§2109. Duty and liability of directed trustee

(CONTAINS TEXT WITH VARYING EFFECTIVE DATES)

(WHOLE SECTION TEXT EFFECTIVE 1/1/20 by T. 18-B, §2119)

1.  Reasonable action to comply.  Subject to subsection 2, 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 section 2106, subsection 2, paragraph A, and the trustee is not liable for the action.

[PL 2019, c. 301, §8 (NEW).]

2.  No compliance if willful misconduct.  A directed trustee may not comply with a trust director's exercise or nonexercise of a power of direction or further power under section 2106, subsection 2, paragraph A to the extent that by complying the trustee would engage in willful misconduct.

[PL 2019, c. 301, §8 (NEW).]

3.  Release from liability not effective.  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:

A. The breach involved the trustee's or other director's willful misconduct;   [PL 2019, c. 301, §8 (NEW).]

B. The release was induced by improper conduct of the trustee or other director in procuring the release; or   [PL 2019, c. 301, §8 (NEW).]

C. At the time of the release, the director did not know the material facts relating to the breach.   [PL 2019, c. 301, §8 (NEW).]

[PL 2019, c. 301, §8 (NEW).]

4.  Petition court for instructions.  A directed trustee that has reasonable doubt about its duty under this section may petition the Probate Court or the Superior Court for instructions.

[PL 2019, c. 301, §8 (NEW).]

5.  Additional duty or liability.  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.

[PL 2019, c. 301, §8 (NEW).]

SECTION HISTORY

PL 2019, c. 301, §8 (NEW).