§ 15-5-1012 — Protection of person dealing with trustee

(1) 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 were properly exercising the power.

(2) 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 and, in the absence of contrary knowledge, may assume the
existence and proper use of the power being exercised.

(3) A person who in good faith delivers assets to a trustee need not ensure
their proper application.

(4) 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.

(5) Comparable protective provisions of other laws relating to commercial
transactions or transfer of securities by fiduciaries prevail over the protection
provided by this section.

Legislative History

Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1188, � 1, effective January 1, 2019.