Clients frequently demand “bulletproof” trusts from their estate planning attorneys. Concerns about contests based on lack of capacity, undue influence, or even claims that a family member procured the trust through financial elder abuse weigh on our clients’ minds. Unequal distributions or family members’ feelings of entitlement to certain property amplify these concerns.
What questions should an attorney ask before hiring someone to prepare a client’s fiduciary accounting? What are the indicia of a poorly prepared accounting? Are waivers of account ever a good idea? Should the trust document routinely waive accountings? Ever? Is there anything a trustee’s attorney can do to shorten the statute of limitations on breaches of trust disclosed in an accounting?
Icicles on the Heart: The Effect of Advising a Client/Trustee with Uncertain Capabilities and Toward a Fiduciary Standard of Capacity
California law has long recognized a settlor’s right to restrict a beneficiary’s use of trust assets. Restraints on alienation, spendthrift clauses, shutdown clauses and wholly discretionary trusts are a few of the tools settlors may use when creating a trust for the benefit of someone likely to have creditor problems.