May 30, 2012
In the most recent installment of the McGuireWoods Fiduciary Advisory
Services annual multipart series on recent fiduciary cases, developments in the
law concerning various topics are examined through the following:
- Wortman v. Hutaff (North Carolina)
Trustees owe fiduciary duties until proper resignation under the Uniform
- Christie v. Kimball (California)
Court has the authority to compel trust accountings.
- Dunmore v. Dunmore (California)
Trustee has the ability to assign the trust’s claims in exchange for a
percentage of any recover on the claims.
- Zimmerman v. Patricia E. Zirpolo Trust (Ohio)
Trustee is required under the UTC to provide trust information to the minor
beneficiaries’ parent as their representative where there is no conflict of
- Fellows v. Colburn (New Hampshire)
Court does not have personal jurisdiction over trustees and beneficiaries for
environmental liability claim over in-state land held in an out-of-state trust.
- In re Pike Family Trusts (Maine)
UTC reverses the common law presumption that a trust cannot be terminated over a
- Snyder v. Snyder (California)
Trustee may not unilaterally act against votes of majority of trustees.
- Jervis v. Tucker et al. (Florida)
Post-guardianship trust amendment invalid where capacity not restored in the
manner required by trust terms.
- Bellamy v. Langfitt et al. (Florida)
Court cannot reform a trust to eliminate corporate co-trustee directly contrary
to settlor’s intent and trust terms.
- In re Estate of Mumma (Pennsylvania)
Multiple roles as fiduciary and beneficiary are not enough to justify removal of
trustee named by settlor in the absence of a breach of trust.
- In re Estate of Fridenberg (Pennsylvania)
Pennsylvania Supreme Court upholds modern fiduciary statutes and eliminates
arcane common law restrictions on trustee compensation.
- Downey, et. al. v. Keltz (Illinois)
The probate exception to federal court jurisdiction does not apply to an action
to compel a trustee to account.
- Faville v. Burns (Illinois)
Appellate court reverses dismissal of claims by adopted children to be declared
trust beneficiaries and to remove trustee for conflict of interest arising from
status as contingent remainderman and objection to adopted children being
recognized as beneficiaries.
- Carter v. Carter (Illinois)
Court affirms dismissal of surcharge claim against surviving spouse for
investing marital trust assets as trustee in municipal bonds to increase her own
income distributions from trust.
- Estate of Boyar v. Dixon (Illinois)
The doctrine of election applies to a trust and bars claims to invalidate a
trust amendment brought after receiving a distribution.
- Whitman v. Whitman (Ohio)
Appellate court affirms criminal sentence for custodian and trustee who defied
court order and refused to account.
- Damas v. Damas (Ohio)
Beneficiary-trustee did not breach his fiduciary duty by, pursuant to the trust
terms, distributing trust assets to a LLC of which he was a member.
- Cohen v. Cohen, (New York)
Court rejects standing challenge and allows third party claims in connection
with a lawsuit concerning a family limited partnership due to public policy
against the judicial enforcement of illegal contracts.
- Matter of Deneny v. Rossem (New York)
Co-trustee removed for refusal to cooperate and failure to manage trust property
that caused harm to the trust.
- Matter of Chantarasmi (New York)
Constructive trust imposed to enforce premarital agreement.
- Vinton v. Virzi (Colorado)
Appellate court rejects amended fraud claim that added trustee’s attorney as a
party and forcing the attorney to withdraw.
- Waterfield v. The Trust Company of Oxford (Indiana)
Appellate court affirms dismissal of summary judgment for trustee on claims that
beneficiary consents to trust reformation were obtained by fraud where their
mother and grandmother presented the signature pages at a holiday family
here for case details.