|
§1006.__Reliance on trust instrument |
|
| | A trustee who acts in reasonable reliance on the terms of the | trust as expressed in the trust instrument is not liable to a | beneficiary for a breach of trust to the extent the breach | resulted from the reliance. |
|
| §1007.__Event affecting administration or distribution |
|
| | If the happening of an event, including marriage, divorce, | performance of educational requirements or death, affects the | administration or distribution of a trust, a trustee who has | exercised reasonable care to ascertain the happening of the event | is not liable for a loss resulting from the trustee's lack of | knowledge. |
|
| §1008.__Exculpation of trustee |
|
| | 1.__Exculpation unenforceable.__A term of a trust relieving a | trustee of liability for breach of trust is unenforceable to the | extent that it: |
|
| A.__Relieves the trustee of liability for breach of trust | committed in bad faith or with reckless indifference to the | purposes of the trust or the interests of the beneficiaries; | or |
|
| B.__Was inserted as the result of an abuse by the trustee of | a fiduciary or confidential relationship to the settlor. |
|
| | 2.__Invalid; proof otherwise.__An exculpatory term drafted or | caused to be drafted by the trustee is invalid as an abuse of a | fiduciary or confidential relationship unless the trustee proves | that the exculpatory term is fair under the circumstances and | that its existence and contents were adequately communicated to | the settlor. |
|
| §1009.__Beneficiary's consent, release or ratification |
|
| | A trustee is not liable to a beneficiary for breach of trust | if the beneficiary consented to the conduct constituting the | breach, released the trustee from liability for the breach or | ratified the transaction constituting the breach, unless: |
|
| | 1.__Induced by improper conduct.__The consent, release or | ratification of the beneficiary was induced by improper conduct | of the trustee; or |
|
|