Montana Code 72-38-603. Settlor’s powers — powers of withdrawal
72-38-603. Settlor’s powers — powers of withdrawal. (1) To the extent a trust is revocable by a settlor, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other than a trustee or person holding an adverse interest, the trustee may follow a direction from the settlor and the other person holding the power to revoke even if the direction is contrary to the terms of the trust.
Terms Used In Montana Code 72-38-603
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Montana Code 72-38-103
- Power of withdrawal: means a presently exercisable general power of appointment other than a power:
(a)exercisable by a trustee and limited by an ascertainable standard; or
(b)exercisable by another person only upon consent of the trustee or a person holding an adverse interest. See Montana Code 72-38-103
- Property: means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein. See Montana Code 72-38-103
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Settlor: means a person, including a testator, who creates or contributes property to a trust. See Montana Code 72-38-103
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee and a cotrustee. See Montana Code 72-38-103
(2)To the extent a trust is revocable, rights of the beneficiaries are subject to the control of the settlor and the duties of the trustee, including the duty to provide notice, are owed exclusively to the settlor.
(3)During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.