The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:
"Action."With respect to an act of a trustee, includes a failure to act.
"Beneficiary."A person that:
(1) has a present or future beneficial interest in a trust, vested or contingent; or
(2) in a capacity other than that of trustee or protector, holds a power of appointment over trust property.
"Breach of trust."A violation by a trustee or trust director of a duty that the trustee or trust director owes to a beneficiary of the trust.
"Charitable trust."A trust, or portion of a trust, created for a charitable purpose described in section 7735(a) (relating to charitable purposes; enforcement - UTC 405).
"Current beneficiary."A person 18 years of age or older to or for whom income or principal of a trust must be distributed currently or a person 25 years of age or older to or for whom income or principal of a trust may, in the trustee's discretion, be distributed currently.
"Guardian."A person other than a guardian ad litem who is appointed by the court to make decisions regarding the property of an individual.
"Interests of the beneficiaries."The beneficial interests provided in the terms of a trust.
"Jurisdiction."With reference to a geographic area, a country, state or county.
"Power of appointment."A power given to a person by the terms of a trust, exercisable in a nonfiduciary capacity, to grant and define a beneficial interest in trust property or to grant a power of appointment over the trust property.
"Power of withdrawal."The unrestricted power of a beneficiary, acting as a beneficiary and not as a trustee, to transfer to himself or herself the entire legal and beneficial interest in all or a portion of trust property. However, a power to withdraw the greater of the amount specified in section 2041(b)(2), 2503(b) or 2514(e) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 2041(b)(2), 2503(b) or 2514(e)), or any lesser amount determined by reference to one or more of these provisions, may not be treated as a power of withdrawal.
"Property."Anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein.
"Qualified beneficiary."Assuming nonexercise of all testamentary powers of appointment, a beneficiary who on the date the beneficiary's qualification is determined:
(1) is a distributee or permissible distributee of trust income or principal;
(2) would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in paragraph (1) terminated on that date; or
(3) would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.
"Revocable trust."A trust is revocable to the extent the settlor, immediately before the time as of which the determination is made, had the power, acting without the consent of the trustee or any person holding an interest adverse to revocation, to prevent the transfer of the trust property at the settlor's death by revocation or amendment of or withdrawal of property from the trust.
"Settlor."A person, including a testator, who creates or contributes property to a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion.
"Spendthrift provision."A term of a trust that restrains both voluntary and involuntary transfer of a beneficiary's interest.
"Terms of a trust."Either of the following:
(1) Except as otherwise provided in paragraph (2), the manifestation of the settlor's intent expressed in the trust instrument.
(2) The trust's provisions, as established, determined or amended by a trustee or other person in accordance with applicable law, by a court order or by a nonjudicial settlement agreement under section 7710.1 (relating to nonjudicial settlement agreements - UTC 111) or rules of construction.
"Trust instrument."A will or other written instrument executed by the settlor that contains trust provisions, including any amendments thereto.
"Trustee."Includes an original, additional and successor trustee and a cotrustee.