KRS 386B.10-080: Exculpation of trustee.

(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to

the extent that it:

(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 th e 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 fi duciary 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. The requirements of this subsection

are satisfied if t he settlor was represented by independent counsel at the time the

exculpatory term was drafted or caused to be drafted.