Relief of trustee's liability for breach of trust
Sec. 19. (Relief of Trustee's Liability for Breach of Trust)
(a) Unless the terms of the trust provide otherwise or unless if to
do so would frustrate, impair or defeat the purposes of the trust, a
beneficiary, except as provided in subsection (b) of this section,
relieves the trustee from liability for breach of trust as to that
beneficiary's interest if he:
(1) consents to or acquiesces in the act or omission which
constitutes a breach of trust;
(2) agrees to release or discharge the trustee from liability for
breach of trust after the act or omission constituting the breach
occurs;
(3) elects, under an option to affirm or reject a transaction entered
into as a breach of trust, to affirm the transaction; or
(4) participates in the act of the trustee which constitutes the
breach of trust.
(b) The consent, acquiescence, agreement to release or discharge,
affirmance, or participation by a beneficiary will not relieve the
trustee from liability if:
(1) at the time it was given the beneficiary was under an
incapacity;
(2) at the time it was given the beneficiary did not know of his
rights or all of the material facts which the trustee knew or should
have known;
(3) it was induced by the trustee's improper conduct;
(4) the trustee had an adverse interest in the transaction and the
transaction was not fair and reasonable; or
(5) the trustee pays or delivers a beneficiary's interest to that
beneficiary contrary to the terms of a trust with protective provisions.
(Formerly: Acts 1971, P.L.416, SEC.4.)
Last modified: May 27, 2006