RSA 564-B:1-113 · Precatory Language

564-B:1-113 Precatory Language. –

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(a)

For purposes of this section, the following definitions apply:

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(1)

"Letter of wishes" means a record that:

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(A)

Is not a trust instrument;

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(B)

Is created by a settlor; and

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(C)

Contains precatory language.

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(2)

"Precatory language" means language that:

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(A)

Is not binding on any trustee, trust advisor, or trust protector;

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(B)

Expresses the settlor's wishes regarding the exercise of any discretionary power by a trustee, trust advisor, or trust protector; and

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(C)

Is not inconsistent with the terms of the trust.

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(b)

In exercising a discretionary power, a trustee, trust advisor, or trust protector may consider precatory language contained in the trust instrument or a letter of wishes.

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(c)

Precatory language does not impose any duty on any trustee, trust advisor, or trust protector, and the fact that a trustee, trust advisor, or trust protector does not exercise a discretionary power in accordance with precatory language shall not create an inference that the trustee, trust advisor, or trust protector improperly exercised the power.

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(d)

In determining whether a trustee, trust advisor, or trust protector exercised a discretionary power in a manner that is consistent with the settlor's intent, a court may consider precatory language contained in the trust instrument or a letter of wishes. A court may consider precatory language contained in a letter of wishes regardless of whether the trust instrument is ambiguous.

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(e)

Except as provided under the terms of the trust or by court order, a trustee, trust advisor, or trust protector shall not have any duty to provide any beneficiary a copy of a letter of wishes. Source. 2019, 230:1, eff. Sept. 10, 2019. ARTICLE 2 JUDICIAL PROCEEDINGS

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