14-10808. Powers to direct
A. While a trust is revocable, the trustee may follow a direction of the settlor
that is contrary to the terms of the trust.
B. If the trust provides that the assets in the trust are subject to the direction
of the settlor or a cotrustee, beneficiary or third party, the trustee has no duty to
review the directions it is directed to make or to notify the beneficiaries regarding any
investment action taken pursuant to the direction. The trustee is not responsible for the
purchase, monitoring, retention or sale of assets that are subject to the direction of
the settlor or a cotrustee, beneficiary or third party. The trustee is not subject to
liability if the trustee acts pursuant to the direction, even if the actions constitute a
breach of fiduciary duty, unless the trustee acts in bad faith or with reckless
indifference.
C. The terms of a trust may confer on a trustee or other person a power to direct
the modification or termination of the trust.
D. Unless the trust instrument provides otherwise, a person, other than a
beneficiary, who holds a power to direct is presumptively a fiduciary who, as such, is
required to act in good faith with regard to the purposes of the trust and the interests
of the beneficiaries. The holder of a power to direct is liable for any loss that results
from breach of a fiduciary duty.
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