36C-10-1012. 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.
(f) A person is not required to obtain a certification under G.S. 36C-10-1013 in order to be entitled to the protections of this section. (2005-192, s. 2.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 36C - North Carolina Uniform Trust Code
Article 10 - Liability of Trustees and Rights of Persons Dealing with Trustees.
§ 36C-10-1001 - Remedies for breach of trust.
§ 36C-10-1002 - Damages for breach of trust.
§ 36C-10-1003 - Liability in absence of breach.
§ 36C-10-1004 - Attorneys' fees and costs.
§ 36C-10-1005 - Limitation of action against trustee.
§ 36C-10-1006 - Reliance on trust instrument.
§ 36C-10-1007 - Event affecting administration or distribution.
§ 36C-10-1008 - Exculpation of trustee.
§ 36C-10-1009 - Beneficiary's consent, release, or ratification.
§ 36C-10-1010 - Limitation on personal liability of trustee.
§ 36C-10-1011 - Interest as general partner.