2017 Arkansas Code
Title 28 - Wills, Estates, and Fiduciary Relationships
Subtitle 5 - Fiduciary Relationships
Chapter 73 - Arkansas Trust Code
Subchapter 10 - Liability of Trustees and Rights of Persons Dealing With Trustees
§ 28-73-1008. Exculpation of trustee
- (a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:
- (1) relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or
- (2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.
- (b) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.
- (c) This section applies only to irrevocable trusts created on or after September 1, 2005, and to revocable trusts which become irrevocable on or after September 1, 2005.
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