14-11008. Exculpation of trustee
A. A term of a trust relieving a trustee of liability for breach of trust is
unenforceable to the extent that it either:
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.
2. Was inserted as the result of an abuse by the trustee of a fiduciary or
confidential relationship to the settlor.
B. 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.
C. Subsection B does not apply to an irrevocable trust created before January 1,
2009 or to a revocable trust created before January 1, 2009 that is not amended on or
after January 1, 2009.
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