Added 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.
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