Liability of the trustee to the beneficiary
Sec. 11. (Liability of the Trustee to the Beneficiary)
(a) The trustee is accountable to the beneficiary for the trust
estate.
(b) If the trustee commits a breach of trust, he is liable to the
beneficiary for:
(1) any loss or depreciation in the value of the trust property as a
result of the breach;
(2) any profit made by the trustee through the breach;
(3) any reasonable profit which would have accrued on the trust
property in the absence of a breach; and
(4) reasonable attorney's fees incurred by the beneficiary in
bringing an action on the breach.
(c) In the absence of a breach of trust the trustee has no liability
to the beneficiary either for any loss or depreciation in value of the
trust property or for a failure to make a profit.
(d) The trustee is liable to the beneficiary for acts of an agent
which, if committed by the trustee, would be a breach of the trust if
he:
(1) directs or permits the act of the agent;
(2) delegates the authority to perform an act to the agent which he
is under a duty not to delegate;
(3) fails to use reasonable care in the selection or retention of the
agent;
(4) fails to exercise proper supervision over the conduct of the
agent;
(5) approves, acquiesces in or conceals the act of the agent; or
(6) fails to use reasonable effort to compel the agent to reimburse
the trust estate for any loss or to account to the trust estate for any
profit.
(Formerly: Acts 1971, P.L.416, SEC.4.)
Last modified: May 27, 2006