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    The Lawletter Blog

    CORPORATIONS: Nonresident Trust Company Fiduciary Power Reciprocity Statutes

    Posted by Matthew T. McDavitt on Fri, Mar 11, 2016 @ 10:03 AM

    The Lawletter Vol 41, No 3

    Matthew McDavitt, Senior Attorney, National Legal Research Group

         Most states now allow nonresident corporations, such as trust companies, to serve in fiduciary roles such as the personal representative of a decedent estate, trustee, or trust or as the conservator of a guardianship estate. However, various state statutes place varying requirements on such fiduciary roles, such as whether state certification is required by such out-of-state corporate fiduciaries, which fiduciary roles are available to trust companies, and whether an in-state agent must be designated for service.

         One frequent requirement placed upon nonresident companies seeking to serve in a fiduciary role is that of reciprocity: The out-of-state corporation is allowed only the powers and authority granted to nonresident fiduciaries in its state of incorporation. Thus, where a trust company seeks to serve in a fiduciary role in another state, it is imperative to know whether both the state of incorporation and the foreign jurisdiction are "reciprocity" states. The following is a chart compiling the citations of the statutory nonresident corporate fiduciary reciprocity provisions currently in force in the 25 states that possess them: 

     

    STATE  RECIPROCITY STATUTORY REQUIREMENT
    Alabama Ala. Code § 10A-2-15.41
    Arkansas Ark. Code Ann. § 4-31-303
    Connecticut Conn. Gen. Stat. § 45a-206
    Delaware Del. Code Ann. tit. 8, § 380
    Georgia Ga. Code Ann. § 53-12-321
    Illinois 205 Ill. Comp. Stat. 620/4-2
    Iowa Iowa Code §§ 633.64, 633.503
    Kansas Kan. Stat. Ann. § 59-1701(a)(4)
    Maine Me. Rev. Stat. tit. 18, § 4162
    Massachusetts Mass. Gen. Laws ch. 167C, § 17
    Minnesota Minn. Stat. § 303.25
    Mississippi Miss. Code Ann. § 81-5-43
    Missouri Mo. Rev. Stat. § 362.600
    Nevada Nev. Rev. Stat. § 662.245
    New Jersey N.J. Stat. Ann. § 17:9A-316(B)
    New York N.Y. Banking Law § 131(4)(b)
    North Dakota N.D. Cent. Code § 6-08-25
    Oklahoma Okla. Stat. tit. 6, § 1002
    Pennsylvania 7 Pa. Stat. Ann. § 106
    Rhode Island R.I. Gen. Laws § 19-3.1-6
    South Dakota S.D. Codified Laws § 51A-5-8
    Tennessee Tenn. Code Ann. § 35-50-107(a)(2)(A)
    Texas Tex. Est. Code Ann. § 505.003
    Vermont Vt. Stat. Ann. tit. 11A, § 15.01
    Wisconsin Wis. Stat. § 223.12

     

    Topics: corporations, Matt McDavitt, nonresident trust company, reciprocity statutes, fiduciary power

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