Yet, I don t want to turn them down. I would like your insight. We agree with your concerns. Trustees are fiduciaries who have a duty to act in the best interests of beneficiaries, and today, lawsuits are waiting to happen because the duties and responsibilities of fiduciaries are often poorly understood by both trustees and beneficiaries who, as here, will receive windfall benefits from unexpected sources. People who establish trusts are called settlors .
Trusts own and control property under terms established by the settlers.
Once property is placed in the trust, the trustee holds legal title for the benefit of the beneficiaries who have equitable interests in that property. Each trust should specifically state its purpose, the identity and share of each beneficiary, the specific property to be placed in the trust, the duties of the trustee, and the identity of the trustee. One of the greatest risks today is the trustee s responsibility to invest trust property prudently. Should the investments not perform, the trustee can be sued. The standard, we are afraid, is somewhat hazy as hindsight is always 20-20.