Montana Code Annotated
Part 1. General Provisions
72-40-113. Duty and liability of directed trustee

72-40-113. Duty and liability of directed trustee. (1) Subject to subsection (2), 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 72-40-110(2)(a), and the trustee is not liable for the action.
(2) A directed trustee may not comply with a trust director's exercise or nonexercise of a power of direction or further power under 72-40-110(2)(a) to the extent that by complying the trustee would engage in willful misconduct.
(3) 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:
(a) the breach involved the trustee's or other director's willful misconduct;
(b) the release was induced by improper conduct of the trustee or other director in procuring the release; or
(c) at the time of the release, the director did not know the material facts relating to the breach.
(4) A directed trustee that has reasonable doubt about its duty under this section may petition the court for instructions.
(5) 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.
History: En. Sec. 9, Ch. 325, L. 2021.

Structure Montana Code Annotated