Session of 1999
HOUSE BILL No. 2295
By Committee on Financial Institutions
2-5
9 AN ACT relating to trust and trustees; concerning liability of trustee.
10
11 Be it enacted by the Legislature of the State of Kansas:
12 Section 1. (a) Unless otherwise provided by the terms of the con-
13 tract, a trustee is not individually liable on a contract properly entered
14 into in such trustee's fiduciary capacity in the course of administration of
15 the trust, unless such trustee fails to reveal such trustee's fiduciary ca-
16 pacity and identify the trust in the contract.
17 (b) A trustee is individually liable for obligations arising from own-
18 ership or control of the trust assets or for torts committed in the course
19 of administration of the trust only if such trustee is personally at fault.
20 (c) Claims based on contracts entered into by a trustee in such trus-
21 tee's fiduciary capacity, on obligations arising from ownership or control
22 of the trust assets, or on torts committed in the course of trust adminis-
23 tration may be asserted against the trustee by proceeding against the
24 trustee in such trustee's fiduciary capacity, whether or not the trustee is
25 individually liable.
26 (d) Issues of liability as between the trust and the trustee individually
27 may be determined in a proceeding for accounting, surcharge or indem-
28 nification, or other appropriate proceeding.
29 (e) A trustee who is a member of a partnership in such trustee's fi-
30 duciary capacity only is not individually liable for the obligations of the
31 partnership but claims based upon such obligations may be asserted
32 against the trust by proceeding against the trustee in such trustee's fi-
33 duciary capacity.
34 Sec. 2. This act shall take effect and be in force from and after its
35 publication in the statute book.