Kentucky Revised Statutes · § 386B.12-080 — Duty and liability of directed trustee

(1) Subject to subsection (2) of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under KRS 386B.12-050(2)(a), and the trustee is not liable for the action.

(2) A directed trustee shall not comply with a trust director's exercise or nonexercise of a power of direction or further power under KRS 386B.12-050 to the extent that by complying, the trustee would engage in willful misconduct.

(3) An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if:

(a) The breach involved the trustee's or other director's willful misconduct;

(b) The release was induced by improper conduct of the trustee or other director in procuring the release; or

(c) At the time of the release, the director did not know the material facts relating to the breach.

(4) A directed trustee that has reasonable doubt about its duty under this section may petition a court with jurisdiction under Subchapter 2 of KRS Chapter 386B for instructions.

(5) The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section.