72-38-133. Objection to proposed action or inaction -- petition -- liability of trustee. (1) A qualified beneficiary may object to the proposed action or inaction by providing a written objection to the trustee at the address stated in the notice of proposed action or notice of proposed inaction within the time period specified in the notice of proposed action or notice of proposed inaction. The written objection may take any form reasonably calculated to communicate the objection but need not give any reason for the objection.

(2) Except as provided in subsection (3), a trustee is not liable to a qualified beneficiary for an action or inaction regarding a matter governed by this part if the trustee does not receive a written objection to the proposed action or inaction from the qualified beneficiary within the applicable period and the other requirements of this part are satisfied. Except as provided in subsection (3), if no qualified beneficiary objects under this section, the trustee is not liable to any qualified beneficiary with respect to the proposed action or inaction. This section does not apply to an unborn or minor child or an incapacitated adult unless notice of the proposed action is provided to an appropriate representative pursuant to 72-38-303.

(3) The failure of a qualified beneficiary to object does not preclude the qualified beneficiary from holding the trustee liable for a breach of trust in any of the following circumstances:

(a) if the qualified beneficiary at the time of the qualified beneficiary's failure to object did not have notice of the proposed action as prescribed in 72-38-130 through 72-38-134; or

(b) if the qualified beneficiary's failure to object was induced by improper conduct of the trustee.

(4) If the trustee receives a written objection to a notice of proposed action within the applicable period, either the trustee or a qualified beneficiary may petition the court to have the proposed action taken as proposed, taken with modifications, or denied. In the proceeding, the trustee has the burden of proving that the trustee's proposed action should be taken. A qualified beneficiary who has not objected is not estopped from opposing the proposed action in the proceeding.

(5) If the trustee decides not to implement the proposed action, the trustee shall notify the qualified beneficiaries of the decision not to take the action and the reasons for the decision, and the trustee's decision not to implement the proposed action does not itself give rise to liability to any beneficiary. A qualified beneficiary may petition the court to have the action taken, and the qualified beneficiary has the burden of proving that it should be taken.

(6) If the trustee receives a written objection to a notice of proposed inaction within the applicable period, either the trustee or a qualified beneficiary may petition the court to approve the proposed inaction. In the proceeding, the trustee has the burden of proving that the trustee should not act. A qualified beneficiary who has not objected is not estopped from opposing the proposed inaction in the proceeding.

(7) If after providing a notice of proposed inaction, the trustee decides to act, the trustee shall notify the qualified beneficiaries of the decision to act and the reasons for the decision, and the trustee's decision does not itself give rise to liability to any beneficiary. A qualified beneficiary may petition the court to direct the trustee not to act, and the qualified beneficiary has the burden of proof.