35-15-1008 - Exculpation of trustee. - Tennessee Statutes

35-15-1008. Exculpation of trustee.

(a)  A provision of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:

     (1)  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

     (2)  Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.

(b)  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.

[Acts 2004, ch. 537, § 84.]