N.Y. Estates, Powers & Trusts Law § 7-2.1: Extent of trustee's estate

§ 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.