Assume trustee of an irrevocable inter vivos trust leases entrusted land to an entity that employs the trustee. All rents properly accrue to the trust estate. The beneficiaries assert, however, that the trustee may have...more
Assume a parcel of real estate was the subject of an irrevocable express trust until the trustee in breach of trust deeded the title to himself, ostensibly free of trust. Our self-dealing trustee is hereinafter referred to as...more
The equitable defense of acquiescence, which rests upon the equitable doctrine of election, is available to a trustee if a beneficiary, fully apprised of all the relevant facts and law, of full age and legal capacity, and...more
August was National Make-A-Will Month, but September is a good time to revisit another key component of estate and elder planning: powers of attorney (POAs). These documents are critical tools for ensuring trusted individuals...more
The UK Supreme Court has recently addressed novel issues concerning liability for dishonest assistance in respect of a breach of fiduciary duty, involving the acquisition and dissipation of unauthorised profits....more
Profit narrowly defined is total revenue minus total expenses, i.e., net gain. Profit broadly defined is merely a synonym for benefit. When a trustee’s unauthorized self-dealing directly harms the trust estate, the trustee is...more
Executors and administrators of estates in Virginia must swear an oath before the probate clerk that they will “faithfully perform the duties of [their] office to the best of [their] judgment.” These duties are called...more
Under Virginia law, when a party is considering filing a lawsuit, the most important thing to consider is whether or not the cause of action that is the basis for the lawsuit is time-barred. This is determined by the...more
A court should not enforce a trust in terrorem clause if its enforcement under the particular facts and circumstances would frustrate settlor intent. Assuming that the settlor intended to impress a trust upon the property,...more
The Restatement (Third) of Trusts, specifically §104, lists four general areas in which the beneficiary’s actions may lead to an assumption of internal liability to the trust estate: (1) A loan or advance to the beneficiary...more
In California, trustees have a fiduciary duty to act impartially and in the interest of all beneficiaries. But what happens when a trustee uses trust funds to finance litigation that benefits only certain beneficiaries—or...more
In a recent decision, the Court of Appeals of Virginia upheld a lower court’s ruling that Kositzka, Wicks and Company (KWC) breached its fiduciary duty to Edward Joseph Ryan, awarding his estate $999,050 in damages, attorney...more
Assume sole trustee of an irrevocable discretionary trust for benefit of deceased settlor’s descendants living from time to time suffers a sudden unforeseen mental disability that causes trustee to imprudently administer the...more
On December 23, 2022, President Biden signed the “James M. Inhofe National Defense Authorization Act for Fiscal Year 2023” which, among many other things, amended Section 19 of the Federal Deposit Insurance Act, 12 U.S.C....more
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
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
The Federal Deposit Insurance Corporation (FDIC) has revised its regulations on Section 19 of the Federal Deposit Insurance Act to conform with the previously enacted Fair Hiring in Banking Act (FHBA). The FHBA paved the way...more
"The law on 'knowing receipt' has perplexed judges and academics alike for several decades" – Lord Burrows (paragraph 99). In a decision with significant implications for claims involving fraud and breach of fiduciary duty...more
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
The court in Freeport-McMoRan Oil & Gas LLC v. 1776 Energy Partners, LLC, 672 S.W.3d 391 (Tex. 2023) explained that “constructive trusts, being remedial in character, have the very broad function of redressing wrong or...more
StoneTurn Partner Sarah Keeling and Senior Adviser Richard Mackintosh host a discussion on the evolving risk landscape, examining geopolitical shifts, emerging threats in the Middle East, and the impact of AI on security....more
Introduction - The UAE has a comprehensive legal framework governing labour relations and financial crimes. Employers in the UAE have clear guidelines for terminating workers without notice in the case of serious offences,...more
Oatlands Historic House in Leesburg, VA was built in 1804 and is recognized as one of the finest federal-period country estate homes in the country. The home and approximately 400 surrounding acres were donated to the...more
On June 22, 2023, the United States Supreme Court handed down its third decision regarding federal Indian law this term. In a 5-4 decision, the Court held that the Navajo Treaty of 1868 does not require the United States to...more
With four decisions yesterday, the Court has now cut its backlog down to the mid-teens. And with decisions likely today as well, the Court is well on its way to clearing the docket as the term ends....more