The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 14A V.S.A. § 1008)
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§ 1008. Exculpation of trustee
(a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable
to the extent that it:
(1) 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.
(b) 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. (Added 2009, No. 20, § 1.)