Wis. Stat. § 701.0808 — WI Code / Chapter 701 / Section 701.0808
Powers to direct; directing parties.
Status: in_force

(1) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.

(2) A settlor in a trust instrument, a court in a trust instrument or court order, or interested persons in a nonjudicial settlement agreement may appoint a directing party to direct the trustee on investment or distribution decisions or to make investment or distribution decisions regarding directed trust property. If a trustee acts in accordance with the direction of a directing party or fails to act due to lack of direction from a directing party, the trustee is not liable for any loss resulting directly or indirectly from any action taken or omitted with respect to the direction or lack of direction except for acts or omissions that are a result of the trustee’s willful misconduct.

(3) A trustee does not have a duty to do any of the following:

(a) Provide advice to, consult with, monitor, or evaluate a directing party’s conduct.

(b) Inform or warn a beneficiary, a 3rd party, or a directing party that the trustee disagrees with any of the directing party’s actions or directions.

(c) Prevent a directing party from giving a direction or taking any action.

(d) Compel a directing party to redress the directing party’s actions or directions.

(4) The administrative actions of a trustee related to matters within the scope of a directing party’s power, including confirming that the directing party’s directions have been carried out and recording and reporting actions taken pursuant to the directing party’s direction, do not constitute either monitoring the directing party’s actions or participating in the actions of the directing party.

(5) A directing party is a fiduciary and is required to act in good faith with regard to the terms of the trust and the interests of the beneficiaries. A directing party is liable for any loss that results from a breach of any of the directing party’s fiduciary duties.

(6)

(a) A directing party may request information about the trust from the trustee and, if the requested information is related to a power granted to the directing party, the trustee shall provide the requested information to the directing party. If a trustee is bound by any confidentiality restrictions with respect to information requested by a directing party, the trustee may require that the directing party agree to be bound by the confidentiality restrictions before delivering such information to the directing party. A trustee is not liable to any beneficiary for any loss or damages resulting from the trustee providing information to the directing party that is related to the power granted to the directing party.

(b) Except as otherwise provided in this chapter, a trustee does not have a duty to provide any information to the directing party that the directing party does not request.

(7) A trustee shall, in accordance with s. 701.1004 , pay or reimburse a directing party for attorney fees and costs to defend any claim made against the directing party.

(8) Sections 701.0701 , 701.0708 , 701.0709 , 701.1001 to 701.1003 , and 701.1005 to 701.1010 apply to a directing party as if the directing party was a trustee.

(9) A person who accepts an appointment as a directing party of a trust submits to the jurisdiction of the courts of this state, as provided in s. 701.0202 (1) .

History: 2013 a. 92 , 151 .