Sheppard Mullin: Guidance for Trustees During COVID-19 Pandemic (Apr. 17, 2020)

Adam Streisand, of Sheppard Mullin, has published an article, Guidance for Trustees During COVID-19 Pandemic (Apr. 17, 2020). His article begins as follows:

The global health pandemic is a crisis affecting the health and well-being of our citizens, and a financial crisis of unknowable breadth and duration. We are all in crisis to one degree or another and trustees of private trusts face conditions and decisions once unthinkable. Trustees will be called upon to make the most difficult decisions of their tenures, including investments, management of trust assets, cost measures and decisions about distributions to beneficiaries.

No one has a crystal ball. No one can make predictions or decisions based upon analytics or historical data. There is no precedent. One thing can probably be stated with some degree of certainty, however, is that the decisions trustees make during the pandemic will be criticized and challenged by beneficiaries, because outcomes will likely have to be evaluated based upon how they fared under extreme circumstances.

Topics covered include the following:

  • Communication.
  • Process.
  • Petitioning the court for instructions.
  • Notice of proposed action.
  • Accountings.
  • Concentrated positions.
  • Conflicts.
  • Expenses.
  • Trigger clauses.
  • Succession.

To see full article, click: Guidance for Trustees During COVID-19 Pandemic | Lex Arbitri

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.

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