Tips From the Pros: Trust Termination TrepidationTips From the Pros: Trust Termination Trepidation

Like all good things, most trusts, sooner or later, come to an end. When a trust terminates and the trustee has made final distribution, the trustee may remain vulnerable to breach of fiduciary duty claims by the remainder beneficiaries for a considerable period.¹ Of course, no trustee wants to be sued at any time for any reason, but a particularly egregious situation for a trustee is to be the respondent in litigation initiated by one or more remainder beneficiaries well after the fiduciary relationship has been concluded and all trust property distributed.² Accordingly, virtually all corporate trustees, and most well-advised individual trustees, seek protection against residual potential liability before making final distribution of a ...