Abstract
It is not unusual for settlors to appoint beneficiaries as trustees. However, there are serious risks associated with this practice. The Article will examine some of these risks and suggest ways to reduce them. Part II describes why settlors appoint beneficiaries as trustees. Part III identifies some of the cases that have arisen where other trust beneficiaries have charge trustee beneficiaries with breach of fiduciary duties such as the duty of loyalty, impartiality, and prudence, as well as the duty to inform and report. Part IV explores a number of cases which have involved common trust arrangements such as revocable <i>inter vivos</i> trusts, discretionary trusts, support trusts and marital trusts. Part IV describes various drafting options and other measures that might reduce the chances of litigation by other beneficiaries.
Original language | American English |
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Pages (from-to) | 277-306 |
Journal | The Quinnipiac Probate Law Journal |
Volume | 36 |
Issue number | 3 |
State | Published - 2023 |