ACTEC Trust & Estate Talk How Typical Trust Agreements Clauses Can Get Turned Around in the Real World
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Dec 17, 2024 Explore the intricacies of trust agreements, revealing potential misinterpretations and conflicts among beneficiaries. Discover legal complexities surrounding conditional bequests linked to religious marriages, including gender disparities. Learn how to navigate beneficiary disputes and underscore trustee accountability to stave off conflicts, with insights from a Massachusetts case. Finally, delve into jurisdictional challenges in trust agreements, illustrated by a compelling case study that highlights the importance of maintaining intended court jurisdictions in legal disputes.
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Enforceability of Religious Marriage Conditions
- Conditional bequests requiring marriage within a certain faith are generally enforceable as they limit who a beneficiary can marry to retain benefits.
- However, if the condition encourages divorce, courts tend to invalidate it to avoid promoting marital disruption.
Manage Beneficiary Conflicts Proactively
- Discuss with clients how much trust information presumptive beneficiaries should receive when the current beneficiary is also the trustee.
- Avoid pot trusts if worried about beneficiary conflicts and constant oversight between current co-beneficiaries.
Delaware Trust Situs Dispute Anecdote
- The Delaware case involving the Kloiber Dynasty Trust shows how trust situs selections can fail when courts find equitable reasons to assert jurisdiction elsewhere.
- Despite trust provisions to prevent interference, courts can view situs choice as temporary, especially amid divorce-related asset disputes.