Considerations for Administering Closely Held Business Assets in Trust

By WealthCounsel Staff on Aug 6, 2021 10:00:00 AM

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Written by: REBECCA KLOCK SCHROER, JD, & MORGAN WIENER, JD

Trustees face a number of complexities when administering a trust that owns interests in a closely held business. This article focuses on two of those complexities:

(1)  Which standard of care applies to the trustee’s business decisions: the fiduciary or the corporate standard of care?

(2)  What is the trustee’s obligation to produce information about the business to the trust’s beneficiaries?

Because there is no national consensus on either of these issues, this article will first provide an overview of each issue and then review leading cases exemplifying the different approaches taken by courts.

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The Often Forgotten Fiduciary Income Tax Obligations of Trusts

By WealthCounsel Staff on May 28, 2021 10:00:00 AM

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Although trusts are effective estate-planning tools used to avoid probate and minimize estate and gift taxes, their income-tax implications must also be considered to ensure that there are no unintended tax consequences. The drafting attorney should point out the advantageous and disadvantageous fiduciary income-tax implications for the type of trust being considered and then determine which trust is the best fit for the client. 

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Navigating the Trust Administration Journey

By WealthCounsel Staff on May 21, 2021 10:00:00 AM

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Navigating a postdeath trust administration can be daunting, and attorneys must have the necessary skills, knowledge, and competence to diligently and effectively provide legal services to fiduciary clients during this process.

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