Virginia Code 64.2-779.32: Duty and liability of directed trustee.
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 subdivision B 1 of § 64.2-779.29, and the trustee is not liable for the action.
Terms Used In Virginia Code 64.2-779.32
- Breach of trust: includes a violation by a trust director or trustee of a duty imposed on that trust director or trustee by the terms of the trust, this article, or law of the Commonwealth other than this article pertaining to trusts. See Virginia Code 64.2-779.26
- Court: means the court of the Commonwealth having jurisdiction in matters related to trusts. See Virginia Code 64.2-701
- Directed trustee: means a trustee that is subject to a trust director's power of direction. See Virginia Code 64.2-701
- 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 Virginia Code 64.2-701
- Terms of a trust: means :
1. See Virginia Code 64.2-701
- 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 Virginia Code 64.2-701
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee and a cotrustee. See Virginia Code 64.2-701
B. A directed trustee must not comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision B 1 of § 64.2-779.29 to the extent that by complying the trustee would engage in willful misconduct.
C. 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:
1. The breach involved the trustee’s or other trust director’s willful misconduct;
2. The release was induced by improper conduct of the trustee or other trust director in procuring that release; or
3. At the time of the release, the trust director did not know the material facts relating to the breach.
D. A directed trustee that has reasonable doubt about its 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.
2020, c. 768.