IN SB0305

Defines seven categories of nontrustee fiduciaries: administrative trustee, distribution director, investment manager, trust advisor, trust protector, primary trustee, and distribution trustee, each with specific powers and duties related to trust administration.

Establishes that nontrustee fiduciaries owe duties of good faith, consistency with trust purposes, avoidance of self-dealing, and refraining from reckless or willful misconduct, with liability limited to cases of actual fraud, deception, or malicious intent unless the trust imposes a higher standard.

Protects trustees from liability for nontrustee fiduciary breaches unless the trustee had actual knowledge of the breach and the power and opportunity to prevent or redress it, and presumes trustee compliance with nontrustee fiduciary directions to be administrative actions.

Allows trust instruments to specify provisions regarding nontrustee fiduciary compensation, indemnification, monitoring duties, liability limitations, appointment procedures, and separate agreements between fiduciaries to address administrative and practical issues.

Establishes choice of law rules governing nontrustee fiduciaries: Indiana law applies if a nontrustee fiduciary and at least one beneficiary reside in Indiana, unless it would violate the trust's purpose or public policy of another jurisdiction serving as the principal place of trust administration.