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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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| | | Sec. 18. 18-B MRSA §814, sub-§2, ķA, as enacted by PL 2003, c. 618, Pt. | | A, §1 and affected by §2, is amended to read: |
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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 |
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| | | Emergency clause. In view of the emergency cited in the preamble, | | this Act takes effect July 1, 2005. |
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