| | | 3.__Report.__A trustee shall send to the distributees or | | permissible distributees of trust income or principal, and to | | other qualified beneficiaries who request it, at least annually | | and at the termination of the trust, a report of the trust | | property, liabilities, receipts and disbursements, including the | | source and amount of the trustee's compensation, a listing of the | | trust assets and, if feasible, their respective market values and | | tax bases.__Upon a vacancy in a trusteeship, unless a cotrustee | | remains in office, a report must be sent to the qualified | | beneficiaries by the former trustee. A personal representative of | | a deceased trustee or a conservator of the estate or, if no | | conservator has been appointed, a guardian of an incapacitated | | trustee may send qualified beneficiaries a report on behalf of a | | deceased or incapacitated trustee. |
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| | | 4.__Waiver.__A beneficiary may waive the right to a trustee's | | report or other information otherwise required to be furnished | | under this section.__A beneficiary, with respect to future | | reports and other information, may withdraw a waiver previously | | given. |
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| | | §814.__Discretionary powers; tax savings |
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| | | 1.__Discretionary power; interests of beneficiaries.__ | | Notwithstanding the breadth of discretion granted to a trustee in | | the terms of the trust, including the use of such terms as | | "absolute," "sole" or "uncontrolled," the trustee shall exercise | | a discretionary power in good faith and in accordance with the | | terms and purposes of the trust and the interests of the | | beneficiaries.__A trustee's power to make distributions is | | discretionary notwithstanding terms of the trust providing that | | the trustee "shall" make distributions exercising a discretionary | | power, with or without standards. |
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| | | 2.__Discretionary distributions.__Subject to subsection 4, and | | unless the terms of the trust expressly indicate that a rule in | | this subsection does not apply: |
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| | | A.__A person other than a settlor who is a beneficiary and | | trustee of a trust that confers on the trustee a power to | | make discretionary distributions to or for the trustee's | | personal benefit may exercise the power only in accordance | | with an ascertainable standard relating to the trustee's | | individual health, education, support or maintenance within | | the meaning of the federal Internal Revenue Code of 1986, | | Section 2041(b)(1)(A) or 2514(c)(1), as in effect on July 1, | | 2005, or as later amended; and |
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