Violating A Trust Agreement

According to the fair doctrine of laches, the courts (at the discretion of the judge) cannot argue the claim if the remedy is unreasonable and the position of the agent has been compromised by the delay. It seems that Tom deliberately decided to hold Brian`s share of the trust and prevent him from ever receiving his $4 million. Option 2: In most cases, the agent refuses to provide an accounting and distribute a fiduciary distribution. Our next step would be to launch a petition for accounting and a division of trust. Our goal here would be to distribute as much money as possible to Brian. We want to get hold of Brian`s assets so that Tom can no longer abuse the trust. Prudent Man Rule: The attorney can invest in security if he is a prudent man of discretion and intelligence who aspires to a decent income and the preservation of capital. It is important to note that the section does not apply if the agent was negligent. In practice, this means that an agent cannot have acted reasonably if he has not received the level of expertise necessary for the size of the trust. To be clear, this does NOT mean that you, as a beneficiary, are responsible for the trust`s debt.

This only means that if a creditor is discovered and the Trust has distributed all the assets to you, you must use those distributed assets to pay the agent. Debt follows distributed assets. Once you pay everything you have received from the trust to a creditor, you do not have to pay anything else. These are only the distributed assets that the creditor can receive, not your money or your personal wealth. Directors should not use estate or trust assets for personal gain. Their decisions must be conflict-free and self-evident. Sometimes the lines of what your personal gain is and what is best for the recipient are grey. If the lines are not clear, seek the advice of an experienced estate planning lawyer. Your lawyer can be a resonant (at no cost to you) to ensure that your actions do not result in any personal liability.

If the court is or can be held liable for a breach of trust or may be held liable, but has “acted honestly and reasonably and should be reasonably excused” for the breach of trust, the court may relieve him, in whole or in part, of his personal responsibility for the same. If you do not have a trusted distribution, you should launch a petition to remove the agent.