Release of obligor or trustee from liability for transfer of assets to
nonprobate transferee
Sec. 9. Unless written notice asserting that a decedent's probate
estate is insufficient to pay allowed claims and statutory allowances
has been received from the decedent's personal representative, the
following rules apply:
(1) Payment or delivery of assets by a financial institution,
registrar, or another obligor to a nonprobate transferee under the
terms of the governing instrument controlling the transfer
releases the obligor from all claims for amounts paid or assets
delivered.
(2) A trustee receiving or controlling a nonprobate transfer is
released from liability under this section on any assets
distributed to the trust's beneficiaries. Each beneficiary, to the
extent of the distribution received, becomes liable for the
amount of the trustee's liability attributable to that asset
imposed by sections 2 and 3 of this chapter.
As added by P.L.165-2002, SEC.11.
Last modified: May 24, 2006