PART X.

266 words·~1 min read·/hi/part-x-7

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

PART X. LIABILITY OF TRUSTEES AND RIGHTS OF

PERSONS DEALING WITH TRUSTEE

[ §554D-1001] Remedies for breach of trust.

(a)A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. A breach of trust may occur by reason of an action or by reason of a failure to act.

(b)To remedy a breach of trust that has occurred or may occur, the court may:

(1)Compel the trustee to perform the trustee's duties;

(2)Enjoin the trustee from committing a breach of trust;

(3)Compel the trustee to redress a breach of trust by paying money, restoring property, or other means;

(4)Order a trustee to account;

(5)Appoint a special fiduciary to take possession of the trust property and administer the trust;

(6)Suspend the trustee;

(7)Remove the trustee as provided in section 554D-706;

(8)Reduce or deny compensation to the trustee;

(9)Subject to section 554D-1012, void an act of the trustee, impose a lien or a constructive trust on trust property, or trace trust property wrongfully disposed of and recover the property or its proceeds;

(10)Order that the trustee, not the trust, shall bear the trustee's attorney's fees and those incurred by other parties to the trust; or

(11)Order any other appropriate relief, including punitive damages.

(c)The court, for cause shown, may relieve a trustee from liability for any breach of trust or wholly or partly excuse a trustee who has acted honestly and reasonably from liability for a breach of trust. [L 2021, c 32, pt of §2]