(a) This chapter shall be known, and may be cited, as the California Uniform Directed Trust Act. (b) The Legislature finds and declares all of the following: (1) This chapter governs an arrangement commonly known as a directed trust. (2) In a directed trust, the terms of the trust grant a person other than a trustee a power over some aspect of the trustâs administration. (3) Under this chapter, this power is called a power of direction, the person that holds the power is called a trust director, a trustee that is subject to the power is called a directed trustee, and the trust is a directed trust. (4) A directed trustee is required to take reasonable action to comply with a trust directorâs exercise or nonexercise of a power of direction. (5) Except for willful misconduct, a directed trustee is liable only for its own breach of trust in executing a direction and not for the trust directorâs breach of trust in exercising or not exercising the power of direction.
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