§ 1012.
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/vt/1012A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 1012. Protection of person dealing with trustee
(a)A person other than a beneficiary who in good faith assists a trustee or who in good faith and for value deals with a trustee without knowledge that the trustee is exceeding or improperly exercising the trustee’s powers is protected from liability as if the trustee properly exercised the power.
(b)A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee’s powers or the propriety of their exercise.
(c)A person who in good faith delivers assets to a trustee need not ensure their proper application.
(d)A person other than a beneficiary who in good faith assists a former trustee or who in good faith and for value deals with a former trustee without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(e)Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section. (Added 2009, No. 20, § 1.)