Clauses may relieve a trustee of liability for ordinary negligence but cannot excuse bad faith, reckless indifference, or intentional breach. Clauses drafted by the trustee are invalid absent fair disclosure.
Courts construe them narrowly.
Alternative Names:
Trustee Exculpation|Exoneration Clause
Why it Matters?
The abuse-of-relationship limitation invalidates clauses a trustee inserted without fair disclosure, which reaches professional trustees whose form instruments contain exculpation, and the burden rests on the trustee to establish the clause was fair and adequately communicated. Narrow construction also means ambiguous language is read against protection. The clause does not bar removal or denial of compensation even where it limits damages.
Frequently Confused with
Related terms
Frequently asked questions
When is a trustee-drafted clause invalid?
Does the clause prevent removal?
