LD 921
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LR 466
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§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


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