§ 26-5.2. Liability of fiduciary for actions of cofiduciary
A. Any power vested in three or more fiduciaries may be exercised by a majority, but a fiduciary who has not joined in exercising a power is not liable to the beneficiaries or to others for the consequences of the exercise. A dissenting fiduciary is not liable for the consequences of an act in which he joins at the direction of the majority of the fiduciaries if he expressed his dissent in writing to any of his cofiduciaries, if the act is not of itself a patent breach of trust.
B. A fiduciary shall be answerable and accountable only for his own acts, receipts, neglects or defaults, and not for those of any cofiduciary, nor for any banker, broker, or other person with whom the trust money or securities may be lawfully deposited, nor for any loss unless the same occurs through his own default or negligence.
C. Whenever the instrument under which a fiduciary or fiduciaries are acting reserves unto the trustor, testator, or creator or vests in an advisory or investment committee or any other person or persons, including a cofiduciary, to the exclusion of the fiduciary or the exclusion of one or more of several fiduciaries, authority to direct the making or retention of investments, or any investment, the excluded fiduciary or cofiduciary shall be liable, if at all, only as a ministerial agent and shall not be liable as fiduciary or cofiduciary for any loss resulting from the making or retention of any investment pursuant to such authorized direction.
D. This section does not excuse a cofiduciary from liability for failure to participate in the administration of trust, or to attempt to prevent a breach of trust, or to seek advice and guidance from the court in an apparently recurring situation unless otherwise expressly provided by the instrument under which the cofiduciary is acting.
E. As used in this section, "fiduciary" shall be defined as in § 8.01-2, except that it shall not include trustees subject to the requirements and provisions of Chapter 31 (§ 55-541.01 et seq.) of Title 55.
(1978, c. 327; 1980, c. 440; 2005, c. 935.)
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