2020 Colorado Revised Statutes
Title 15 - Probate, Trusts, And Fiduciaries
Article 16. Trust Administration
Section 15-16-809. Duty and liability of directed trustee.
(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.
A directed trustee must not comply with a trust director's exercise or nonexercise of a powerof direction or further power under section 15-16-806 (2)(a) to the extent that by complying the trustee would engage in willful misconduct.
An exercise of a power of direction under which a trust director may release a trustee oranother trust director from liability for breach of trust is not effective if:
The breach involved the trustee's or other director's willful misconduct;
The release was induced by improper conduct of the trustee or other director in procuring therelease; or
At the time of the release, the director did not know the material facts relating to the breach.
A directed trustee that has reasonable doubt about its duty under this section may petition thecourt for instructions.
The terms of a trust may impose a duty or liability on a directed trustee in addition to theduties and liabilities under this section.
Source: L. 2019: Entire part R&RE, (SB 19-105), ch. 51, p. 170, § 1, effective August 2.
