14-11001. Remedies for breach of trust A. A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. B. Except as provided in section 14-7404, to remedy a breach of trust that has occurred or may occur, the court may: 1. Compel the trustee to perform the […]
14-11002. Damages for breach of trust A. Except as provided in section 14-7404, a trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of either: 1. The amount required to restore the value of the trust property and trust distributions to what they would have been had the […]
14-11003. Damages in absence of breach A. Except as provided in section 14-7404, a trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust. For the purposes of this subsection, profit does not include: 1. Reasonable compensation to […]
14-11004. Attorney fees and costs A. A trustee or a person who is nominated as a trustee is entitled to reimbursement from the trust for that person’s reasonable fees, expenses and disbursement, including attorney fees and costs, that arise out of and that relate to the good faith defense or prosecution of a judicial or […]
14-11005. Limitation of action against trustee A. A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed […]
14-11006. Reliance on trust instrument A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.
14-11007. Event affecting administration or distribution If the happening of an event, including marriage, divorce, performance of educational requirements or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee’s lack of […]
14-11008. Exculpation of trustee A. A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it either: 1. Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of […]
14-11009. Beneficiary’s consent, release or ratification A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach or ratified the transaction constituting the breach, unless either: 1. The consent, release or ratification of the beneficiary was […]
14-11010. Limitation on personal liability of trustee A. Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee’s fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity. B. A trustee is personally liable […]
14-11011. Interest as general partner A. Except to the extent that personal liability is imposed in the contract, a trustee who 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 […]
14-11012. Protection of person dealing with trustee A. A person other than a beneficiary who in good faith assists a trustee or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee’s powers, is protected from liability as if the trustee properly […]
14-11013. Certification of trust A. Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: 1. That the trust exists and the date the trust instrument was executed. 2. The identity of the settlor. […]
14-11014. Total return trusts; definitions A. A trustee, other than an interested trustee, or if two or more persons are acting as trustee, a majority of the trustees who are not an interested trustee, in its sole discretion and without the approval of the court may: 1. Convert an income trust to a total return […]
14-11015. Express total return unitrusts; definition A. A unitrust amount may be determined by reference to the net fair market value of the trust’s assets in one year or more than one year. B. Distribution of a fixed percentage unitrust amount is considered a distribution of all of the income of the total return unitrust […]
