75-7-1012 - Protection of person dealing with trustee.
75-7-1012. Protection of person dealing with trustee.
(1) A person other than a beneficiary who in good faith assists a trustee, or who in goodfaith and for value deals with a trustee, without knowledge that the trustee is exceeding orimproperly exercising the trustee's powers is protected from liability as if the trustee properlyexercised the power.
(2) A person other than a beneficiary who in good faith deals with a trustee is notrequired to inquire into the extent of the trustee's powers or the propriety of their exercise.
(3) A person who in good faith delivers assets to a trustee need not ensure their properapplication.
(4) A person other than a beneficiary who in good faith assists a former trustee, or who ingood faith and for value deals with a former trustee, without knowledge that the trusteeship hasterminated is protected from liability as if the former trustee were still a trustee.
(5) Comparable protective provisions of other laws relating to commercial transactionsor transfer of securities by fiduciaries prevail over the protection provided by this section.
Enacted by Chapter 89, 2004 General Session