Section 16461 Of Article 4. Limitations And Exculpation From California Probate Code >> Division 9. >> Part 4. >> Chapter 4. >> Article 4.
16461
. (a) Except as provided in subdivision (b), (c), or (d), the
trustee can be relieved of liability for breach of trust by
provisions in the trust instrument.
(b) A provision in the trust instrument is not effective to
relieve the trustee of liability (1) for breach of trust committed
intentionally, with gross negligence, in bad faith, or with reckless
indifference to the interest of the beneficiary, or (2) for any
profit that the trustee derives from a breach of trust.
(c) Subject to subdivision (b), a provision in a trust instrument
that releases the trustee from liability if a beneficiary fails to
object to an item in an interim or final account or other written
report within a specified time period is effective only if all of the
following conditions are met:
(1) The account or report sets forth the item.
(2) The period specified in the trust instrument for the
beneficiary to object is not less than 180 days, or the trustee
elects to follow the procedure provided in subdivision (d).
(3) Written notice in 12-point boldface type is provided to a
beneficiary with the account or report in the following form:
NOTICE TO BENEFICIARIES
YOU HAVE [insert "180 days" or the period specified in the trust
instrument, whichever is longer] FROM YOUR RECEIPT OF THIS ACCOUNT OR
REPORT TO MAKE AN OBJECTION TO ANY ITEM SET FORTH IN THIS ACCOUNT OR
REPORT. ANY OBJECTION YOU MAKE MUST BE IN WRITING; IT MUST BE
DELIVERED TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE; AND IT MUST
STATE YOUR OBJECTION. YOUR FAILURE TO DELIVER A WRITTEN OBJECTION TO
THE TRUSTEE WITHIN THE PERIOD STATED ABOVE WILL PERMANENTLY PREVENT
YOU FROM LATER ASSERTING THIS OBJECTION AGAINST THE TRUSTEE. IF YOU
DO MAKE AN OBJECTION TO THE TRUSTEE, THE THREE-YEAR PERIOD PROVIDED
IN SECTION 16460 OF THE PROBATE CODE FOR COMMENCEMENT OF LITIGATION
WILL APPLY TO CLAIMS BASED ON YOUR OBJECTION AND WILL BEGIN TO RUN ON
THE DATE THAT YOU RECEIVE THIS ACCOUNT OR REPORT.