Exculpation of trustee

15-5-1008. Exculpation of trustee. (1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (a) 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 (b) Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor. (2) 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. Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1185, � 1, effective January 1, 2019.