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§1006.__Reliance on trust instrument |
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| | | 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. |
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| | | §1007.__Event affecting administration or distribution |
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| | | 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. |
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| | | §1008.__Exculpation of trustee |
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| | | 1.__Exculpation unenforceable.__A term of a trust relieving a | | trustee of liability for breach of trust is unenforceable to the | | extent that it: |
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| | | 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 |
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| | | B.__Was inserted as the result of an abuse by the trustee of | | a fiduciary or confidential relationship to the settlor. |
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| | | 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. |
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| | | §1009.__Beneficiary's consent, release or ratification |
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| | | 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: |
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| | | 1.__Induced by improper conduct.__The consent, release or | | ratification of the beneficiary was induced by improper conduct | | of the trustee; or |
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