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30-4-3-9. Duty of trustee under control of third persons

IN Code § 30-4-3-9 (2019) (N/A)
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Sec. 9. (Duty of Trustee under Control of Third Person)

(a) This section applies to directions given to a trustee before July 1, 2019, by a person who has power under the terms of the trust to direct the trustee.

(b) If the terms of the trust give a person a power to direct the trustee in the administration of the trust and those terms expressly direct the trustee to rely, or relieve the trustee from liability if he does rely, on that person's directions, the trustee may do so and will incur no liability for any loss to the trust estate.

(c) If the terms of the trust give a person a power to direct the trustee in the administration of the trust, except as provided in subsection (b):

(1) if the person holds the power as a fiduciary, the trustee has a duty to refuse to comply with any direction which he knows or should know would constitute a breach of a duty owed by that person as a fiduciary; and

(2) if the person holds the power solely for his own benefit, the trustee may refuse to comply only if the attempted exercise of the power violates the terms of the trust with respect to that power.

Formerly: Acts 1971, P.L.416, SEC.4. As amended by P.L.221-2019, SEC.4; P.L.231-2019, SEC.25.

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