Relief from liability and indemnification.

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(1) Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument.

  1. A second-trust instrument may provide for indemnification of an authorized fiduciary of thefirst trust or another person acting in a fiduciary capacity under the first trust for any liability or claim that would have been payable from the first trust if the decanting power had not been exercised.

  2. A second-trust instrument may not reduce fiduciary liability in the aggregate.

  3. Subject to subsection (3) of this section, a second-trust instrument may divide and reallocatefiduciary powers among fiduciaries, including one or more trustees, distribution advisors, investment advisors, trust protectors, or other persons, and relieve a fiduciary from liability for an act or failure to act of another fiduciary as permitted by law of this state other than this part 9.

Source: L. 2016: Entire part added, (SB 16-085), ch. 228, p. 884, § 1, effective August 10.


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