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How Much Power Should I Grant To My Trustee?

Granting a trustee broad discretionary powers may provide them with the maximum amount of freedom to exercise their fiduciary responsibilities. Without imposed limitations he or she can better adapt to the needs of the beneficiaries. Especially if the trust instrument is going to last several years.

By adopting language such as: absolute, unlimited, and sole, one can enforce the trustee's discretion to be binding on all of the parties and unquestionable. Granting a trustee such power gives them more flexibility with distributions and is likely to make it much harder for a beneficiary to challenge. This really cements the role of the trustee to act as a buffer between a beneficiary and the assets. However, while granting this level of discretion, if the trustee is not upholding their fiduciary duties then it could be more difficult for a beneficiary to succeed in a breach of fiduciary claim.

Think about the level of power you wish to grant to your trustee(s) and how this will effect your beneficiaries. Take some time to make a list of benefits and who you think is the best fit for the role. Then consult with a professional estate litigation Attorney to put it all together in a safe a secure trust that fits your family's needs.

*This blog entry was not written by an Attorney and should not be constituted as professional legal advice.

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