Ark. Code Ann. § 28-73-1008

Exculpation of trustee

Known as the Arkansas Trust Code

The act spans §§ 28-73-1001 to 28-73-908 (103 sections).

Applied in 1 court decision — leading case 2024 Ark. App. 6 - Ashley Jacks, Individually and as parent/legal Custodian to Minor Beneficiaries, Paris Ludwig and Bayli Ludwig, of the Havis L. Jacks Revocable Trust v. Sandra Brossett, Individually, as of the Last Will and Testament of Havis L. Jacks, and as Trustee of the Havis L. Jacks Revocable Trust (2024)

Most recently applied in 2024 Ark. App. 6 - Ashley Jacks, Individually and as parent/legal Custodian to Minor Beneficiaries, Paris Ludwig and Bayli Ludwig, of the Havis L. Jacks Revocable Trust v. Sandra Brossett, Individually, as of the Last Will and Testament of Havis L. Jacks, and as Trustee of the Havis L. Jacks Revocable Trust (January 2024)

Acts 2005, No. 1031, § 1.

(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: 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.

(3) 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.

(4) This section applies only to irrevocable trusts created on or after September 1, 2005, and to revocable trusts which become irrevocable on or after September 1, 2005.

Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.