§ 1101. Trust advisors and trust protectors
(a) A trust protector or trust advisor is any person, other than a trustee, who under
the terms of the trust, an agreement of the qualified beneficiaries authorized by
the terms of the trust, or a court order has a power or duty with respect to a trust,
including, without limitation, one or more of the following powers:
(1) the power to modify or amend the trust instrument to achieve favorable tax status
or respond to changes in any applicable federal, State, or other tax law affecting
the trust, including any rulings, regulations, or other guidance implementing or interpreting
such laws;
(2) the power to amend or modify the trust instrument to take advantage of changes in
the rule against perpetuities, laws governing restraints on alienation, or other State
laws restricting the terms of the trust, the distribution of trust property, or the
administration of the trust;
(3) the power to appoint a successor trust protector or trust advisor;
(4) the power to review and approve a trustee’s trust reports or accountings;
(5) the power to change the governing law or principal place of administration of the
trust;
(6) the power to remove and replace any trust advisor or trust protector for the reasons
stated in the trust instrument;
(7) the power to remove a trustee, cotrustee, or successor trustee for the reasons stated
in the trust instrument, and to appoint a successor;
(8) the power to consent to a trustee’s or cotrustee’s action or inaction in making distributions
to beneficiaries;
(9) the power to increase or decrease any interest of the beneficiaries in the trust,
to grant a power of appointment to one or more trust beneficiaries, or to terminate
or amend any power of appointment granted in the trust; however, a modification, amendment,
or grant of a power of appointment may not grant a beneficial interest in a charitable
trust with only charitable beneficiaries to any noncharitable interest or purpose
and may not grant a beneficial interest in any trust to the trust protector or trust
advisor or to the estate or for the benefit of the creditors of such trust protector
or such trust advisor;
(10) the power to perform a specific duty or function that would normally be required of
a trustee or cotrustee;
(11) the power to advise the trustee or cotrustee concerning any beneficiary;
(12) the power to consent to a trustee’s or cotrustee’s action or inaction relating to
investments of trust assets; and
(13) the power to direct the acquisition, disposition, or retention of any trust investment.
(b) The exercise of a power by a trust advisor or a trust protector shall be exercised
in the sole and absolute discretion of the trust advisor or trust protector and shall
be binding on all other persons. (Added 2009, No. 20, § 1.)