§ 4-10-814 — Discretionary powers; tax savings; distribution limitations

(a) Repealed By Laws 2007, Ch. 155, § 5.
(b) Subject to subsection (d) of this section, and unless
the terms of the trust expressly indicate that a rule in this
subsection does not apply:
(i) A person other than a settlor who is a
beneficiary and trustee of a trust that confers on the trustee a
power to make discretionary distributions to or for the
trustee's personal benefit may exercise the power only in
accordance with an ascertainable standard; and
(ii) A trustee may not exercise a power to make
discretionary distributions to satisfy a legal obligation of
support that the trustee personally owes another person.
(c) A power, the exercise of which is limited or
prohibited by subsection (b) of this section may be exercised by
a majority of the remaining trustees whose exercise of the power
is not so limited or prohibited. If the power of all trustees is
so limited or prohibited, the trustee may appoint a special
fiduciary with authority to exercise the power.
(d) Subsection (b) of this section does not apply to:
(i) A power held by the settlor's spouse who is the
trustee of a trust for which a marital deduction, as defined in
Section 2056(b)(5) or 2523(e) of the Internal Revenue Code of
1986, as in effect on July 1, 2003, was previously allowed;
(ii) Any trust during any period that the trust may
be revoked or amended by its settlor; or
(iii) Contributions to a trust that qualify for the
annual exclusion under Section 2503(c) of the Internal Revenue
Code of 1986, as in effect on July 1, 2003, or which are subject
to an annual withdrawal right.
(e) A court may review a trustee's exercise of discretion
concerning a discretionary distribution only if the trustee acts
dishonestly, with improper motive or fails to use judgment.
(f) Except as otherwise provided in the terms of a trust,
the trustee shall not consider the assets or resources of a
beneficiary in determining whether to make a distribution of
trust income or principal.