§ 7780.12. Definitions - UDTA 2.

276 words·~1 min read·/pa/title-20/chapter-77/7780-12·

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The following words and phrases when used in this subchapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Directed trust." A trust for which the terms of the trust grant a power of direction.

"Directed trustee." A trustee that is subject to a trust director's power of direction.

"Power of direction." As follows:

(1)A power over a trust granted to a person by the terms of the trust to the extent the power is exercisable while the person is not serving as a trustee.

(2)The term includes a power over the investment, management or distribution of trust property or other matters of trust administration and, in the case of a trust protector, may include powers to modify the terms of the trust.

(3)A power of direction includes incidental powers that are appropriate and necessary to the exercise or nonexercise of the power of direction. The rules specified in this subchapter govern the exercise of such incidental powers.

"Trust director." As follows:

(1)A person that is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee.

(2)A beneficiary or settlor of a trust may serve as a trust director of the trust.

"Trust protector." A trust director authorized by the terms of a trust to modify one or more terms of the trust.

"Willful misconduct." As follows:

(1)Intentional conduct that is malicious, designed to defraud or unconscionable.

(2)Mere negligence, gross negligence and recklessness do not constitute "willful misconduct."

20c7780.13s