At common law, trustees had a fiduciary duty not to delegate tasks they can perform themselves. However, our current financial system’s increasing complexity makes it unreasonable for many trustees to manage trust assets on their own. The opportunities for investments are endless, and the sophistication of even basic financial instruments has increased since the creation of the common law duty not to delegate tasks. As a result, it is often in the best interests of all parties – including the trustee – to enlist the help of experienced professionals who can assist with investment decisions. Doing so ensures the trust’s assets are financially productive and protected. When delegating his…
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Removal of Corporate Trustees in North Carolina
The landscape of the American economy changed dramatically in the last decade, particularly due to the 2008 financial crisis. America’s largest commercial banks were forced to sell assets, reorganize, shake-up top management positions, and/or close altogether. As a result, trusts managed by corporate trustees experienced high turnover among trust officials and changes in corporate ownership. While there are many advantages to hiring a corporate trustee, unsatisfied beneficiaries find it difficult to remove them, absent a flagrant breach of duty or express language in the trust document. While many corporate trustee relationships are positive, some beneficiaries become frustrated by a lack of control when confronted with mediocre…