Under the shelter rule, the transferee gets the rights of the transferor even if the transfer is not for value.

Question

Quizplus · Accepted Answer

The shelter rule allows the transferee (person receiving the property) to claim the same rights to the property that the transferor (person originally owning the property) had, regardless of whether or not the transfer was made for value. This means that the transferee can benefit from the transferor's rights even if they did not give anything in exchange for the property.

Under the Shelter Rule, the Transferee Gets the Rights of the Transferor