AR HB1765

Establishes the Uniform Directed Trust Act as a new chapter (28-76) in Arkansas law, effective January 1, 2020, creating a legal framework for directed trusts where a trust director exercises powers separate from the trustee.

Defines key terms including "directed trust," "trust director," and "directed trustee," with trust directors having fiduciary duties similar to trustees while directed trustees are protected from liability for following valid directions from trust directors.

Repeals Arkansas Code § 28-73-808 (Powers to Direct) and amends § 28-73-603 to clarify that settlors and those holding withdrawal powers can direct contrary-to-trust actions in revocable trusts.

Establishes that directed trustees must comply with trust director directions but are not liable for losses resulting from such compliance, and trust directors and trustees have no duty to monitor or advise each other unless the trust terms specify otherwise.

Applies the new directed trust framework to any trust with its principal place of administration in Arkansas, including trusts created before January 1, 2020, but only for decisions or actions occurring on or after the effective date.