58a-1008. Exculpation of trustee.
58a-1008
58a-1008. Exculpation of trustee.(a) A term of a trustrelieving a trustee of liability for breach of trust is unenforceableto the extent that it:
(1) Relieves the trustee of liability for breach of trust committed inbad faith or withreckless indifference to the purposes of the trust or the interests of thebeneficiaries; or
(2) was inserted as the result of an abuse by the trustee of a fiduciaryor confidentialrelationship to the settlor.
(b) Anexculpatory term drafted or caused to be drafted by the trustee isinvalid as anabuse of a fiduciary or confidential relationship unless the:
(1) Trustee provesthat the exculpatory termis fair under the circumstances and that its existence and contents wereadequately communicatedto the settlor; or
(2) the settlor was represented by an attorney not employed by the trusteewith respect to the trust and such attorney has reviewed the exculpatory termand provided independent legal advice regarding such term.
History: L. 2002, ch. 133, § 83;L. 2006, ch. 23, § 13; July 1.