55-550.12 - Protection of person dealing with trustee. - Virginia Statutes

§ 55-550.12. Protection of person dealing with trustee.

A. A person other than a beneficiary who in good faith assists a trustee, orwho in good faith and for value deals with a trustee, without knowledge thatthe trustee is exceeding or improperly exercising the trustee's powers, isprotected from liability as if the trustee properly exercised the power.

B. A person other than a beneficiary who in good faith deals with a trusteeis not required to inquire into the extent of the trustee's powers or thepropriety of their exercise.

C. A person who in good faith delivers assets to a trustee need not ensuretheir proper application.

D. A person other than a beneficiary who in good faith assists a formertrustee, or who in good faith and for value deals with a former trustee,without knowledge that the trusteeship has terminated is protected fromliability as if the former trustee were still a trustee.

E. Comparable protective provisions of other laws relating to commercialtransactions or transfer of securities by fiduciaries prevail over theprotection provided by this section.

(2005, c. 935.)