 of the Idaho Code (Idaho Code § 15-7-401). Title 68 calls that law the “Uniform Trustees’ Powers Act” (Idaho Code § 68-113).

This page first explains the powers that act gives trustees. It then covers the additional powers that Title 15 gives every trustee, and how a trustee can get court-issued letters of trusteeship as evidence of authority (Idaho Code §§ 15-7-402, 15-7-403).

The Uniform Trustees’ Powers Act

Key Definitions

For this act, a “trust” means an express trust created by a trust instrument, including a will, in which a trustee has the duty to manage a trust asset for the benefit of a named or described income or principal beneficiary, or both (Idaho Code § 68-104(1)). A “trustee” means an original, added, or successor trustee (§ 68-104(2)).

Some arrangements are not a “trust” under this act. The exclusions include (§ 68-104(1)):

• Resulting or constructive trusts.
• A business trust that issues certificates to beneficiaries, an investment trust, or a voting trust.
• A security instrument, or a trust created by a court judgment or decree.
• A liquidation trust, or a trust mainly for paying dividends, interest, salaries, wages, pensions, profits, or employee benefits of any kind.
• An instrument in which a person is a nominee or escrowee for another, or a trust created in deposits in a financial institution.
• Any other trust whose nature does not allow general trust administration.

An instrument that is not a “trust” under this definition may still adopt any part of the act by reference (Idaho Code § 68-105(b)).

The act measures a trustee against a “prudent man.” That term means a trustee whose use of trust powers is reasonable and equitable in view of the interests of the income or principal beneficiaries, or both, and in view of how people of ordinary prudence, diligence, discretion, and judgment would manage their own affairs (Idaho Code § 68-104(3)).

Where the Powers Come From

The trustee has all the powers the act gives, unless the trust instrument limits them (Idaho Code § 68-105(a)). From the time the trust is created until its assets are finally distributed, a trustee may perform, without court authorization, every act a prudent man would perform for the purposes of the trust (Idaho Code § 68-106(a)).

These powers come with a duty. In using any of its powers, a trustee must act with due regard to its obligation as a fiduciary (§ 68-106(b)). A court may also relieve a trustee from restrictions on its powers under section 68-108, described below (Idaho Code § 68-108(a)).

The Specific Powers Listed in the Act

The act lists specific powers, while making clear the list is not the limit (Idaho Code § 68-106(a), (c)). Subject to the prudent-man standard and the trustee’s fiduciary duty, a trustee has these powers (§ 68-106(c)):

