Current through 2023 Legislative Session
Section 16600 - Title; legislative findings and declarations(a) This chapter shall be known, and may be cited, as the California Uniform Directed Trust Act.(b) The Legislature finds and declares all of the following: (1) This chapter governs an arrangement commonly known as a directed trust.(2) In a directed trust, the terms of the trust grant a person other than a trustee a power over some aspect of the trust's administration.(3) Under this chapter, this power is called a power of direction, the person that holds the power is called a trust director, a trustee that is subject to the power is called a directed trustee, and the trust is a directed trust.(4) A directed trustee is required to take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction.(5) Except for willful misconduct, a directed trustee is liable only for its own breach of trust in executing a direction and not for the trust director's breach of trust in exercising or not exercising the power of direction.Added by Stats 2023 ch 721 (SB 801),s 3, eff. 1/1/2024.