The powers and discretions of a tax trust advisor must be as provided in the governing instrument and may be exercised or not exercised, in the best interests of the trust, in the sole and absolute discretion of the tax trust advisor and are binding on any other person and any other interested party, fiduciary, and excluded fiduciary. In addition to the powers and discretions granted to the tax trust advisor in the governing instrument, the tax trust advisor may also exercise any of the following powers and discretions to the extent the exercise is not prohibited under the terms of the governing instrument:

1. (1) Direct the trustee with respect to tax matters related to the trust, including tax elections, tax returns to be filed, positions to be taken on tax returns, tax payments to be made, and the anticipated tax impact to the trust or a beneficiary of any transaction involving the trust, including:

   1. (a) The retention, purchase, sale, exchange, or tender of any asset of the trust;
   2. (b) Any contribution to or distribution from the trust: or
   3. (c) Any contribution to or distribution from an entity owned by the trust;
2. (2) Direct the trustee to rely on any tax information received pursuant to § 55-2-23;
3. (3) Select one or more tax advisors to prepare tax returns or other related filings;
4. (4) Direct the trustee to sign and file tax returns;
5. (5) Direct the trustee with respect to any additional powers and discretions over tax-related matters provided in the governing instrument; and
6. (6) Direct the trustee as to any tax-related powers referenced in chapter 55-1A.

Source: SL 2025, ch 196 , § 5.