PROB § 16600

(a) This chapter shall be known, and may be cited, as the California Uniform Directed Trust Act.

(b) The Legislature finds and declares all of the following:

(1) This chapter governs an arrangement commonly known as a directed trust.

(2) In a directed trust, the terms of the trust grant a person other than a trustee a power over some aspect of the trust’s administration.

(3) Under this chapter, this power is called a power of direction, the person that holds the power is called a trust director, a trustee that is subject to the power is called a directed trustee, and the trust is a directed trust.

(4) A directed trustee is required to take reasonable action to comply with a trust director’s exercise or nonexercise of a power of direction.

(5) Except for willful misconduct, a directed trustee is liable only for its own breach of trust in executing a direction and not for the trust director’s breach of trust in exercising or not exercising the power of direction.