Section 564-B:8-818 - [Effective 9/24/2024] Limitations on Certain Trustees who are Beneficiaries(a)(1) Due to the inherent conflict of interest that exists between a trustee who is a beneficiary and other beneficiaries of the trust, unless the terms of a trust refer specifically to this paragraph and provide expressly to the contrary, any power conferred upon a trustee (other than the settlor of a revocable or amendable trust or a decedent's or settlor's spouse who is a trustee of a testamentary or inter vivos trust for which a marital deduction has been allowed) shall not include the following: (A) To make discretionary distributions of either principal or income to or for the benefit of such trustee, except to provide for that trustee's health, education, maintenance, or support as described under Internal Revenue Code sections 2041 and 2514.(B) To make discretionary allocations of receipts or expenses as between principal and income, unless such trustee acts in a fiduciary capacity whereby such trustee has no power to enlarge or shift any beneficial interest except as an incidental consequence of the discharge of such trustee's fiduciary duties.(C) To make discretionary distributions of either principal or income to satisfy any legal support obligations of such trustee.(2) Any of the powers described in subparagraph (1) that are conferred upon 2 or more trustees may be exercised by the trustees who are not so disqualified. If there is no trustee qualified to exercise such power, the interested parties may unanimously appoint a trustee who is not so disqualified to exercise such power(s), or an interested party may apply to a court of competent jurisdiction to appoint such a trustee and such power may be exercised by such trustee appointed by the court.Added by 2024, 292:10, eff. 9/24/2024.