Advising Trustees

I often tell my students that if they are asked to be a trustee, they should use the “cocaine rule,” that is, “just say no.”

However, I also explain that being a trustee’s attorney is a great job provided you are “ready” for the job.  A teleconference and live audio webcast sponsored by the ABA’s Real Property, Trust & Estate Law endeavors to provide this preparation.  This June 2, 2009 program is entitled Ethical Considerations for Trustees and Their Advisors.

Here is a description of this program:

Agreeing to act as trustee also means assuming the responsibilities – and potential liabilities – associated with that role. Trustees and their advisors must grapple with a number of issues rife with conflicts of interest and potential pitfalls.

During this presentation we will examine how to minimize a trustee’s potential liability in the following areas:

• Investments: How does the lawyer advise the trustee regarding how trust funds are to be invested so as to satisfy the conflicting interests of the income beneficiaries and the remainder persons and to insure that the trustee remains compliant with the Prudent Investor Rule?
• Who does the “family lawyer” represent – The settlor? The trustee? The income beneficiary? The remainder persons?
• Is the trustee protected in relying on the provisions of an instrument to obviate fiduciary duties that would otherwise be imposed, such as the duty to diversify?
• Distributions: How does the lawyer advise the trustee regarding making distributions from trust assets and utilizing the power to adjust or unitrust regimes so as to balance conflicting interests?
• Taxes: Who is to bear the tax burden? How does the lawyer advise the trustee in making tax elections when the results may negatively impact one or more beneficiaries?