Sec. 10. (Liability to Third Persons)
(a) Unless the terms of the contract or other non-negotiable
obligation expressly provide otherwise, the trustee is not personally
liable on a contract or other non-negotiable obligation with a third
person made by him in the administration of the trust.
(b) When a third person is entitled to compensation for injury
suffered in the course of the administration of the trust:
(1) If the injury is the result of the trustee's personal act or omission
as trustee, the trustee will be personally liable and the injured party will
be entitled to satisfaction of his claim from the trustee's individual
property first and then, to the extent the claim is yet unsatisfied, from
the trust estate.
(2) If the injury is the result of the act or omission of an agent of the
trustee, and the agent was properly selected and supervised and there
was no improper delegation of authority to the agent, the injured party
will be entitled to satisfaction of his claim from the trust estate first and
then, to the extent that the claim is yet unsatisfied, from the trustee's
individual property.
(3) If the injury is the result of the act or omission of the settlor or
his agent, and not that of the trustee or his agent, the injured party will
be entitled to satisfaction of his claim from the trust estate and not from
the trustee's individual property.
(4) The question of ultimate liability as between the trust estate and
the trustee individually, if it is to be determined, shall be determined in
a proceeding for accounting, surcharge or indemnification.
Formerly: Acts 1971, P.L.416, SEC.4.
Notes of Decisions
Donahue v. Watson, 413 N.E.2d 974 (Ind. Ct. App. 1980).
“This principle of law has been codified in our Trust Code, Ind. Code 30-4-3-10(a): “Unless the terms of the contract or other non-negotiable obligation expressly provide otherwise, the trustee is not personally liable on a contract or other non-negotiable obligation with a third…”
LeSEA Inc v. LeSEA Broad. Corp. (N.D. Ind. 2025).
· cites it 2× “] 17 Under Indiana Code § 30-4-3-10(b)(1), third parties like Defendants “are entitled to compensation for injury suffered in the course of the administration of the trust” from a trustee like Lester Sumrall when the “injury is the result of the trustee’s personal act or…”
Marriage of Wendt & Pullen (Cal. Ct. App. 2021).
“” (Ind. Code 30-4-3-10.) There is no decision in either state holding a spendthrift trust is immune from paying debts related to the administration of the trust, and we see no reason for recognizing such an exemption.”
— Ind. Code § 30-4-3-10(a) — 1 case
Donahue v. Watson, 413 N.E.2d 974 (Ind. Ct. App. 1980).
“This principle of law has been codified in our Trust Code, Ind. Code 30-4-3-10(a): “Unless the terms of the contract or other non-negotiable obligation expressly provide otherwise, the trustee is not personally liable on a contract or other non-negotiable obligation with a third…”
— Ind. Code § 30-4-3-10(b)(1) — 2 cases
LeSEA Inc v. LeSEA Broad. Corp. (N.D. Ind. 2025).
“] 17 Under Indiana Code § 30-4-3-10(b)(1), third parties like Defendants “are entitled to compensation for injury suffered in the course of the administration of the trust” from a trustee like Lester Sumrall when the “injury is the result of the trustee’s personal act or…”
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