2005 Montana Code Annotated - 72-34-503 — Trustee\'s liability to beneficiary for acts of cotrustee.

     72-34-503. Trustee's liability to beneficiary for acts of cotrustee. (1) Except as provided in subsection (2), a trustee is not liable to the beneficiary for a breach of trust committed by a cotrustee.
     (2) A trustee is liable to the beneficiary for a breach committed by a cotrustee under any of the following circumstances:
     (a) whenever the trustee participates in a breach of trust committed by the cotrustee;
     (b) whenever the trustee improperly delegates the administration of the trust to the cotrustee;
     (c) whenever the trustee approves, knowingly acquiesces in, or conceals a breach of trust committed by the cotrustee;
     (d) whenever the trustee negligently enables the cotrustee to commit a breach of trust; or
     (e) whenever the trustee neglects to take reasonable steps to compel the cotrustee to redress a breach of trust in a case where the trustee knows or has information from which the trustee reasonably should have known of the breach.
     (3) The liability of a trustee for acts or omissions of a cotrustee that occurred before October 1, 1989, is governed by prior law and not by this section.

     History: En. Sec. 153, Ch. 685, L. 1989.