Person paying money to the trustee protected · as in force on May 31, 2026
§ 7-3.3 Person paying money to the trustee protected
A person who in good faith transfers money or property to a trustee is not responsible for the proper application of such money or property; and any right or title derived by him from the trustee in consideration of such transfer is not affected by the trustee's misapplication of such money or property.
A person who in good faith transfers money or property to a trustee need not ensure the trustee uses it properly. ★ Rights or title received in exchange are not harmed by the trustee’s later misapplication.
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.