This text of Iowa § 633A.4802 (Liability limits of excluded fiduciary) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.An excluded fiduciary is not liable, either individually or as a fiduciary, for any of the
following:
a.Any loss that results from compliance with a direction of the trust director, including
any loss from the trust director breaching fiduciary responsibilities or acting beyond the trust
director’s scope of authority.
b.Anylossthatresultsfromafailuretotakeanyactionproposedbyanexcludedfiduciary
that requires prior authorization of the trust director if that excluded fiduciary timely sought
but failed to obtain that authorization.
c.Any loss that results from any action or inaction of the excluded fiduciary, except for
gross negligence or willful misconduct, when the excluded fiduciary is required, pursuant to
the trust agreement or any other reason, to assume the role of trust directo
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1. An excluded fiduciary is not liable, either individually or as a fiduciary, for any of the
following:
a. Any loss that results from compliance with a direction of the trust director, including
any loss from the trust director breaching fiduciary responsibilities or acting beyond the trust
director’s scope of authority.
b. Anylossthatresultsfromafailuretotakeanyactionproposedbyanexcludedfiduciary
that requires prior authorization of the trust director if that excluded fiduciary timely sought
but failed to obtain that authorization.
c. Any loss that results from any action or inaction of the excluded fiduciary, except for
gross negligence or willful misconduct, when the excluded fiduciary is required, pursuant to
the trust agreement or any other reason, to assume the role of trust director or trust protector.
2. An excluded fiduciary is relieved of any obligation to review or evaluate any
direction from a trust director or to perform investment or suitability reviews, inquiries, or
investigations or to make recommendations or evaluations with respect to any investments to
the extent the trust director had authority to direct the acquisition, disposition, or retention
of the investment. If the excluded fiduciary offers recommendations or evaluations with
respect to any investments to the trust director, trust protector, or any investment advisor
selected by the investment trust director, such action may not be deemed to constitute an
undertaking by the excluded fiduciary to monitor or otherwise participate in actions within
the scope of the trust director’s authority or to constitute any duty to do so.
3. An excluded fiduciary is relieved of any duty to communicate with, warn, or apprise
any beneficiary or third party concerning instances in which the excluded fiduciary may have
exercised the excluded fiduciary’s own discretion in a manner different from the manner
directed by the trust director or trust protector.
4. Absent contrary provisions in the governing instrument, the actions of the excluded
fiduciary pertaining to matters within the scope of authority of the trust director or trust
protector shall be deemed to be administrative actions taken by the excluded fiduciary solely
to allow the excluded fiduciary to perform those duties assigned to the excluded fiduciary
under the governing instrument, and such administrative actions shall not be deemed to
constitute an undertaking by the excluded fiduciary to monitor, participate, or otherwise
take on any fiduciary responsibility for actions within the scope of authority of the trust
director or trust protector. For purposes of this subsection,“administrative actions” shall
include communications with the trust director or others and carrying out, recording, or
reporting actions taken at the trust director’s direction.
5. In an action against an excluded fiduciary pursuant to the provisions of this section,
45 IOWA TRUST CODE, §633A.4806
the burden to prove the matter by clear and convincing evidence is on the person seeking to
hold the excluded fiduciary liable.