beyond the bounds of reasonable judgment, a settlor may manifest an intention to grant the trustee greater than ordinary latitude in exercising discretionary judgment. b. The UTA Sec. 7780.4 provides the discretionary powers be exercised in good faith in accordance with the provisions and purposes of the trust, notwithstanding the breadth of discretion granted in the trust instrument. c. How does such an intention affect the duty of the trustee and the role of the court? (1) It is contrary to sound policy, and a contradiction in terms, to permit the settlor to relieve a "trustee" of all accountability. (2) Once it is determined that the authority over trust distributions is held in the role of trustee, words such as "absolute" or "unlimited" or "sole and uncontrolled" are not interpreted literally. (3) Even under the broadest grant of fiduciary discretion, a trustee must act honestly and in a state of mind contemplated by the settlor. (4) Thus, the court will not permit the trustee to act in bad faith or for some purpose or motive other than to accomplish the purposes of the discretionary power. (5) Except as the power is for the trustee's personal benefit, the court will also prevent the trustee from failing to act, either arbitrarily or from a misunderstanding of the trustee's duty or authority. d. Within these limits, it is a matter of interpretation to ascertain the degree to which the settlor's use of language of extended (e.g., "absolute") discretion manifests an intention to relieve the trustee of normal judicial supervision and control in the exercise of a discretionary power over trust distributions. e.
Illustrations:
“A trustee's discretion shall be absolutely conclusive regarding any and all distributions or lack of them and shall not be subject to judicial review under any circumstances. In addition, trustee is under no obligation to distribute any amounts to or for settlor's child if such child has available 21