Section 1216 - Relief from liability and indemnification1.Liability for breach of trust. Except as otherwise provided in this section, a 2nd-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument does.[2021, c. 235, §1(NEW).]
2.Indemnification for claim otherwise payable. A 2nd-trust instrument may provide for indemnification of an authorized fiduciary of the first 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.[2021, c. 235, §1(NEW).]
3.No reduction in liability in aggregate. A 2nd-trust instrument may not reduce fiduciary liability in the aggregate.[2021, c. 235, §1(NEW).]
4.Division and reallocation of fiduciary powers; relief from fiduciary liability. Subject to subsection 3, a 2nd-trust instrument may divide and reallocate fiduciary 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 a law of this State other than this Act.[2021, c. 235, §1(NEW).]
Added by 2021SP1, c. 235,§ 1, eff. 10/18/2021.