News & Analysis as of

Trustees Uniform Trust Code

Charles E. Rounds, Jr. - Suffolk University...

Legislative appropriations that are deceptively marketed as trusts: The sagas of the Federal Social Security Trust Fund and South...

Many of my JDSUPRA postings, a full catalog of which may be found below, are about the doctrinal incoherence that is being inflicted on the institution of the trust by legislative intrusions into equity doctrine, intrusions...more

Charles E. Rounds, Jr. - Suffolk University...

When the centerpiece of a trustee’s defense in a breach-of-fiduciary-duty action is an empty file cabinet and a general lack of...

An incident of the trustee’s duty to be generally prudent, to account (or report) to beneficiaries, and to refrain from breaches of the duty of undivided loyalty, such as engaging in unauthorized self-dealing, is the...more

Charles E. Rounds, Jr. - Suffolk University...

The Uniform Trust Code inadvertently puts a bullseye on the trustee’s doctrinally indispensable affirmative duty to furnish all...

Many of my prior JDSUPRA postings caution that codification of the law of trusts, such as the Uniform Trust Code (UTC), are only partial codifications. See the catalogue of my prior postings below. There is much prevailing...more

Charles E. Rounds, Jr. - Suffolk University...

Equity’s maxims have many jurisprudential functions, one critical function being to sinew the equitable principles that regulate...

Equity’s maxims have many jurisprudential functions, one critical function being to sinew the equitable principles that regulate the law of trusts. A court that is saddled with sorting out the rights, duties and obligations...more

Warner Norcross + Judd

Silent Trusts Have Come to Michigan

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Recently, Michigan added a new section to the trust code, making it possible for trust settlors to create “quiet” or “silent” trusts in Michigan. As the name implies, in a silent trust arrangement, a trustee is not required...more

Proskauer Rose LLP

Wealth Management Update - September 2024

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The September 2024 Section 7520 rate for use with estate planning techniques such as CRTs, CLTs, QPRTs and GRATs is 4.8%, a decrease from the August 2024 rate of 5.2%. The September applicable federal rate (“AFR”) for use...more

Charles E. Rounds, Jr. - Suffolk University...

Whether an equitable power of appointment incident to a trust relationship is “in gross” or “collateral”: The practical...

Section 17.3, comment f, of the Restatement (Third) of Property (Wills and Other Donative Transfers) explains the difference between a collateral power of appointment and a power of appointment in gross: “In traditional...more

Charles E. Rounds, Jr. - Suffolk University...

The trustee has brought a reformation action to reorder the equitable property rights of the trust’s beneficiaries: Spotting the...

Section 415 of the Uniform Trust Code provides that even in the absence of ambiguity the court may reform the terms of a trust to conform the terms to the settlor’s intention if it is proved by clear and convincing evidence...more

Holland & Knight LLP

Tennessee Trust Bill Takes Effect and Makes Important Changes to the State's Trust Laws

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Tennessee Gov. Bill Lee approved Public Chapter No. 695 on April 11, 2024, as passed by the Tennessee General Assembly (Trust Bill). The new law became effective on July 1, 2024, and it made several important changes to...more

Charles E. Rounds, Jr. - Suffolk University...

The federal Corporate Transparency Act (CTA), whose constitutionality is currently being tested in the courts, creates another...

The federal Corporate Transparency Act (CTA), effective January 1, 2024, whose constitutionality is currently being tested in the courts, follows in the footsteps of the IRC in that it creates a limited statutory exception...more

Charles E. Rounds, Jr. - Suffolk University...

Trustee in breach of trust conveys trust property to a third party: Is the transferee a necessary party to an action for breach...

If the trustee in breach of trust conveys the trust property to a third party to the trust relationship, would the transferee be a necessary party to any action for breach of trust that the trust beneficiaries might bring?...more

Charles E. Rounds, Jr. - Suffolk University...

Creating a nonvoidable domestic asset protection trust (DAPT) that has multijurisdictional contacts: The state and federal...

