Exculpation of trustee. (1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that the term: (a) 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 (b) Was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor. (2) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless: (a) The settlor is represented by an independent counsel who reviewed the term; or (b) The trustee proves that the exculpatory term is fair under the circumstances and that the terms existence and contents were adequately communicated to the settlor.
‹ Prev All Oregon sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.