§ 7-2.1. Extent of trustee's estate.
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§ 7-2.1 Extent of trustee's estate
(a)Except as otherwise provided in this article, an express trust
vests in the trustee the legal estate, subject only to the execution of
the trust, and the beneficiary does not take any legal estate in the
property but may enforce the trust.
(b)This section does not prevent the creator of a trust from
providing to whom the property shall belong in the event of the failure
or termination of the trust or from disposing of the property subject to
the execution of the trust. Such a transferee shall have a legal estate
in the property as against all persons except the trustee and those
lawfully claiming under him.
(c)A trust as described in sections 9-1.5, 9-1.6 and 9-1.7 of the
estates, powers and trusts law, including a business trust as defined in
subdivision two of section two of the general associations law, may
acquire property in the name of the trust as such name is designated in
the instrument creating said trust. Any property, so acquired can be
conveyed, encumbered or otherwise disposed of only in such name by a
conveyance, encumbrance or other instrument executed by:
(1)the person or persons authorized by the instrument creating said
trust; or
(2)the person or persons authorized by a resolution duly adopted by
the trustees; or
(3)a majority of the trustees unless the instrument creating said
trust otherwise provides.
Any instrument of conveyance, encumbrance or disposition delivered
prior to the effective date of this section to or by a trust to which
this section applies, in its trust name is hereby validated provided
that no action or proceeding to cancel or disaffirm it shall be
instituted within one year from the effective date hereof, but nothing
herein contained shall affect any such pending action or proceeding.