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(a) A trust protector or trust advisor is any person, and may be a committee of more than one person, other than a trustee, who under the terms of the trust, an agreement of the qualified beneficiaries, or a court order has a power or duty with respect to a trust, including but not limited to, one or more of the following powers:
(1) The power to modify or amend the trust instrument to achieve favorable tax status or respond to changes in any applicable federal, state, or other tax law affecting the trust, including but not limited to, any rulings, regulations, or other guidance implementing or interpreting such laws;
(2) The power to amend or modify the trust instrument to take advantage of changes in the rule against perpetuities, laws governing restraints on alienation, or other state laws restricting the terms of the trust, the distribution of trust property, or the administration of the trust;
(3) The power to appoint a successor trust protector or trust advisor;
(4) The power to review and approve a trustee's trust reports or accountings;
(5) The power to change the governing law or principal place of administration of the trust;
(6) The power to remove and replace any trust advisor or trust protector for the reasons stated in the trust instrument;
(7) The power to remove a trustee, cotrustee, or successor trustee, for the reasons stated in the trust instrument, and appoint a successor;
(8) The power to consent to a trustee's or cotrustee's action or inaction in making distributions to beneficiaries;
(9) The power to increase or decrease any interest of the beneficiaries in the trust, to grant a power of appointment to one (1) or more trust beneficiaries, or to terminate or amend any power of appointment granted in the trust;
(10) The power to perform a specific duty or function that would normally be required of a trustee or cotrustee;
(11) The power to advise the trustee or cotrustee concerning any beneficiary;
(12) The power to consent to a trustee's or cotrustee's action or inaction relating to investments of trust assets;
(13) The power to direct the acquisition, disposition, or retention of any trust investment;
(14) The power to appoint under § 35-15-816(b)(27);
(15) The power to terminate all or part of a trust;
(16) The power to veto or direct all or part of any trust distribution;
(17) The power to borrow money with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust;
(18) The power to make loans out of trust property, including but not limited to, loans to a beneficiary on terms and conditions, including without interest, considered to be fair and reasonable under the circumstances;
(19) The power to vote proxies and exercise all other rights of ownership relative to securities and business entities held by the trust;
(20) The power to select one (1) or more investment advisors, managers or counselors, including but not limited to, a trustee and delegate to them any of its powers; and
(21) The power to direct the trustee with respect to any additional powers and discretions over investment and management of trust assets provided in the trust instrument.
(b) The exercise of a power by a trust advisor or a trust protector shall be exercised in the sole and absolute discretion of the trust advisor or trust protector and shall be binding on all other persons.
(c) Any power of a trust advisor or trust protector to directly or indirectly modify a trust may be granted notwithstanding §§ 35-15-410 --35-15-412 and 35-15-414.
(d) An excluded fiduciary may continue to follow the direction of a trust protector or trust advisor upon the incapacity or death of the grantor of a trust to the extent provided in the trust instrument.
(e) Notwithstanding anything in this section to the contrary, no modification, amendment or grant of a power of appointment with respect to a trust all of whose beneficiaries are charitable organizations may authorize a trust protector or trust advisor to grant a beneficial interest in such trust to any non-charitable interest or purpose.
Cite this article: FindLaw.com - Tennessee Code Title 35. Fiduciaries and Trust Estates § 35-15-1201 - last updated January 01, 2020 | https://codes.findlaw.com/tn/title-35-fiduciaries-and-trust-estates/tn-code-sect-35-15-1201.html
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