Exemption of third person from liability · as in force on May 31, 2026
§ 7-6.16 Exemption of third person from liability
A third person in good faith and without court order may act on the instructions of or otherwise deal with any person purporting to make a transfer or purporting to act in the capacity of a custodian and, in the absence of knowledge, is not responsible for determining:
(a) the validity of the purported custodian's designation;
(b) the propriety of, or the authority under this part for, any act of the purported custodian;
(c) the validity or propriety under this part of any instrument or instructions executed or given either by the person purporting to make a transfer or by the purported custodian; or
(d) the propriety of the application of any property of the minor delivered to the purported custodian.
A third person who acts in good faith without contrary knowledge may deal with a purported transferor or custodian without a court order and without investigating the custodian’s designation, authority, instruments, instructions, or use of the minor’s property. ★
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.