Chapter 2 Qualifications, Appointment, Succession, and Bonds of Trustees

Index

Section 2.1 Fundamental Considerations
Section 2.2 What Is a Fiduciary?
Section 2.3 Legal Capacity to Take, Hold, or Administer Property
Section 2.4 Minors and Disabled Persons
Section 2.5 Convicted Persons
Section 2.6 Entities With Sovereign Immunity
Section 2.7 Private Corporations
Section 2.8 Nonresidents Generally
Section 2.9 Nonresident Aliens
Section 2.10 Nonresident Corporate Fiduciaries and Reciprocity
Section 2.11 Nonresident Corporate Fiduciaries and Constitutional Issues
Section 2.12 Sole Income and Remainder Beneficiary as Trustee—Merger of Title
Section 2.13 Practical Capabilities—Who Ought to Be Named as Trustee?
Section 2.14 Ethical and Statutory Prohibitions
Section 2.15 Capability to Perform Duties
Section 2.16 Desirable Personal Characteristics
Section 2.17 Possible Solutions for Trustee Incapability
Section 2.18 Advantages and Disadvantages of Using Nonprofessional, Professional, or Corporate Fiduciaries—An Ideal Combination
Section 2.19 Alternatives When No Trustee Is Available
Section 2.20 Tax Considerations
Section 2.21 Generally
Section 2.22 Personal Trustees
Section 2.23 Executors as Trustees
Section 2.24 What Constitutes Acceptance
Section 2.25 What Constitutes Disclaimer—Refusal to Serve
Section 2.26 Appointment by Settlor or Testator
Section 2.27 Appointment by Courts
Section 2.28 Resignation
Section 2.29 Appointment of Successor
Section 2.30 Breach of Trust
Section 2.31 Loss of Legal Capacity or Moral, Physical, or Mental Fitness
Section 2.32 Nonresidence
Section 2.33 Insolvency or Bankruptcy
Section 2.34 Exercise of Involuntary Removal Power Without Cause
Section 2.35 Failure to Give Bond
Section 2.36 Refusal to Cooperate With Cotrustees and the Duties to Prevent and Obtain Redress for Breaches of Trust by Cotrustees
Section 2.37 Failure to Keep Records and Keep Beneficiaries Informed
Section 2.38 Charging Excessive Fees
Section 2.39 Hostility or Favoritism to Beneficiaries
Section 2.40 Holding Adverse or Conflicting Interests
Section 2.41 Self-Dealing—The 18 Negative Duties
Section 2.42 Neglect of Trust and Delegation of All Responsibilities
Section 2.43 Refusal to Comply With Trust Terms and Deviation From Duty Without Court Authority
Section 2.44 Abusive Exercise of Discretionary Powers
Section 2.45 Commingling of Trust Assets
Section 2.46 Failure to Protect and Preserve Trust Assets and to Defend the Trust
Section 2.47 Failure to Distribute Income
Section 2.48 Generally
Section 2.49 Statutory Exoneration by Nonjoinder or Formal Dissent
Section 2.50 Estoppel—Consent of Beneficiaries
Section 2.51 Nonjudicial Procedure by Settlor, Cotrustees, or Beneficiaries
Section 2.52 Jurisdiction and Venue
Section 2.53 Whether to Appoint Successor Trustees at All and How Many
Section 2.54 Necessity for, Form of, and Period Covered by Final Account—Due From and to Whom?
Section 2.55 Finality—Waiver, Statutes of Limitation, and Fraud
Section 2.56 Compensation for Trustees Who Are Removed or Resign
Section 2.57 When the Trustees All Disclaim
Section 2.58 Succession of Title to Heirs or Personal Representative of Sole Trustee With No Immediate Successor
Section 2.59 Succession Between Accepting or Acting Cotrustees
Section 2.60 Succession From One Trustee to Another Under Trust Terms
Section 2.61 Succession by Court Order
Section 2.62 Duties of Continuing or Successor Trustees as to Final Accounting and Breaches of Trust of Former Trustees
Section 2.63 Bonds of Trustees
Section 2.64 Miscellaneous Statutes on Trusts and Trustees