Section 7-306 Personal liability of trustees to third parties - Massachusetts Statutes

[Text of section added by 2008, 521, Sec. 9 effective July 1, 2011. See 2008, 521, Sec. 44.]

Section 7-306. [Personal Liability of Trustee to Third Parties.]

(a) Unless otherwise provided in the contract, a trustee is not personally liable on contracts properly entered into in the trustee’s fiduciary capacity in the course of administration of the trust estate unless the trustee fails to reveal his representative capacity and identify the trust estate in the contract.

(b) A trustee is not personally liable unless the trustee is personally at fault for either (i) obligations arising from ownership or control of property of the trust estate, or (ii) torts committed in the course of administration of the trust estate.

(c) Claims based on contracts entered into by a trustee in the trustee’s fiduciary capacity, on obligations arising from ownership or control of the trust estate, or on torts committed in the course of trust administration may be asserted against the trust estate by proceeding against the trustee in a fiduciary capacity, whether or not the trustee is personally liable therefor.

(d) The question of liability as between the trust estate and the trustee individually may be determined in a proceeding for accounting, surcharge or indemnification or other appropriate proceeding.