Nelson v. First National Bank and Trust Co. of WillistonNelson v. First National Bank and Trust Co. of Williston
Nelson v. First National Bank and Trust Co. of Williston, 8th Cir., No. 07-3543 (Oct. 1, 2008), demonstrates the protection a broad authorization for investments and an investment liability clause can provide especially for trusts holding an undiversified portfolio. Leonard Nelson established an irrevocable trust in 1998, to provide income to his children and to pay the taxes due on his estate after
January 1, 2009
David A. Handler
Nelson v. First National Bank and Trust Co. of Williston, 8th Cir., No. 07-3543 (Oct. 1, 2008), demonstrates the protection a broad authorization for investments and an investment liability clause can provide — especially for trusts holding an undiversified portfolio.
Leonard Nelson established an irrevocable trust in 1998, to provide income to his children and to pay the taxes due on his estate after his death. He named First National Bank and Trust Co. of Williston (First National) as trustee.
The trust assets were comprised mostly of Medtronic stock. But the trust agreement provided that any investment made or kept by the trustee in good faith would be proper, despite any risk, lack of diversification, marketability or g...
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