CHAPTER 4. RULES GOVERNING THE RIGHTS OF THIRD PARTIES
IC 30-4-4
Chapter 4. Rules Governing the Rights of Third Parties
IC 30-4-4-1
Presumption of trustee's authority
Sec. 1. (Presumption of Trustee's Authority)
(a) Except as provided in subsection (b) of this section, any thirdperson dealing with the trustee or assisting him in conducting atransaction:
(1) may assume without inquiry that the trustee has the powers hepurports to exercise and has exercised them properly; and
(2) shall not be responsible for the application of money orproperty paid or delivered to the trustee.
(b) If the third person has actual knowledge that the trustee isexceeding his powers or is improperly exercising them, that personwill not be protected under subsection (a) of this section.
(c) If a trust which includes real estate is a public record in thecounty in which the real estate is situated, a third person dealing withthe trustee with respect to that real estate shall be deemed to haveactual notice of the terms of the trust.
(Formerly: Acts 1971, P.L.416, SEC.5.)
IC 30-4-4-2
Transfers by the trustee to third persons
Sec. 2. (Transfers by the Trustee to Third Persons)
(a) If, in transferring an interest in trust property to a third party,the trustee is not committing a breach of trust, the transferee holdsthe interest free of the trust and incures no liability to the beneficiary.
(b) A third person, to whom an interest in trust property istransferred by the trustee in breach of trust, takes his interest free ofthe trust if he:
(1) takes for value and without notice of the breach of trust; and
(2) is not taking part in what he knows to be an illegal transaction.
(Formerly: Acts 1971, P.L.416, SEC.5.)
IC 30-4-4-3
Judgment lien against the trustee or beneficiary
Sec. 3. (Judgment Lien against the Trustee or Beneficiary)
(a) A judgment against a person individually who may also be atrustee shall not be a lien against the trust estate.
(b) When trust property is properly sold or disposed of by thetrustee to a third person, the liens against a beneficiary's interest inthe trust estate, if any, will be divested from that property and willattach to the interest of that beneficiary in the proceeds from its saleor other disposition.
(Formerly: Acts 1971, P.L.416, SEC.5.)
IC 30-4-4-4
Disclosure of information concerning beneficiaries
Sec. 4. (Disclosure of Information Concerning Beneficiaries) (a) Any person may petition the court for disclosure ofinformation concerning beneficiaries or the trust estate. The courtmay order the disclosure of all or any part of the informationrequested in the petition only after the petitioner has shown both areasonable need for it and that the trustee has either refused orneglected to provide the information on written request delivered tothe trustee.
(b) The court shall, upon petition, order the disclosure of theidentity of the beneficiaries or their agents, if any, and any otherinformation concerning the trust, in any case in which:
(1) in a trust of real estate, there is a violation of a state law oran ordinance or resolution of a political subdivision relating tothe structure or condition of buildings, or the health and safetyof occupants of or visitors to buildings; or
(2) there has been or may be a deed, sale, lease, purchase,mortgage, assignment or similar transfer of any interest in trustproperty to or from any unit of state or local government oragency or official thereof;
and the trustee has refused to disclose the identities of thebeneficiaries within a reasonable time after written demand.
(Formerly: Acts 1971, P.L.416, SEC.5.)
IC 30-4-4-5
Certification of trust; contents; liability of person relying oncertification of trust
Sec. 5. (a) A trustee may furnish to a person other than abeneficiary a certification of trust instead of a copy of the trustinstrument. The certification of trust must contain the followinginformation:
(1) That the trust exists and the date the trust instrument wasexecuted.
(2) The identity of the settlor.
(3) The identity and address of the currently acting trustee.
(4) The powers of the trustee.
(5) The revocability or irrevocability of the trust and theidentity of any person holding a power to revoke the trust.
(6) The authority of cotrustees to sign or otherwise authenticateand whether all or less than all the cotrustees are required inorder to exercise the powers of the trustee.
(7) The manner of taking title to trust property.
(b) A certification of trust may be signed or authenticated by anytrustee.
(c) A certification of trust must state that the trust has not beenrevoked, modified, or amended in any manner that would cause therepresentations contained in the certification of trust to be incorrect.
(d) A certification of trust may contain the dispositive terms of atrust.
(e) A recipient of a certification of trust may require the trustee tofurnish copies of excerpts from the original trust instrument and lateramendments that: (1) designate the trustee; and
(2) confer on the trustee the power to act in a pendingtransaction in which the recipient has an interest.
(f) A person who acts in reliance on a certification of trust withoutknowledge that the representations contained in the certification oftrust are incorrect:
(1) is not liable to any person for acting in reliance on thecertification of trust; and
(2) may assume without inquiry the existence of the factscontained in the certification of trust.
Knowledge of the terms of the trust may not be inferred solely fromthe fact that a copy of all or part of the trust instrument is held by theperson relying on the certification.
(g) A person who in good faith enters into a transaction in relianceon a certification of trust may enforce the transaction against the trustproperty as if the representations contained in the certification werecorrect.
(h) A person making a demand for the trust instrument in additionto a certification of trust or excerpts from the original trustinstrument is liable for damages if the court determines that a persondid not act in good faith in demanding the trust instrument.
(i) This section does not limit the right of a person to obtain acopy of the trust instrument in a judicial proceeding concerning thetrust.
As added by P.L.238-2005, SEC.41. Amended by P.L.95-2007,SEC.18; P.L.202-2007, SEC.5.