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2020 Utah Code
Title 75 - Utah Uniform Probate Code
Chapter 7 - Utah Uniform Trust Code
Part 9 - Utah Uniform Prudent Investor Act
Section 906 - Investment direction.
Universal Citation: UT Code § 75-7-906 (2020)
75-7-906. Investment direction.
Enacted by Chapter 89, 2004 General Session
- (1) For purposes of this section, "investment direction" means a direction that is binding on the trustee, except for an investment direction given by a settlor as described in Subsection (2) to do any of the following with respect to an investment:
- (a) retention;
- (b) purchase;
- (c) sale;
- (d) exchange;
- (e) tender; or
- (f) any other transaction affecting ownership in the investment.
- (2)
- (a) During the time period that a trust is revocable, the trustee may follow any investment direction of the settlor, including an investment direction that:
- (i) is manifestly contrary to the terms of the trust; or
- (ii) seriously breaches a fiduciary duty to the beneficiaries.
- (b) The trustee is not liable for any loss resulting from following an investment direction described in Subsection (2)(a).
- (a) During the time period that a trust is revocable, the trustee may follow any investment direction of the settlor, including an investment direction that:
- (3) If the terms of a trust authorize a person to give investment direction to the trustee, the person authorized to give investment direction:
- (a) is presumptively a fiduciary only with respect to an investment direction that the person gives to the trustee;
- (b) is required to act in good faith with regard to:
- (i) the purposes of the trust; and
- (ii) the interests of the beneficiaries; and
- (c) is liable for any loss that results from breach of the fiduciary duty only with respect to an investment direction that the person gives to the trustee.
- (4) Except in cases of willful misconduct or gross negligence, a trustee is not liable for any loss that results from following an investment direction if:
- (a) the terms of a trust authorizes a person to give the investment direction to the trustee; and
- (b) the trustee acts in accordance with the investment direction given by a person described in Subsection (4)(a).
- (5) If the terms of a trust require another person's approval or consent to an investment decision of the trustee:
- (a) the person from whom approval or consent is required:
- (i) is presumptively a fiduciary;
- (ii) is required to act in good faith with regard to:
- (A) the purposes of the trust; and
- (B) the interests of the beneficiaries; and
- (iii) is liable for any loss that results from breach of the fiduciary duty; and
- (b) except in cases of willful misconduct or gross negligence, the trustee is not liable for any loss resulting from any act not taken as a result of the person's failure to respond to a request for approval or consent.
- (a) the person from whom approval or consent is required:
Enacted by Chapter 89, 2004 General Session
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