The position of Trustee is a stressful one that carries with it a great amount of fiduciary responsibilities. A trustee can be held personally liable for breaching the fiduciary duties that come with the position. It is common for grantors to include exculpatory clauses that can protect a trustee from potential liability. Grantors may include an exculpatory clause to try to encourage someone to take on the responsibility. Exculpatory clause limits vary from state to state. The Supreme Court in Nebraska has recently invalidated an exculpatory clause in Rafert v. Meyer, holding that the particular clause in question went too far. The Court looked to the Nebraska Uniform Trust Code when it cited to the certain subjects that can limit a Trust’s exculpatory clause.
See Luke Lantta, Limits Of Exculpatory Clauses In Trusts, Bryan Cave LLP, August 12, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
