§560:7-306 Personal liability of trustee to third parties. (a) Unless otherwise provided in the contract, a trustee is not personally liable on contracts entered into in the trustee's fiduciary capacity in the course of administration of the trust estate, unless the trustee fails to disclose the trustee's representative capacity and identify the trust estate in the contract.
(b) A trustee is personally liable for obligations arising from ownership or control of property of the trust estate or for torts committed in the course of administration of the trust estate only if the trustee is personally at fault.
(c) Claims based on contracts entered into by a trustee in the trustee's fiduciary capacity, on obligations arising from ownership or control of the trust estate, or on torts committed in the course of trust administration may be asserted against the trust estate by proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable therefor.
(d) Any judgment obtained against the trustee in the trustee's fiduciary capacity may be collected against the trust estate. The question of liability as between the trust estate and the trustee individually may be determined in a proceeding for accounting, surcharge or indemnification or other appropriate proceeding. [L 1976, c 200, pt of §1; gen ch 1985; am L 2009, c 22, §1]
Hawaii Legal Reporter Citations
Trustees' discretion in purchase of real estate. 82-2 HLR 820643.
Section: Previous 560-7-205 560-7-206 560-7-301 560-7-302 560-7-303 560-7-304 560-7-305 560-7-306 560-7-307 560-7-401 560-7-501 560-8-101 560-8-102 560-8-201 560-8-301 NextLast modified: October 27, 2016