Uniform Directed Trust Act of 2023

This bill updates the District of Columbia's laws to create a Uniform Directed Trust Code, allowing individuals to establish trusts where a separate director can make investment and management decisions without needing the trustee's approval. The legislation clarifies how these trusts operate by defining the roles of trustees and directors, setting rules for sharing information between them, and distinguishing between a director's power to guide the trust and a beneficiary's power to appoint assets. It also adds specific protections by confirming that a trustee has an insurable interest in the life of a settlor or their close relatives when life insurance proceeds are intended for trust beneficiaries. Additionally, the act permits a trustee to follow instructions from the creator of a revocable trust even if those instructions conflict with the original written terms of the trust.