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    Breach of Trustees’ Fiduciary Duty – Part 3: Duty to Administer Trusts Prudently and Duty to Inform, Report, and Maintain Adequate Records

              In Part 2 of this series, we examined trustees’ duties of loyalty and impartiality.  This post will examine the duty to administer trusts prudently and Part 4 will discuss the duty to delegate – or not delegate – in more depth.  The duty to administer trusts involves the basic values of good faith, while the duty to inform, report, and maintain adequate records involves the reasonableness of a trustee’s actions.  While these principals seem straight forward, they are a bit nuanced in practice.     Duty to Administer Trusts Prudently             The duty to administer trusts prudently mandates trustees carry…

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    Rule 11 Sanctions and Incompetency Proceedings

              In Re Cranor began as a straightforward incompetency proceeding, but devolved into a Rule 11 battle between two North Carolina attorneys.[1]  The proceeding centered on a woman named Carole Cranor.  Because of her early onset dementia, Carole had difficulty preparing meals for herself, suffered dehydration, and sustained a fall due to her diminished mental capacity.  As such, she hired a friend and attorney, Harriet Hopkins, to help her choose a long-term care facility and get her affairs in order.  Despite a falling out over their mother’s estate some years back, Frank, Carole’s brother, intervened when he realized Ms. Hopkins drafted a durable power of attorney (“DPOA”)…