The ongoing trust litigation brought by the beneficiaries of trusts created by philanthropist Walter Bunzl illustrates the complicated dilemma faced by trust beneficiaries that want to challenge spending and compensation of trustees. The Bunzl family members brought a multitude of claims against the trustees, including breach of trust and fraud. However, two years later the claims are still unresolved and new claims have been brought due to the court appointed Receiver’s report. Thus, the beneficiaries that were concerned about how trust funds were being spent are now facing attorney and court costs for themselves, the trustees, and the receiver being taken out f their family wealth. This beneficiaries’ dilemma may be avoided by the trust instrument giving beneficiaries more options than litigation, such as the power to remove and replace trustees given to the beneficiaries or a trust protector.
See Joseph C. Mahon, The Beneficiaries’ Dilemma, Wealth Management, Apr. 10, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
