AMENDMENT FOR PRINTED BILL
1185ja
___________________ moved that HB 1185 be amended as follows:
On the printed bill, delete everything after the enacting clause and insert:
"
Section 1. That
§
55-1B-1
be amended to read as follows:
55-1B-1.
Terms used in this chapter mean:
(1)
"Instrument," any revocable or irrevocable trust document created inter vivos or
testamentary
or any custodial account agreement
;
(2)
"Trust protector," any disinterested third party whose appointment is provided for in the
trust
instrument;
(3)
Repealed by SL 2005, ch 260, § 2.
(4)
"Fiduciary," a trustee
or custodian
under any
testamentary or other trust
instrument
, an
executor, administrator, or personal representative of a decedent's estate, or any other
party, including a trust advisor, a trust protector, or a trust committee, who is acting in a
fiduciary capacity for any person, trust, or estate;
(5)
"Excluded fiduciary," any fiduciary excluded from exercising certain powers under the
instrument which powers may be exercised by the grantor,
custodial account owner,
trust
advisor, trust protector, trust committee, or other persons designated in the
trust
instrument;
(6)
"Investment trust advisor," a fiduciary, given authority by the
trust
instrument to exercise
all or any portions of the powers and discretions set forth in § 55-1B-10;
(7)
"Distribution trust advisor," a fiduciary, given authority by the
trust
instrument to exercise
all or any portions of the powers and discretions set forth in § 55-1B-11
;
(8) "Custodial account," an account, established by a party with a bank as defined in 26
U.S.C. 408(n), as of January 1, 2006, or with another person approved by the Internal
Revenue Service as satisfying the requirements to be a nonbank trustee or a nonbank
passive trustee set forth in U.S. Treasury Regulations promulgated under 26 U.S.C. 408,
that is governed by an instrument concerning the establishment or maintenance, or both,
of an individual retirement account, qualified retirement plan, Archer medical savings
account, health savings account, Coverdell education savings account, or any similar
retirement or savings vehicle permitted under the Internal Revenue Code of 1986, as of
January 1, 2006;
(9) "Custodial account owner," any party who establishes a custodial account; or has the
power to designate the beneficiaries or appoint the custodian of the custodial account; or
otherwise is the party who possesses the power to direct the investment, disposition, or
retention of any assets in the custodial account or name an authorized designee to effect
the same
.
Section 2. That
§
55-1B-2
be amended to read as follows:
55-1B-2.
An excluded fiduciary is not liable, either individually or as a fiduciary, for either of
the following:
(1)
Any loss that results from compliance with a direction of the trust advisor
, custodial
account owner, or authorized designee of a custodial account owner
;
(2)
Any loss that results from a failure to take any action proposed by an excluded fiduciary
that requires a prior authorization of the trust advisor if that excluded fiduciary timely
sought but failed to obtain that authorization.
Nothing in this subdivision imposes an
obligation or liability with respect to a custodian of a custodial account.
Any excluded fiduciary is also relieved from any obligation to perform investment
or suitability
reviews
and
, inquiries, or investigations or to
make recommendations
or evaluations
with respect
to any investments to the extent the trust advisor
, custodial account owner, or authorized designee
of a custodial account owner
had authority to direct the acquisition, disposition, or retention of any
such investment.
"