Some states by statute have introduced into their trust jurisprudence the concept of the excluded fiduciary: In the case of a trust the terms of which allocate fiduciary functions between the trustee and, say, a trust protector, the trustee is an excluded fiduciary as to those functions that have been allocated elsewhere. South Dakota is just such a state. See SDLC Chap.55-1B. Section 1B-2 of the South Dakota statute is essentially a hold harmless provision on steroids that is clearly intended to all but eliminate any co-fiduciary liability that the excluded fiduciary might otherwise have incident to the protector’s carrying out of his allocated functions. Here is a link to the section:
Source: Residual liability in the trust context of excluded fiduciaries | Charles E. Rounds, Jr. – JDSupra
