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0 tracked cards Supplemental - Not MEE July 2026

A trust instrument states, "Trustee is not liable for mistakes in judgment made in good faith." Trustee later intentionally hides a conflict of interest and transfers trust assets to a business Trustee owns. Beneficiaries sue for breach of trust.
Which statement is most accurate?

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The clause protects the trustee only if the trustee is unpaid. The clause bars liability for all trustee conduct, including bad faith and intentional misconduct. The clause converts all beneficiary claims into contract claims against the settlor. The clause may protect ordinary good-faith mistakes but generally will not protect bad faith, reckless indifference, or intentional misconduct.

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