Section 43 — Trusts Act 2019: Adviser must alert settlor to liability exclusion or indemnity clause

43 Adviser must alert settlor to liability exclusion or indemnity clause (1) This section applies if— (a) a person (the adviser ) is paid to— (i) advise on the creation of a trust; or (ii) prepare the terms of a trust; and (b) the adviser recommends that the settlor should, or causes the settlor to, include a liability exclusion or indemnity clause in the terms of the trust. (2) Before the creation of the trust, the adviser must take reasonable steps to ensure that the settlor is aware of the meaning and effect of the clause. (3) The liability exclusion or indemnity clause has no effect with respect to an adviser who is or becomes a trustee of the trust and who is in breach of subsection (2). (4) Failure to comply with subsection (2) does not of itself invalidate the clause (except as provided in subsection (3)). (5) In this section, liability exclusion or indemnity clause means a clause that has the effect of— (a) limiting or excluding the liability of a trustee for breach of trust; or (b) granting a trustee an indemnity against the trust property for the trustee’s liability for breach of trust.