633.4506  Beneficiary's consent, release, or affirmance--nonliability of trustee.

1.  A beneficiary shall not hold a trustee liable for a breach of trust if the beneficiary does any of the following:

a.  Consents to the conduct constituting the breach.

b.  Releases the trustee from liability for the breach.

c.  Affirms the transaction constituting the breach.

2.  Notwithstanding the provisions of subsection 1, a beneficiary may hold a trustee liable for breach of trust under either of the following circumstances:

a.  The beneficiary at the time of the consent, release, or affirmance did not know of the beneficiary's rights and of the material facts the trustee knew or should have known and the trustee did not reasonably believe that the beneficiary knew.

b.  The consent, release, or affirmance of the beneficiary was induced by improper conduct of the trustee.

Section History: Recent form

  99 Acts, ch 125, §78, 109

Internal References

  Referred to in § 633.4202


  Section effective July 1, 2000; 99 Acts, ch 125, §109

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