Sec. 114.081. PROTECTION OF PERSON DEALING WITH TRUSTEE. (a) A person who deals with a trustee in good faith and for fair value actually received by the trust is not liable to the trustee or the beneficiaries of the trust if the trustee has exceeded the trustee's authority in dealing with the person.
(b) A person other than a beneficiary is not required to inquire into the extent of the trustee's powers or the propriety of the exercise of those powers if the person:
(1) deals with the trustee in good faith; and
(2) obtains:
(A) a certification of trust described by Section 114.086; or
(B) a copy of the trust instrument.
(c) A person who in good faith delivers money or other assets to a trustee is not required to ensure the proper application of the money or other assets.
(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.
Added by Acts 1983, 68th Leg., p. 3332, ch. 567, art. 2, Sec. 2, eff. Jan. 1, 1984.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 451 (H.B. 564), Sec. 9, eff. September 1, 2007.
Section: Previous 114.006 114.007 114.008 114.031 114.032 114.061 114.062 114.063 114.064 114.081 114.082 114.0821 114.083 114.084 114.085 NextLast modified: September 28, 2016