Trustee's liability for breach of trust
Sec. 32. (a) Except as stated in subsections (b) and (c), the trustee,
by provisions of the trust, can be relieved of liability for breach of
trust.
(b) A provision in the trust instrument is not effective to relieve
the trustee of liability for breach of trust committed in bad faith,
intentionally, or with reckless indifference to the interest of the
beneficiary, or of liability for any profit that the trustee has derived
from a breach of trust.
(c) A provision that relieves the trustee of liability for breach of
trust is ineffective if it is inserted in the trust instrument as the result
of an abuse by the trustee of a fiduciary or confidential relationship
to the settlor.
As added by P.L.149-1984, SEC.1.
Last modified: May 27, 2006