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12/5/2010
David M. Frees, III
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Pennsylvania Trustee Mistake # 6 - Failing To Communicate Properly

Pennsylvania Trustee Mistake Part 6

Failing To Communicate Properly

In general,beneficiaries must have access to essential information regarding the trust in order to protect their interests and properly monitor the trustee's performance. Under the Pennsylvania Uniform Trust Act the burden of monitoring the trustees' performance and oversight of the trust is on the beneficiaries. As a trustee you must keep the beneficiaries informed and this could even limit your liability in the future. However, this requirement or notice is new, and the trustees of many trusts may not even realize that it applies to them.

It is a mistake to think that the burden is on the beneficiary so you only need to communicate if the beneficiary asks. For example in a revocable trust when the settler (person who created the trust) dies the trustee must notify the settler's spouse, children, personal representative, and all current beneficiaries of the trust. Failure to follow this and other notice requirements can cause unnecessary hostility from the family and beneficiaries towards the trustee and can lead to personal liability on the trustee's part.

Certian notice provisions can also help you to protect yourself from lawsuits in the future.

A beneficiary has five years to challenge a transaction after the beneficiary receives notice of the removal, resignation, or death of a trustee; five years after the termination of the beneficiaries interest terminates; or five years after the termination of the trust, whichever occurs first. These challenges may be barred sooner if you provide annual written reports including information about the trusts assets, liabilities, receipts, and disbursements to beneficiaries. These written reports help protect the trustee, the beneficiary, and the trusts assets. Communication, notice, and information is key to a workable relationship between you and the beneficiaries and when done might, limit your liability  in the future!

See all ten of our articles on How To Avoid The Most Common Mistakes Trustees Make:

Avoiding Trustee Mistakes No. 1: Trustees Failing To Understand The Trust Language

Avoiding Trustee Mistakes No. 2: Trustees In Trouble Making Early Distributions

Avoiding Trustee Mistakes No. 3: Trustees Failing To Follow The Prudent Investor Rule

Avoiding Trustee Mistakes No. 4: Trustees Failing To Follow The Uniform Trust Act

Avoiding Trustee Mistakes No. 5: Trustees Failing To Follow The Principle And Income Act

Avoiding Trustee Mistakes No. 6: Trustees Failing To Communicate Properly

Avoiding Trustee Mistakes No. 7: Failing To Properly Reform, Amend, Or Terminate

Avoiding Trustee Mistakes No. 8: Failing To File Tax Returns Or To Seek Professional Assistance

Avoiding Trustee Mistakes No. 9: Failing To Understand The Role Of Multiple Trustees

Avoiding Trustee Mistakes No. 10: Trustees Failing To Do The Job



David M. Frees III
dfrees@utbf.com
610-933-8069

 Pennsylvania Trustee and Executor  Lawyer

Category: Executor, Trustees and Probate

Labels: living trust mistake Malvern trust lawyer PA trust PA trust attorney Pa trust lawyer PA trustees PA trusts Pennsylvania living trusts Pennsylvania trust Pennsylvania trust attorney Pennsylvania trust lawyer pennsylvania trustee pennsylvania trustee mistake Pennsylvania trusts Phoenixville estate lawyer protecting living trust trustee liability trustee mistake West Chester trust lawyer


David M. Frees III, Esquire has been named as the Main Line Today Magazine Top Lawyer in the Trusts and Estate area.  He has also been awarded the title of Pennsylvania Super Lawyer in Philadelphia Magazine.David M. Frees III

David Frees focuses his practice in the areas of trust and estate planning, probate, asset protection and related topics.  David's firm also has an Elder Law section providing services to families and individuals trying to protect assets from nursing home expenditures and the issues facing the elderly.

David can be reached at 610-933-8069 for a personal or telephone consultation to update a will, trust, or comprehensive estate plan.  He always quotes a flat fee for such estate planning services and you will recieve a complimentary consultation by mentioning this blog.

dfrees@utbf.com



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