Section 4-10-1005 – Limitation of Action Against Fiduciary.
4-10-1005. Limitation of action against fiduciary. (a) A beneficiary may not commence a proceeding against a fiduciary for breach of trust more than two (2) years after the date the beneficiary or a representative of the beneficiary received a report that adequately disclosed the existence of a potential claim for breach of trust and informed […]
Section 4-10-1006 – Reliance on Trust Instrument.
4-10-1006. Reliance on trust instrument. A fiduciary 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.
Section 4-10-1007 – Event Affecting Administration or Distribution.
4-10-1007. 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 fiduciary who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the fiduciary’s lack of […]
Section 4-10-1008 – Exculpation of Fiduciaries.
4-10-1008. Exculpation of fiduciaries. (a) A term of a trust relieving a fiduciary of liability for breach of trust is unenforceable to the extent that it: (i) Relieves the fiduciary of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the […]
Section 4-10-1002 – Damages for Breach of Trust.
4-10-1002. Damages for breach of trust. (a) A fiduciary who commits a breach of trust is liable to the beneficiaries affected for the greater of: (i) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (ii) The profit […]
Section 4-10-1003 – Damages in Absence of Breach.
4-10-1003. Damages in absence of breach. (a) A fiduciary is accountable to an affected beneficiary for any profit made by the fiduciary arising from the administration of the trust, even absent a breach of trust. (b) Absent a breach of trust, a fiduciary is not liable to a beneficiary for a loss or depreciation in […]
Section 4-10-906 – Impartiality.
4-10-906. Impartiality. If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
Section 4-10-907 – Investment Costs.
4-10-907. Investment costs. In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust, and the skills of the trustee.
Section 4-10-908 – Reviewing Compliance.
4-10-908. Reviewing compliance. Compliance with the prudent investor rule under this article is determined in light of the facts and circumstances existing at the time of a trustee’s decision or action and not by hindsight.
Section 4-10-909 – Delegation of Investment and Management Functions.
4-10-909. Delegation of investment and management functions. (a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill and caution in: (i) Selecting an agent; (ii) Establishing the scope and terms of the delegation, consistent with the […]