{"data":{"id":"us-pa/20-pa.c.s.-7790.2","jurisdiction":"us-pa","citation":"20 Pa.C.S. § 7790.2","heading":"Protection of person dealing with trustee - UTC 1012.","body":"(a) (Reserved).\n(a.1) Protection from liability.--Unless a person assisting or dealing with a trustee has actual knowledge that the trustee is committing a breach of trust or has knowledge of such facts that the trustee's conduct amounts to bad faith, the person:\n(1) may assume without inquiry the existence of trust powers and their proper exercise by the trustee;\n(2) is not bound to inquire whether the trustee has power to act or is properly exercising the power; and\n(3) is fully protected in dealing with the trustee as if the trustee possessed and properly exercised the powers the trustee purports to exercise.\n(b) No requirement to inquire.--A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.\n(c) (Reserved).\n(c.1) Ultra vires.--A trustee's act may not be set aside or not specifically enforced because the trustee's act was not authorized by section 7780.5 (relating to powers of trustees - UTC 815) or 7780.6 (relating to illustrative powers of trustee) or because the trustee's act was authorized but the authority was improperly exercised. A court's power to set aside a transaction for fraud, accident, mistake or self-dealing is unaffected by this subsection.\n(d) Former trustee.--A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.\n(e) Effect of other laws.--Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.","path":["Title 20 - DECEDENTS, ESTATES AND FIDUCIARIES","CHAPTER 77 TRUSTS","SUBCHAPTER I LIABILITY OF TRUSTEES AND RIGHTS OF PERSONS DEALING WITH TRUSTEES"],"source_url":"https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM\u0026ttl=20\u0026div=0\u0026chpt=77\u0026sctn=90\u0026subsctn=2","current_through":"2026-03-18 (Statute Update stamp, 20 Pa.C.S.)","vintage":"","retrieved_at":"2026-09-02T16:31:33Z","sha256":"7fef6244697e402e51779679965851c888a1e10d1c7c25ebe20983a1dd725411","source_id":"us-pa","stale":false,"prev":"us-pa/20-pa.c.s.-7790.1","next":"us-pa/20-pa.c.s.-7790.3"},"notice":"GroundRules: Original legal text. Not legal advice."}