Is there fiduciary liability insurance protecting the trustee from claims by beneficiaries?
How will the trustee’s compensation be determined? The trustee’s compensation is ordinarily determined by the terms of the trust instrument. In certain instances, the trustee may petition the court for modification of trust provisions setting unreasonably low compensation. However, the court-ordered modification to the fee provision will generally apply prospectively and not retroactively. If the compensation clause in the trust instrument sets an unreasonably low fee, then the CPA should request that the settlor modify the provision or refuse to accept the responsibility. If the trust is already irrevocable, then the CPA should insist that a beneficiary or other interested party (through legal counsel) petition the court for modification of the trustee compensation provision. The CPA’s written acceptance of the office of trustee should be expressly contingent on the court’s approval of the petition modifying the compensation provision. If the trust instrument is silent about the trust
Related Questions
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