![]() ![]() Without specific guidance from the law, a trustee should review with her attorney what information, if any, she should disclose. Restrictions on the trustee relating to distributions (For example, a trust may provide that trust funds can be used for all expenses except to purchase cigarettes) Ĭompensation of the trustee and the method of calculation. The method to request payment from the trust when the trust gives a beneficiary the right to request payments (For example, in a special needs trust, the beneficiary must send his or her bills to a trustee to be paid directly to vendors) The expected timeframe for any distributions from the trust The following are additional items of information a trustee may elect to disclose depending on the circumstances: Once a trust terminates, remainder beneficiaries should be informed of the termination of the trust and be given another copy of the trust, along with the contact information of the trustee. Generally, at a minimum, it is recommended that a trustee provides a copy of the trust and the contact information of the trustee to all the current beneficiaries. The trustee should identify the beneficiaries of the trust and determine their interest-which could be an interest in current income generated by the trust's assets, an interest in the principal, or an interest in the remainder. A trustee should closely review and familiarize himself with the terms of the trust and the intent of the creator of the trust. The content and timing of such disclosures initiated by the trustee depend on the type of trust and the needs of the beneficiaries. ![]() This is important because a trustee has a duty to act in good faith therefore, open disclosure of information is generally indicative of a trustee acting accordingly.įor this reason, a trustee can also elect to provide information to a trust's beneficiaries of his own accord. It is important for any trustee to keep open communication with beneficiaries and even good practice to disclose information about the administration of the trust. In these situations, the trustee may simply provide the information requested. New York State law does not currently require a trustee to disclose any information relating to the trust unless requested to do so by a beneficiary. The duty to inform is one that we will explore in this article. While a trustee is endowed with many powers over the trust, this trusteeship also comes with many duties. In creating a trust, a legal relationship is established between the named trustee and the beneficiaries of the trust. Trusts are widely used for a multitude of reasons. ![]()
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