Montana Code 72-38-1011. Interest as general partner
72-38-1011. Interest as general partner. (1) Unless personal liability is imposed in the contract, a trustee who in the trustee‘s fiduciary capacity holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust’s acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Montana Uniform Partnership Act or the Montana Uniform Limited Partnership Act. The addition of the phrase “trustee” or “as trustee” or a similar designation to the signature of a trustee on a written contract is satisfactory disclosure of the fiduciary capacity.
Terms Used In Montana Code 72-38-1011
- Contract: A legal written agreement that becomes binding when signed.
- Fiduciary: A trustee, executor, or administrator.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Settlor: means a person, including a testator, who creates or contributes property to a trust. See Montana Code 72-38-103
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee and a cotrustee. See Montana Code 72-38-103
(2)A trustee who, in the trustee’s fiduciary capacity, holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest, but this does not affect the liability of the trustee for the trustee’s own negligence, wrongful act, or misconduct.
(3)If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.