Share

Gainesville Florida Estate Planning & Elder Law Blog

Friday, December 6, 2013

Duties of a Trustee

One of the most important decisions in creating a trust is choosing a trustee. The person creating the trust must choose a trustee that will understand what their duties are, the intent of the person behind the funding and exercise spending power for expenses that fall within the parameters set forth by the terms of the trust.

            Over the past year, two important decisions have emerged from New York which detail the affirmative duties assumed by trustees managing a trust for an individual with special needs.

            The first case memorialized a trustee’s requirement to take reasonable interest in and action on behalf of a beneficiary with special needs. In Matter of JP Morgan Chase Bank N.A. (Marie H.), 2012 NY Slip Op 22387, the trustees left the beneficiary without adequate care, despite his significant inheritance. The court decided that a trustee has a duty “to make themselves knowledgeable about [a beneficiary’s] condition and his needs, and the availability of services that would enable them to provide for those needs.” This duty extends to determining the medical, educational and quality of life needs that can be met by utilizing trust assets. By turning a blind eye to such needs and not approving proper and necessary payments to accommodate such needs, a trustee fails to fulfill their obligations.

            The second case, Liranzo v. LI Jewish Education/Research, focuses on the obligation of a trustee to investigate the public benefits available to a beneficiary of a special needs trust and holds a trustee liable for such a breach. The court determined that it breached its duties by “failing to make the necessary inquiries.

            The lesson to take away from this is to pick your trustees wisely when establishing a trust. Most importantly ensure that your trustee understands their obligation to the beneficiary.


Archived Posts

2019
2018
December
November
October
September
August
July
June
May
April
March
February
January
2017
December
November
October
September
August
July
June
May
April
March
February
January
2016
December
November
October
September
August
July
June
May
April
March
February
January
2015
December
November
October
September
August
July
June
May
April
March
February
January
2014
December
November
October
September
August
July
June
May
April
March
February
January
2013



The Law Office of Sam W. Boone, Jr. assists in Gainesville, Florida and the surrounding counties.

*The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.*

* I have read and accept the disclaimer **


The hiring of an attorney is an important decision that should not be based solely upon advertisements. Before you decide, ask us to send you free written information about our qualifications and experience. Additionally, the comments, statements and articles contained herein are general in nature and should not be relied upon as a basis for any legal opinion, action or conclusion on the part of the reader with respect to any particular set of facts or circumstances.

© Sam W. Boone, Jr., P.A. | Disclaimer | Law Firm Website Design by Zola Creative



© 2019 Sam W. Boone, Jr., P.A. | Disclaimer
4545 NW 8th Avenue, Suite A, Gainesville, FL 32605
| Phone: 352-374-8308

Estate Planning | Advanced Estate Planning | Elder Law | Special Needs Planning | Probate / Estate Administration | Asset Protection | Guardianships | Pet Trusts | Planificación de Bienes | Planificación Avanzada de Propiedad | Reviews | About Us | Resources

Attorney Web Design by
Amicus Creative