Area	Powers	Idaho Code
Holding assets	Collect, hold, and keep assets received from a trustor until the trustee judges they should be disposed of, even assets in which the trustee is personally interested; receive additions to the trust.	§ 68-106(c)(1)-(2)
Businesses	Continue or take part in running a business or other enterprise, and incorporate, dissolve, or otherwise change its form.	§ 68-106(c)(3)
Investing and banking	Acquire an undivided interest in an asset in which the trustee already holds an undivided interest in any trust capacity; invest and reinvest as the trust provides or as provided by law; deposit trust funds in a bank, including a bank operated by the trustee.	§ 68-106(c)(4)-(6)
Buying, selling, and borrowing against property	Acquire assets, including real estate, in the name of the trust; sell or dispose of an asset for cash or on credit, at public or private sale; manage, develop, improve, exchange, partition, change the character of, or abandon an asset or any interest in it; and encumber, mortgage, or pledge an asset for a term within or beyond the term of the trust, in connection with using any of the trustee’s powers.	§ 68-106(c)(7)
Buildings and land	Make ordinary or extraordinary repairs or alterations; demolish improvements; raze or erect party walls or buildings; subdivide, develop, or dedicate land to public use; vacate plats and adjust boundaries; adjust valuation differences on exchange or partition; dedicate easements to public use without consideration.	§ 68-106(c)(8)-(9)
Leases, minerals, and options	Lease as lessor or lessee, with or without an option to buy or renew, for a term within or beyond the term of the trust; lease for exploration and removal of minerals or other natural resources, or enter a pooling or unitization agreement; grant an option to dispose of a trust asset, or take an option to acquire any asset.	§ 68-106(c)(10)-(12)
Securities	Vote securities in person or by proxy; pay calls, assessments, and other sums charged against securities; sell or exercise stock subscription or conversion rights; consent, directly or through a committee or agent, to a reorganization, consolidation, merger, dissolution, or liquidation; hold securities in a nominee’s name without disclosing the trust (the trustee is liable for any act of the nominee).	§ 68-106(c)(13)-(16)
Insurance, borrowing, and advances	Insure trust assets against damage or loss and the trustee against liability to third persons; borrow money; advance money to protect the trust and for administration expenses, losses, and liabilities, with a lien on trust assets, as against the beneficiary, for those advances and any interest.	§ 68-106(c)(17)-(18)
Claims and expenses	Pay or contest any claim; settle claims by compromise, arbitration, or otherwise; release an uncollectible claim in whole or in part; pay taxes, assessments, trustee compensation, and other expenses of collecting, caring for, administering, and protecting the trust.	§ 68-106(c)(19)-(20)
Income and principal	Allocate items of income or expense to income or principal as provided by law, including creating reserves out of income for depreciation, obsolescence, amortization, or depletion of mineral or timber properties.	§ 68-106(c)(21)
Distributions	Pay a sum distributable to a beneficiary under legal disability, without liability, to the beneficiary or for the beneficiary’s use to a court-appointed legal representative or, if none, to a relative; distribute property and money in divided or undivided interests and adjust valuation differences.	§ 68-106(c)(22)-(23)
Advisors, lawsuits, and documents	Employ attorneys, auditors, investment advisors, or agents, even if associated with the trustee, to advise or assist in administration; act on their recommendations without independent investigation; employ agents to perform any act of administration, whether or not discretionary; prosecute or defend actions to protect trust assets and the trustee; sign and deliver all instruments needed to use the trustee’s powers.	§ 68-106(c)(24)-(26)

Several of these powers connect to other parts of Title 68. How a trustee invests is covered on the Prudent Investor Rule page, and how receipts and expenses are split between income and principal is covered on the Principal and Income page. Other ways to pay money for a minor are on the Payments to Minors and Special Needs Trusts page.

Substituting Property of Equivalent Value

Some trusts let the grantor swap in other property of equivalent value. In that case, regardless of the trust’s terms, the trustee has a fiduciary duty to determine that the substitute property really is of equivalent value before allowing the substitution (Idaho Code § 68-106A).

Limits on the Trustee’s Office

A trustee may not transfer its office to someone else, or delegate the entire administration of the trust to a co-trustee or anyone else (Idaho Code § 68-107(1)). This limit does not apply to transfers permitted under chapter 14 of title 26 of the Idaho Code, which is outside this overview (§ 68-107(2)).

Conflicts of Interest

If the trustee’s duty conflicts with its own interest, or with its interest as trustee of another trust, when using a trust power, the power may be used only with court authorization (Idaho Code § 68-108(b)). The exceptions are the powers in sections 68-106(c)(1), (4), (6), (18), and (24): keeping assets received from the trustor, acquiring undivided interests, depositing funds in the trustee’s own bank, borrowing and advances, and employing associated advisors (§ 68-108(b)).

For a corporate trustee, personal profit or advantage to an affiliated or subsidiary company or association counts as personal profit to the trustee (§ 68-108(b)).

Court Relief from Restrictions

The act does not affect a court’s power to relieve a trustee from restrictions the trust or the act would otherwise place on it (Idaho Code § 68-108(a)). This requires cause shown, a petition by the trustee or an affected beneficiary, and appropriate notice to the affected parties (§ 68-108(a)).

Co-Trustees

When three or more trustees hold a power, a majority may exercise it (Idaho Code § 68-109(a)). A trustee who did not join in the action is not liable to the beneficiaries or others for its consequences (§ 68-109(a)).

A dissenting trustee who joins an act at the majority’s direction is not liable for its consequences, if the dissent was expressed in writing to any co-trustee at or before the time of joining (§ 68-109(a)).

If one of two or more appointed trustees cannot or will not accept, or later stops being a trustee, the remaining trustees carry out the trust and take over all powers, duties, and discretionary authority given to the trustees jointly (§ 68-109(b)). These rules do not excuse a co-trustee from liability for failing to take part in administration or failing to try to prevent a breach of trust (§ 68-109(c)).

