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Code · Vermont · Vermont Statutes

§ 1309.

239 words·~1 min read·/vt/1309

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§ 1309. Duty and liability of directed 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 subdivision 1306(b)(1) of this title, and the trustee is not liable for the action.
(b)A directed trustee shall not comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision 1306(b)(1) of this title to the extent that by complying the trustee would engage in intentional 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 intentional 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 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 Probate Division of the Superior 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 2023, No. 104 (Adj. Sess.), § 1, eff. May 13, 2024.)
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