§554G-4.5 Advisors. (a) A transferor may appoint, through the trust instrument, one or more advisors or protectors, including:
(1) Advisors who have authority under the terms of the trust to remove and appoint trustees, advisors, trust committee members, or protectors;
(2) Advisors who have authority under the terms of the trust to direct, consent to, or disapprove of distributions from the trust; and
(3) Advisors, including the transferor beneficiary of the trust, who serve as investment advisors to the trust.
(b) While a trustee may appoint an advisor, the administrative and non-administrative authority over the trust shall remain with the trustee.
(c) Notwithstanding subsection (b), whenever there is a dispute, deadlock, or difference of opinion between a trustee and an advisor, the transferor may direct that the determination of the advisor shall be binding upon the trustee; provided that the trustee shall bear no liability or accountability for any act or transaction entered into or omitted as a result of the enforcement of the advisor's determination. The trustee's administrative and non-administrative fiduciary duty to the beneficiaries shall be waived as to the specific act or transaction entered into or omitted as a result of the enforcement of the advisor's determination; provided that:
(1) The trustee dissents in writing:
(A) Before the act or transaction is completed;
(B) To a failure to act; or
(C) In a reasonably timely manner to enter into a transaction; or
(2) If the advisor is appointed by the transferor under the terms of the trust and section 560:7-302 applies to the trust and the advisor, the trustee is not required to dissent in writing for the waiver of the trustee's administrative and nonadministrative fiduciary duties to the beneficiaries to take effect. [L 2011, c 161, §2; am L 2014, c 59, §2]
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