Posts Tagged ‘Governance’
It’s harder to be a trustee than to go down steps on a pogo stick
The Problem: You are a trustee. You said “Yes” when a family member, close friend, or client asked you if you would serve as their successor trustee. Now, the settlor is dead, and you occupy the fiduciary office. And for that you will receive treasures in heaven… and consternation here on earth, because the beneficiaries…
Read MoreAnatomy of a Trustee Lawsuit
Twice in the last 30 days we have gotten calls from attorneys who are representing trustees being sued by disgruntled beneficiaries.
Read MoreUPIA §2(c)(6) re Other Resources of the Beneficiary
The Conundrum: Question: Should the investment policy and distribution rate from a trust be informed by assets held by the beneficiary that are outside the trustee’s responsibility or control? Predictably the answer is… it depends. However, in most cases it is fair to say, “The trustee is obligated by statute to consider other assets, income,…
Read MoreWill ERISA Trustees ever learn? or “I guess they aren't that smart at Princeton”
The Duty: An ERISA trustee is obligated to know who is being paid what by whom and whether the fees being paid are fair and reasonable. This duty is implicit in the trustee’s duty of prudence under C.F.R. §404a-1 and is specifically required by the U.S.C. §1104(a)(1)(A)(ii). The Breach: The ERISA plan trustees at Boeing…
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