Trustee of passive trust not to take · as in force on May 31, 2026
§ 7-1.2 Trustee of passive trust not to take
Every disposition of property shall be made directly to the person in whom the right to possession and income is intended to be vested and not to another in trust for such person, and if made to any person in trust for another, no estate, legal or equitable, vests in the trustee. But neither this section nor 7-1.1 shall apply to trusts arising or resulting by implicaiton of law.
Property should pass directly to the person meant to receive possession and income. If placed in a passive trust for that person, no legal or equitable estate vests in the trustee. ★ This rule and § 7-1.1 do not apply to trusts arising by implication of law.
Marked in the text: penalties, time limits, sums of money. Editorial emphasis added by this edition; it does not appear in the statute as enacted.
This provision appears in Volume 1 — The Surrogate's Court in Plain English; Volume 3 — The Surrogate's Court: Court Rules & the EPTL; Volume 5 — Your Career: Surrogate's Court in Plain English.