20 Pennsylvania Consolidated Statutes § 7788 - Exculpation Of Trustee - Utc 1008

§ 7788. Exculpation of trustee - UTC 1008.

(a) When exculpatory provision unenforceable.--A provision of a trust instrument relieving a trustee of liability for breach of trust is unenforceable to the extent that it:

(1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or

(2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.

(b) Exculpatory provision by trustee.--An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.

Cross References. Section 7788 is referred to in section 7705 of this title.

Section: Previous  7781  7782  7783  7784  7785  7786  7787  7788  7789  7790  7790.1  7790.2  7790.3  7791  7792  Next

Last modified: October 8, 2016