26-5.2 - Liability of fiduciary for actions of cofiduciary. - Virginia Statutes

§ 26-5.2. Liability of fiduciary for actions of cofiduciary.

A. Any power vested in three or more fiduciaries may be exercised by amajority, but a fiduciary who has not joined in exercising a power is notliable to the beneficiaries or to others for the consequences of theexercise. A dissenting fiduciary is not liable for the consequences of an actin which he joins at the direction of the majority of the fiduciaries if heexpressed his dissent in writing to any of his cofiduciaries, if the act isnot of itself a patent breach of trust.

B. A fiduciary shall be answerable and accountable only for his own acts,receipts, neglects or defaults, and not for those of any cofiduciary, nor forany banker, broker, or other person with whom the trust money or securitiesmay be lawfully deposited, nor for any loss unless the same occurs throughhis own default or negligence.

C. Whenever the instrument under which a fiduciary or fiduciaries are actingreserves unto the trustor, testator, or creator or vests in an advisory orinvestment committee or any other person or persons, including a cofiduciary,to the exclusion of the fiduciary or the exclusion of one or more of severalfiduciaries, authority to direct the making or retention of investments, orany investment, the excluded fiduciary or cofiduciary shall be liable, if atall, only as a ministerial agent and shall not be liable as fiduciary orcofiduciary for any loss resulting from the making or retention of anyinvestment pursuant to such authorized direction.

D. This section does not excuse a cofiduciary from liability for failure toparticipate in the administration of trust, or to attempt to prevent a breachof trust, or to seek advice and guidance from the court in an apparentlyrecurring situation unless otherwise expressly provided by the instrumentunder which the cofiduciary is acting.

E. As used in this section, "fiduciary" shall be defined as in § 8.01-2,except that it shall not include trustees subject to the requirements andprovisions of Chapter 31 (§ 55-541.01 et seq.) of Title 55.

(1978, c. 327; 1980, c. 440; 2005, c. 935.)