72-34-515. Discharge of trustee's liability by release or contract.
72-34-515. Discharge of trustee's liability by release or contract. (1) Except as provided in subsection (2), a beneficiary may be precluded from holding the trustee liable for a breach of trust by the beneficiary's release or contract effective to discharge the trustee's liability to the beneficiary for that breach.
(2) A release or contract is not effective to discharge the trustee's liability for a breach of trust in any of the following circumstances:
(a) whenever the beneficiary was under an incapacity at the time of making the release or contract;
(b) whenever the beneficiary did not know of the beneficiary's rights and of the material facts:
(i) that the trustee knew or reasonably should have known; and
(ii) that the trustee did not reasonably believe that the beneficiary knew;
(c) whenever the release or contract of the beneficiary was induced by improper conduct of the trustee; or
(d) whenever the transaction involved a bargain with the trustee that was not fair and reasonable.
History: En. Sec. 163, Ch. 685, L. 1989; amd. Sec. 2484, Ch. 56, L. 2009.