§ 30-4309 — (UDTA 9) Duty and liability of directed trustee

Nebraska § 30-4309

• Jurisdiction: Nebraska
• Ch. 30: Decedents' Estates; Protection of Persons and Property

Text

(UDTA 9) (a) Subject to subsections (b) and (c) 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 subdivision (b)(1) of section 30-4306 , and the trustee is not liable for the action.
(b) A directed trustee must not comply with a trust director's exercise or nonexercise of a power of direction or further power under subdivision (b)(1) of section 30-4306 to the extent that by complying the trustee would engage in willful misconduct.
(c) A directed trustee must determine that the trust director's exercise of power of direction under subsection (a) of section 30-4306 or appropriation of further power under subsection (b) of section 30-4306 is granted by the terms of the trust pursuant to subsection (c) of section 30-4306 .
(d) 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:
(1) the breach involved the trustee's or other director's willful misconduct;
(2) the release was induced by improper conduct of the trustee or other director in procuring the release; or
(3) at the time of the release, the director did not know the material facts relating to the breach.
(e) A directed trustee that has reasonable doubt about its duty under this section may petition the court for instructions.
(f) 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: Laws 2019, LB536, § 9.