456.8-808. Powers to direct.
Powers to direct.
456.8-808. 1. While a trust is revocable, the trustee may follow adirection of the settlor that is contrary to the terms of the trust.
2. If the terms of a trust confer upon a person other than thesettlor of a revocable trust power to direct certain actions of thetrustee, the trustee shall act in accordance with an exercise of the powerunless the attempted exercise is contrary to the terms of the trust or thetrustee knows the attempted exercise would constitute a serious breach of afiduciary duty that the person holding the power owes to the beneficiariesof the trust.
3. The terms of a trust may confer upon a trustee or other person apower to direct the modification or termination of the trust.
4. A person, other than a beneficiary, who holds a power to direct ispresumptively a fiduciary who, as such, is required to act in good faithwith regard to the purposes of the trust and the interests of thebeneficiaries. The holder of a power to direct is liable for any loss thatresults from breach of a fiduciary duty.
(L. 2004 H.B. 1511)Effective 1-01-05