55-550.08 - Exculpation of trustee. - Virginia Statutes

§ 55-550.08. Exculpation of trustee.

A. A term of a trust relieving a trustee of liability for breach of trust isunenforceable to the extent that it:

1. Relieves the trustee of liability for breach of trust committed in badfaith or with reckless indifference to the purposes of the trust or theinterests of the beneficiaries; or

2. Was inserted as the result of an abuse by the trustee of a fiduciary orconfidential relationship to the settlor.

B. An exculpatory term drafted or caused to be drafted by the trustee isinvalid as an abuse of a fiduciary or confidential relationship unless thetrustee proves that the existence and contents of the exculpatory term wereadequately communicated to the settlor.

(2005, c. 935.)