(a) When exculpatory provision unenforceable.--A term 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) Exculpatory provision by trustee.--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. (July 15, 2024, P.L.786, No.64, eff. 90 days) 2024 Amendment. Act 64 amended subsec. (a) intro. par. See section 11 of Act 64 in the appendix to this title for special provisions relating to Uniform Trust Code. Cross References. Section 7788 is referred to in section 7705 of this title.
Pennsylvania Legal Code