§60-1209. Directed trustee — Reasonable action to comply —

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

Exceptions — Non-effective release of trustee.

A. Subject to subsection B of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under paragraph 1 of subsection B of Section 7 of this act, and the trustee is not liable for the action.

B. A directed trustee must not comply with a trust director's exercise or nonexercise of a power of direction or further power under paragraph 1 of subsection B of Section 7 of this act to the extent that by complying, the trustee would engage in willful misconduct.

C. An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if:

1. The breach involved the trustee's or other director's willful misconduct;

2. The release was induced by improper conduct of the trustee or other director in procuring the release; or

3. At the time of the release, the trust director did not know the material facts relating to the breach.

D. A directed trustee that has reasonable doubt about its duty under this section may petition the district court for instructions.

E. The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section. Added by Laws 2024, c. 369, § 10, eff. Nov. 1, 2024.