Creating a domestic asset protection trust (DAPT) that both has multijurisdictional contacts and is nonvoidable in whole or in part is easier said than done. There are the state conflict-of-laws issues, a few of which I...more

Charles E. Rounds, Jr. - Suffolk University...

When the parties to a trust relationship, as well as its subject property, are located in different states, which state’s law...

Consider the following situation. Settlor owns a thousand acres of land in a domestic-asset- protection haven (DAPT state). While he is alive, he transfers in trust the land to a corporate trustee that does business...more

Charles E. Rounds, Jr. - Suffolk University...

Uniform Trust Code (UTC) and Uniform Voidable Transactions Act (UVTA) could be better coordinated in the Domestic Asset...

In a Sept. 11, 2023 JDSUPRA posting I questioned the doctrinal and practical utility of partial legislative codifications of equity’s principles-based jurisprudence, such as the UTC, the very institution of the trust being a...more

Charles E. Rounds, Jr. - Suffolk University...

Trustee’s Duty To Defend Trust Property From Third-Party Claims Versus Trustee’s Duty To Defend Trust’s Very Existence, As Well...

A longstanding and critical incident of a trustee’s fiduciary duty of loyalty is the duty to vigorously defend the trust’s very existence, as well as all its material provisions (hereinafter “existence defense”), unless it...more

Charles E. Rounds, Jr. - Suffolk University...

The Case For Making Substantial Unrestricted Gifts To A Charitable Corporation Indirectly Via Assignment To An Independent...

When considering how to make a substantial gift to a charitable corporation, one should not rule out making it indirectly via assignment to an independent trustee. First, an independent trusteeship facilitates proper asset...more

Holland & Knight LLP

Tennessee Legislature Approves Enhancements to Uniform Trust Code

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The Tennessee legislature continues to take action to maintain Tennessee's status as one of the foremost states in which to situs trusts. The legislature's most recent enhancements to Tennessee's Uniform Trust Code (TN UTC)...more

Winstead PC

[Webinar] A Trustee’s Duty To Disclose - June 13th, 10:00 am - 11:00 am CT

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David F. Johnson will address the complex issues surrounding a trustee’s duty to disclose and will compare Texas law and the Uniform Trust Code on this topic. He will address disclosure requirements under trust documents and...more

Winstead PC

Trust Issues in Divorce Proceedings - Presentation - May 2023

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David F. Johnson presented to the Tarrant County Probate Bar Association on May 4, 2023, on the topic of “Trust Issues in Divorce Proceedings.” This program discussed some of the many trust issues that arise in divorce...more

Holland & Hart LLP

Trust Disclosure Requirements and Quiet Trusts

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The Uniform Trust Code and the Restatement (Third) of Trusts both follow the presumption that trust beneficiaries should be generally kept aware of the existence of the trust, their status as beneficiaries, and their right to...more

Harris Beach PLLC

Can Your Agent Under a Power of Attorney Create a Trust for You? Maybe.

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This isn’t really a trick question, though it can seem that way - how do you create a trust? In Massachusetts, you can create a trust by transferring your assets to someone else as trustee, by making a will with trust...more

Burns & Levinson LLP

Lessons from the Massachusetts Appeals Court’s Most Recent MUTC Case

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The Massachusetts Uniform Trust Code (MUTC) is still new enough that any higher court decision interpreting it feels like a special day for fiduciary litigators. Well, ’tis the season!...more

Winstead PC

Corporate Trustee’s Statements May Suffice For A Statutory Accounting

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Trust beneficiaries often request a corporate trustee to prepare a statutory accounting. The Texas Trust Code in Section 113.151 provides that a beneficiary may request a written statement of accounts....more

Holland & Hart LLP

Why Trust Situs is Important

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When does a trust’s situs, also known as principal place of administration, move? What is enough to trigger a move? Should a trustee be concerned about their trust’s situs? These are all great questions that often get...more

Holland & Hart LLP

Wyoming Situs

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We are seeing an increasing number of clients that want to situs trusts in Wyoming due to its favorable trust law and lack of state income tax, although over the last several months clients have also sought the open spaces of...more

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