EPTL § 7-2.1

Extent of trustee's estate · as in force on May 31, 2026

§ 7-2.1 Extent of trustee's estate

(a) Except as otherwise provided in this article, an express trust vests in the trustee the legal estate, subject only to the execution of the trust, and the beneficiary does not take any legal estate in the property but may enforce the trust.

(b) This section does not prevent the creator of a trust from providing to whom the property shall belong in the event of the failure or termination of the trust or from disposing of the property subject to the execution of the trust. Such a transferee shall have a legal estate in the property as against all persons except the trustee and those lawfully claiming under him.

(c) A trust as described in sections 9-1.5, 9-1.6 and 9-1.7 of the estates, powers and trusts law, including a business trust as defined in subdivision two of section two of the general associations law, may acquire property in the name of the trust as such name is designated in the instrument creating said trust. Any property, so acquired can be conveyed, encumbered or otherwise disposed of only in such name by a conveyance, encumbrance or other instrument executed by:

(1) the person or persons authorized by the instrument creating said trust; or

(2) the person or persons authorized by a resolution duly adopted by the trustees; or

(3) a majority of the trustees unless the instrument creating said trust otherwise provides.

Any instrument of conveyance, encumbrance or disposition delivered prior to the effective date of this section to or by a trust to which this section applies, in its trust name is hereby validated provided that no action or proceeding to cancel or disaffirm it shall be instituted within one year from the effective date hereof, but nothing herein contained shall affect any such pending action or proceeding.

Official sourcehttps://www.nysenate.gov/legislation/laws/EPT/7-2.1

In plain English

An express trust gives the trustee the legal title to the trust property, while the beneficiary can only enforce the trust.

(a) Except as this article provides otherwise, an express trust vests the legal estate in the trustee, subject only to carrying out the trust; the beneficiary takes no legal estate but may enforce the trust. ★
(b) The creator may still say who gets the property if the trust fails or ends, or dispose of it subject to the trust. That transferee holds a legal estate against everyone except the trustee and those lawfully claiming under the trustee.
(c) A trust described in §§ 9-1.5, 9-1.6 and 9-1.7 (including a business trust under the general associations law) may acquire property in its designated trust name. That property may be conveyed, encumbered or disposed of only in that name, by an instrument executed by (1) persons authorized by the trust instrument, (2) persons authorized by a trustees' resolution, or (3) a majority of the trustees unless the instrument provides otherwise. ★ Instruments made in the trust name before this section took effect are validated unless an action to cancel or disaffirm is started within 1 year of the effective date; pending actions are not affected.

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.

In print

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.