A trust in which the trustee has less then full managerial authority, rather the additional control is appointed to someone else (fo example, an investment banker).
Definition from Nolo’s Plain-English Law Dictionary
A trust in which certain assets are managed by someone other than the trustee. For example, someone might set up a trust and name a banks trust department as trustee, but specify in the trust document that a business held in trust be managed by someone else. The outside manager goes by different names in different states: a cotrustee, special trustee, trust protector, or adviser. Directed trusts are authorized by law in about 30 states. Most hold at least $1 million in assets, and often much more.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:14 pm