New Mexico has enacted the Uniform Directed Trust Act (UDTA). Rob Sitkoff served as the drafting committee char, Turney Berry served as the co-chair, and John Morley was the reporter. UDTA addresses the increasing popularity and use of directed trusts. In a directed trust, an individual other than the trustee has power over some aspect of the administration of the trust. These individuals may be referred to “trust directors,” trust advisors,” or “trust protectors.”The division of power between the trustee and the trust director can create issues relating to fiduciary duty and power. UDTA offers clear, functional guidelines that allow a settlor to structure a direct trust while saving important fiduciary safeguards for beneficiaries.
See Directed Trust Act, Uniform Law Commission, 2018.
Special thanks to Jack Burton for bringing this article to my attention.
