Duty to Inform Beneficiaries

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Presentation transcript:

Duty to Inform Beneficiaries

Development of Duty 1. Before January 1, 2006 Trustee had a common law duty to disclose: Upon beneficiary’s request, and When trustee is about to take a material unusual action.

Development of Duty 2. January 1, 2006 to June 15, 2007 Former § 113.060 imposed on the trustee a duty to keep beneficiaries reasonably informed of: Trust administration, and Material facts necessary for beneficiaries to protect their interests. Problems with this duty?

Development of Duty 3. Beginning June 15, 2007 Statutory duty repealed Common law duty restored.

Development of Duty 3. Beginning June 15, 2007 When settlor may limit the common law duty to inform beneficiaries under § 111.0035(c): Trust is revocable, or Beneficiary is under age 25, or Beneficiary is “remote,” that is not eligible for (1) current distribution, or (2) distribution if trust were to terminate now.