Sec. 9. (a) Subject to subsection (b), 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 6(b)(1) of this chapter, and the
trustee is not liable for the action.
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Terms Used In Indiana Code 30-4-9-9
- Breach of trust: includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, this chapter, or the law of this state other than this chapter. See Indiana Code 30-4-9-2
- Court: means a court having jurisdiction over trust matters. See Indiana Code 30-4-1-2
- Directed trustee: means a trustee that is subject to a trust director's power of direction. See Indiana Code 30-4-9-2
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- Power of direction: means a power over a trust granted to a person by the terms of the trust to the extent the power is exercisable while the person is not serving as a trustee. See Indiana Code 30-4-9-2
- Terms of a trust: means :
Indiana Code 30-4-9-2
- Trust director: means a person that is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee. See Indiana Code 30-4-9-2
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee, and a cotrustee. See Indiana Code 30-4-9-2
- Willful misconduct: means intentional wrongdoing, and not mere negligence, gross negligence, or recklessness. See Indiana Code 30-4-9-2
(c) An exercise of 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 willful 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 the directed trustee’s duty under this section may petition the 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.
As added by P.L.221-2019, SEC.10.
