(Liability of Beneficiary)(a) A beneficiary is liable for loss to the trust estate if he has:(1) misappropriated or otherwise wrongfully dealt with the trust property;(2) expressly consented to, participated in or agreed with the trustee to be liable for a breach of trust committed by the trustee;(3) failed to repay an advance or loan of trust funds;(4) failed to repay a distribution or disbursement from the trust estate in excess of that to which he is entitled; or(5) breached a contract to pay money or deliver property to the trustee to be held by the trustee as part of the trust estate.(b) Unless the terms of the trust provide otherwise a beneficiary of a trust is liable to the extent of his interest in the trust estate for the amount of any debt owed the trust estate by him.Formerly: Acts 1971, P.L.416, SEC.4.
Indiana Legal Code