(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.
(Mar. 10, 2004, D.C. Law 15-104, § 2(b), 51 DCR 208.)
This section is referenced in § 19-1308.02 and § 19-1310.01.
Uniform Law: This section is based upon § 1012 of the Uniform Trust Code.
Structure District of Columbia Code
Title 19 - Descent, Distribution, and Trusts. [Enacted title]
Chapter 13 - Uniform Trust Code
Subchapter X - Liability of Trustees and Rights of Persons Dealing with Trustee
§ 19–1310.01. Remedies for breach of trust
§ 19–1310.02. Damages for breach of trust
§ 19–1310.03. Damages in absence of breach
§ 19–1310.04. Attorney’s fees and costs
§ 19–1310.05. Limitation of action against trustee
§ 19–1310.06. Reliance on trust instrument
§ 19–1310.07. Event affecting administration or distribution
§ 19–1310.08. Exculpation of trustee
§ 19–1310.09. Beneficiary’s consent, release, or ratification
§ 19–1310.10. Limitation on personal liability of trustee
§ 19–1310.11. Interest as general partner