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