What We Learned from COVID Period

Times of economic stress may reveal trust asset mismanagement. Alternative fee structures may provide a solution.

Many trustees employ counsel to provide advice on dealing with and responding to inquiries from beneficiaries. Trustees may believe that their communications with and advice from counsel are confidential and cannot be disclosed to the beneficiaries without their consent. The recent court decision in Fiduciary Trust International of California v. Klein (2017) 9 Cal. App. 5th 1184 is a cautionary tale that warns trustees against assuming that all communications with an attorney are confidential.

Fiduciary accountings are easy to read when you understand the story they tell.