Section 11.98A.100. Directed trustee—Directed trustee's liability for action or inaction of statutory trust advisor—No duty to review actions of statutory trust advisor.

(1) As used in this chapter, "directed trustee" means a trustee that, under the terms of the governing instrument:

(a) Must follow the direction of a statutory trust advisor as to a particular duty or function, to the extent the trustee follows any such direction;

(b) May not undertake a particular duty or function without direction from a statutory trust advisor, to the extent the trustee fails to undertake such duty or function due to the absence of such direction;

(c) Must obtain the consent or authorization of a statutory trust advisor with respect to a particular duty or function, to the extent the trustee timely seeks but fails to obtain such consent or authorization; or

(d) Must obtain the consent or authorization of a statutory trust advisor with respect to a particular duty or function, to the extent the trustee obtains such consent or authorization and acts in accordance therewith, but only if and to the extent that the governing instrument clearly indicates that the protections of directed trustee status are intended by the testator, trustor, or power holder.

(2) A directed trustee is not liable, either individually or as trustee, for the following:

(a) Any loss that results from compliance with the statutory trust advisor's direction or from actions taken with the prior consent or authorization of the statutory trust advisor;

(b) Any loss that results from any action or inaction of a statutory trust advisor with respect to any power granted to the statutory trust advisor under the governing instrument; or

(c) Any loss that results from a failure to take any action proposed by a directed trustee that requires the prior consent of a statutory trust advisor, if the directed trustee who had a duty to propose such action timely sought but failed to obtain that consent.

(3) Absent clear and convincing evidence to the contrary, the actions of the directed trustee pertaining to matters within the scope of the statutory trust advisor's authority, such as confirming that the statutory trust advisor's directions have been carried out and recording and reporting actions taken at the statutory trust advisor's direction or other information pursuant to RCW 11.98A.070, are presumed to be administrative actions taken by the directed trustee solely to allow the directed trustee to perform those duties assigned to the directed trustee under the terms of the governing instrument, and the administrative actions do not constitute an undertaking by the directed trustee to monitor the statutory trust advisor or otherwise participate in actions within the scope of the statutory trust advisor's authority.

(4) Whenever a directed trustee is to follow the direction of a statutory trust advisor, then, except to the extent that the terms of the governing instrument provide otherwise, the directed trustee has no duty to:

(a) Monitor the conduct of the statutory trust advisor, or provide advice to the statutory trust advisor or consult with the statutory trust advisor, including, without limitation, any duty to perform investment or suitability reviews, inquiries, or investigations or to make recommendations or evaluations with respect to any investments to the extent the statutory trust advisor has authority to direct the acquisition, disposition, or retention of any such investment;

(b) Communicate with or warn or apprise any beneficiary or third party concerning instances in which the directed trustee would or might have exercised the directed trustee's own discretion in a manner different from the manner directed by the statutory trust advisor; or

(c) Commence a proceeding against the statutory trust advisor.

(5) This section does not relieve the trustee of the trustee's duty under RCW 11.97.010 to act in good faith and with honest judgment.

[ 2015 c 115 § 13.]

2015 c 115 § 13.