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Effective Jan 1, 2024Added by Stats. 2023, Ch. 721, Sec. 3. (SB 801) Effective January 1, 2024.
- (a) Subject to subdivision (b), 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) of Section 16608, and the trustee is not liable for the action.
- (b) A directed trustee shall not comply with a trust director’s exercise or nonexercise of a power of direction or further power under subdivision (b) of Section 16608 to the extent that, by complying, the trustee would engage in willful misconduct.
(c) 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 any of the following is true:
- (1) The breach involved the trustee’s or other trust director’s willful misconduct.
- (2) The release was induced by improper conduct of the trustee or other trust director in procuring the release.
- (3) At the time of the release, the trust director did not know the material facts relating to the breach.
- (d) A directed trustee that has reasonable doubt about their duty under this section may petition the court for instructions.
- (e) 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.