Protection of person dealing with trustee.
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. 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. A person who in good faith delivers assets to a trustee need not ensure their proper application. 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. Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
Annotations
Mar. 10, 2004, D.C. Law 15-104, § 2(b), 51 DCR 208 Uniform Law: This section is based upon § 1012 of the Uniform Trust Code. This section is referenced in § 19-1308.02 and § 19-1310.01.
Sourced from the DC Council Open Law Library (public domain).
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