§ 7780.20. Duty and liability of directed trustee - UDTA 9.

291 words·~1 min read·/pa/title-20/chapter-77/7780-20·

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

(a)Duty to comply with power of direction.-- Subject to subsection (b), a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction, and the directed trustee shall not be liable for that action.

(b)Exception for willful misconduct.-- A directed trustee shall not comply with a trust director's exercise or nonexercise of a power of direction to the extent that, by doing so, the directed trustee would engage in willful misconduct.

(c)When release from liability ineffective.-- An exercise of a power of direction under which a trust director purports to release a trustee or another trust director from liability for breach of trust is ineffective:

(1)to the extent that it would relieve the trustee or the other trust director of liability for a breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries;

(2)if the release was induced by improper conduct of the trustee or the other trust director in procuring the release; or

(3)if, at the time of the release, the trust director that exercised the power did not know of the material facts relating to the breach.

(d)Petition for declaratory judgment.-- A directed trustee that has reasonable doubt about its duty under this section may petition the court for a declaratory judgment.

(e)Additional duties and liabilities.-- The terms of the trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities prescribed by this section.

20c7780.20v

Cross References. Section 7780.20 is referred to in sections 7705, 7780.23 of this title.

20c7780.21s