§ 15-16-809 — Duty and liability of directed trustee

Colorado § 15-16-809

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Trust Administration

Text

(1) Subject to subsection
(2) of this section, 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 15-16-806 (2)(a), and the trustee is not liable for the action.

(2) A directed trustee must not comply with a trust director's exercise or
nonexercise of a power of direction or further power under section 15-16-806 (2)(a)
to the extent that by complying the trustee would engage in willful misconduct.

(3) 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:

(a) The breach involved the trustee's or other director's willful misconduct;

(b) The release was induced by improper conduct of the trustee or other
director in procuring the release; or

(c) At the time of the release, the director did not know the material facts
relating to the breach.

(4) A directed trustee that has reasonable doubt about its duty under this
section may petition the court for instructions.

(5) 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.

Legislative History

Source: L. 2019: Entire part R&RE, (SB 19-105), ch. 51, p. 170, � 1, effective August 2.