2014 -- S 2635

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LC004404

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO FIDUCIARIES

     

     Introduced By: Senators Jabour, Lombardi, and Lombardo

     Date Introduced: March 04, 2014

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 18-4 of the General Laws entitled "Powers of Fiduciaries" is

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hereby amended by adding thereto the following section:

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     18-4-32. Powers to direct. – (a) While a trust is revocable, the trustee may follow a

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direction of the settlor that is contrary to the terms of the trust;

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     (b) If the terms of a trust confer on a person other than the settlor of a revocable trust the

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power to direct certain actions of the trustee, the trustee shall act in accordance with an exercise

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of the power unless the attempted exercise is manifestly contrary to the terms of the trust or the

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trustee knows the attempted exercise would constitute a serious breach of a fiduciary duty that the

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person holding the power owes to the beneficiaries of the trust;

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     (c) The terms of a trust may confer on a trustee or other person a power to direct the

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modifications or termination of the trust;

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     (d) A person who holds a power to direct is presumptively a fiduciary who is required to

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act in good faith, with regard to the purposes of the trust and the interests of the beneficiaries. The

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holder of a power to direct shall be liable for any loss that results from a breach of fiduciary duty.

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     SECTION 2. This act shall take effect on passage and shall apply to all trusts, whenever

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executed.

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LC004404

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FIDUCIARIES

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     This act would permit the settlor of a revocable trust to provide for a person other than

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the trustee to direct actions of the trust.

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     This act would take effect on passage and would apply to all trusts, whenever executed.

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LC004404

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