§ 30-4-3-19 — Relief of trustee's liability for breach of trust

(Relief of Trustee's Liability for Breach of
Trust)
(a) Unless the terms of the trust provide otherwise or unless if to do
so would frustrate, impair or defeat the purposes of the trust, a
beneficiary, except as provided in subsection (b) of this section,
relieves the trustee from liability for breach of trust as to that
beneficiary's interest if he:
(1) consents to or acquiesces in the act or omission which
constitutes a breach of trust;
(2) agrees to release or discharge the trustee from liability for breach
of trust after the act or omission constituting the breach occurs;
(3) elects, under an option to affirm or reject a transaction entered
into as a breach of trust, to affirm the transaction; or
(4) participates in the act of the trustee which constitutes the breach
of trust.
(b) The consent, acquiescence, agreement to release or discharge,
affirmance, or participation by a beneficiary will not relieve the trustee
from liability if:
(1) at the time it was given the beneficiary was under an incapacity;
(2) at the time it was given the beneficiary did not know of his rights
or all of the material facts which the trustee knew or should have
known;
(3) it was induced by the trustee's improper conduct;
(4) the trustee had an adverse interest in the transaction and the
transaction was not fair and reasonable; or
(5) the trustee pays or delivers a beneficiary's interest to that
beneficiary contrary to the terms of a trust with protective provisions.
Formerly: Acts 1971, P.L.416, SEC.4.