Chapter 1. Liability Of Trustee To Third Persons of California Probate Code >> Division 9. >> Part 6. >> Chapter 1.
(a) Unless otherwise provided in the contract or in this
chapter, a trustee is not personally liable on a contract properly
entered into in the trustee's fiduciary capacity in the course of
administration of the trust unless the trustee fails to reveal the
trustee's representative capacity or identify the trust in the
contract.
(b) The personal liability of a trustee on a contract entered into
before July 1, 1987, is governed by prior law and not by this
section.
A trustee is personally liable for obligations arising from
ownership or control of trust property only if the trustee is
personally at fault.
A trustee is personally liable for torts committed in the
course of administration of the trust only if the trustee is
personally at fault.
(a) A cotrustee who does not join in exercising a power held
by three or more cotrustees is not liable to third persons for the
consequences of the exercise of the power.
(b) A dissenting cotrustee who joins in an action at the direction
of the majority cotrustees is not liable to third persons for the
action if the dissenting cotrustee expresses the dissent in writing
to any other cotrustee at or before the time the action is taken.
(c) This section does not excuse a cotrustee from liability for
failure to discharge the cotrustee's duties as a trustee.
A claim based on a contract entered into by a trustee in the
trustee's representative capacity, on an obligation arising from
ownership or control of trust property, or on a tort committed in the
course of administration of the trust may be asserted against the
trust by proceeding against the trustee in the trustee's
representative capacity, whether or not the trustee is personally
liable on the claim.
The question of liability as between the trust estate and
the trustee personally may be determined in a proceeding under
Section 17200.