72-34-504. Trustee's liability to beneficiary for acts of predecessor. - Montana Statutes

     72-34-504. Trustee's liability to beneficiary for acts of predecessor. (1) Except as provided in subsection (2), a successor trustee is not liable to the beneficiary for a breach of trust committed by a predecessor trustee.
     (2) A successor trustee is liable to the beneficiary for breach of trust involving acts or omissions of a predecessor trustee in any of the following circumstances:
     (a) whenever the successor trustee knows or has information from which the successor trustee reasonably should have known of a situation constituting a breach of trust committed by the predecessor trustee, and the successor trustee improperly permits it to continue;
     (b) whenever the successor trustee neglects to take reasonable steps to compel the predecessor trustee to deliver the trust property to the successor trustee; or
     (c) whenever the successor trustee neglects to take reasonable steps to redress a breach of trust committed by the predecessor trustee in a case where the successor trustee knows or has information from which the successor trustee should have known of the predecessor trustee's breach.
     (3) The liability of a trustee for acts or omissions of a predecessor trustee that occurred before October 1, 1989, is governed by prior law and not by this section.

     History: En. Sec. 154, Ch. 685, L. 1989.