Protection for People Dealing With a Trustee

A third person dealing with or assisting a trustee may assume, without asking, that the trustee has the power and is using it properly (Idaho Code § 68-110). A third person without actual knowledge that the trustee is exceeding or misusing its powers is fully protected, as if the trustee had and properly used those powers (§ 68-110).

A third person also does not have to make sure trust assets paid or delivered to the trustee are properly applied (§ 68-110). A trustee may also give a certification of trust instead of the full trust document, as explained on the Certification of Trust and Trustee Appointment page.

Which Trusts the Act Covers

Except as the trust specifically provides otherwise, the act applies to any trust established after the act’s effective date (Idaho Code § 68-111). The act is to be interpreted to make the law uniform among the states that enact it (Idaho Code § 68-112).

Additional Powers Under Title 15

In addition to the powers in the Uniform Trustees’ Powers Act, an Idaho trustee has these powers (Idaho Code § 15-7-402):

• To sever any trust estate on a fractional share basis into two or more separate trusts, for any reason (§ 15-7-402(1)).
• To divide a trust into two or more single trusts, or consolidate two or more trusts into a single trust, following the procedure described below (§ 15-7-402(2)).
• To terminate a trust whose assets have a net fair market value, taken collectively, of less than $100,000, following the procedure described below (§ 15-7-402(4)).

These rules apply to all trusts, whenever created (§ 15-7-402(5)).

Dividing or Combining Trusts Without Court

A trustee may divide a trust or consolidate trusts on the terms and conditions it considers appropriate, provided the trustee makes a written determination that all three of these are true (Idaho Code § 15-7-402(2)):

1. The division or consolidation is not inconsistent with the trustor’s intent for any trust involved.
2. The division or consolidation would facilitate administration of the trusts.
3. The division or consolidation would be in the best interests of all beneficiaries and would not materially impair their respective interests.

The Required Notice

The trustee must give written notice of the proposed division or consolidation by personal service or certified mail. The notice goes to all interested persons of every trust affected, and to any trustee of those trusts who does not join in the notice (§ 15-7-402(2)).

The notice must (§ 15-7-402(2)):

• State the trustee’s name and mailing address.
• Include a copy of the governing instrument of each trust to be divided or consolidated.
• Include a statement of assets and liabilities of each trust, dated within 90 days of the notice.
• Fully describe the terms and manner of the division or consolidation.
• State the reasons supporting the proposal.
• Tell the recipient of the right to petition for a court decision on the proposal.
• Include a form the recipient can use to consent or object.

When the Trustee May Proceed

If the trustee receives written consent from all persons entitled to notice, the trustee may divide or consolidate the trusts as described in the notice (§ 15-7-402(2)). Anyone dealing with the trustee of the resulting trust may rely on the trustee’s authority and does not have to look into whether the division or consolidation was valid or proper (§ 15-7-402(2)).

Asking the Court to Divide or Combine Trusts

Any interested person may petition the court of the county where the trust’s principal place of administration is located for an order dividing or consolidating trusts (Idaho Code § 15-7-402(3)). For this purpose, the principal place of administration is the trustee’s usual place of business where the trust records are kept, or the trustee’s residence if the trustee has no place of business (§ 15-7-402(3)).

If the trustee has already started the nonjudicial process, a petition may still be filed unless the trustee has received all necessary consents (§ 15-7-402(3)).

After a hearing, if the court finds the same three requirements are met, it may direct the division or consolidation on appropriate terms (§ 15-7-402(3)). In its discretion, the court may provide for payment of reasonable fees and expenses for any party from one or more of the trusts (§ 15-7-402(3)).

