Indiana Code - Trusts and Fiduciaries - Title 30, Section 30-4-3-9
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Indiana Law > Trusts and Fiduciaries > Indiana Code - Trusts and Fiduciaries - Title 30, Section 30-4-3-9
Duty of trustee under control of third persons
Sec. 9. (Duty of Trustee under Control of Third Person)
(a) If the terms of the trust give a person a power to direct the
trustee in the administration of the trust and those terms expressly
direct the trustee to rely, or relieve the trustee from liability if he
does rely, on that person's directions, the trustee may do so and will
incur no liability for any loss to the trust estate.
(b) If the terms of the trust give a person a power to direct the
trustee in the administration of the trust, except as provided in
subsection (a) of this section:
(1) If the person holds the power as a fiduciary, the trustee has a
duty to refuse to comply with any direction which he knows or
should know would constitute a breach of a duty owed by that person
as a fiduciary.
(2) If the person holds the power solely for his own benefit, the
trustee may refuse to comply only if the attempted exercise of the
power violates the terms of the trust with respect to that power.
(Formerly: Acts 1971, P.L.416, SEC.4.)
Last modified: May 27, 2006