633.4207  Directory powers.

1.  If the terms of the trust grant a person other than the trustee power to direct certain actions of the trustee, the trustee shall act in accordance with the exercise of the power unless an attempted exercise violates the terms of the trust or the trustee is aware that the attempted exercise violates a fiduciary duty which the person owes the beneficiaries of the trust or the trustee believes or has reason to know that the individual is incompetent.

2.  The holder of a directory power who violates a fiduciary duty owed to the beneficiaries is liable for any loss which results.

Section History: Recent form

  99 Acts, ch 125, §53, 109

Footnotes

  Section effective July 1, 2000; 99 Acts, ch 125, §109


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