Ending a Small Trust (Under $100,000)

If the net fair market value of a trust’s assets, taken together, is less than $100,000, the trustee may terminate the trust using a set procedure (Idaho Code § 15-7-402(4)). The steps are:

Step	What happens	Idaho Code
1. Make a plan	The trustee decides on a plan for distribution that matches the trust’s dispositive plan as nearly as possible.	§ 15-7-402(4)(a)
2. Give notice	The trustee gives written notice to all interested persons that it intends to distribute the assets under the plan unless an interested person objects in writing within 30 days after the date of the notice. The notice must also contain a statement of the rules in paragraph (e), which explain how the 30 days are counted.	§ 15-7-402(4)(b)
3a. No objection	If no written objection is received within 30 days, the trustee must distribute the assets under the plan.	§ 15-7-402(4)(c)
3b. Objection received	If a written objection is received within 30 days, the trustee must not distribute. The trustee may petition the court for an order authorizing the plan, and the court has plenary (full) authority to approve, modify, or reject the petition.	§ 15-7-402(4)(d)

How the 30 Days Are Counted

The “date of notice” is the later of the date stated in the notice (if any) or the date the notice was actually mailed or personally delivered (§ 15-7-402(4)(e)). A written objection is timely if it is mailed to the trustee within 30 days, and the person objecting has the burden of proving the mailing date (§ 15-7-402(4)(e)).

Spendthrift Provisions

A spendthrift or similar provision in the trust does not affect this termination power. The exception is when the trust instrument specifically says the trustee does not have the power to terminate the trust (§ 15-7-402(4)). Spendthrift provisions themselves are discussed on the Trust Protectors, Purpose Trusts, and Dry Trusts page.

Court Appointment and Letters of Trusteeship

Letters of trusteeship are issued by the court as evidence of a trustee’s authority (Idaho Code § 15-7-403). On application to the Idaho court where the trust is registered, and after notice to all interested parties, the court may appoint the trustee, or successor trustee if applicable (§ 15-7-403).

The trustee then files an acceptance of the duties of the office. The acceptance contains the trustee’s oath to perform the duties of the office according to law. Letters of trusteeship are then issued (§ 15-7-403).

The letters may be recorded with the county recorder in any county where trust property is located. From the time they are filed for record, all persons are on notice of their contents (§ 15-7-403).

What the Application Must Contain

The application must include at least the following (§ 15-7-403(1)-(8)):

1. The applicant’s interest in the matter, the priority of the person whose appointment is sought, and the names, addresses, and priority of anyone else with a prior or equal right to appointment under law or the trust terms.
2. A description of the trust.
3. The name and address of any existing trustee whose appointment has not ended.
4. The name and address of the person or entity to be appointed.
5. The names and addresses of all current and contingent beneficiaries, and the ages of any who are minors.
6. A statement that a copy of the trust is in the court’s possession or comes with the application, or that copies of certain portions come with it. Those portions show the grantor and original trustee, any language about appointing an original or successor trustee (including limits), the signature pages, and any amendments about appointing a trustee.
7. A statement that, after reasonable diligence, the applicant is unaware of any instrument revoking the trust.
8. For a successor trustee, how and when the prior trustee’s appointment ended, and a statement that copies of related documents are in the court’s possession or come with the application.

The application is made to the court in which the trust is registered (§ 15-7-403). For how registration works, see Trust Registration and Court Jurisdiction.

Powers Not Granted by the Trust or the Law

Under Idaho’s Trust and Estate Dispute Resolution Act (TEDRA), a “matter” that may be resolved includes the grant to a trustee of “any necessary or desirable power not otherwise granted in the governing instrument or given by law” (Idaho Code § 15-8-103(1)(d)). Any party may have a judicial proceeding for a declaration of rights about such a matter (Idaho Code § 15-8-201(1)(a)). See Trust and Estate Disputes (TEDRA).

The court of registration can also instruct trustees and decide whether any power exists in a proceeding under section 15-7-201 (Idaho Code § 15-7-201(a)(3)). A court may also relieve a trustee from restrictions on its powers under section 68-108, described above (Idaho Code § 68-108(a)).

How I Can Help

I help trustees understand what the Uniform Trustees’ Powers Act lets them do, when a conflict of interest calls for court authorization, and whether to divide, combine, or end a trust under Title 15, prepare the required written determinations and notices, and apply for letters of trusteeship. I also help beneficiaries respond to a trustee’s proposal, including by objecting or petitioning the court. Request a consultation to discuss your situation.

This page provides general information about Idaho trust law, based on the Idaho Code, and is not legal advice. Court rules and case law also affect these matters. Every situation is different; consult an attorney about yours. Reading this page does not create an attorney-client relationship.