The Question: Does ERISA shield co-trustees
from liability if a pension fund's board of trustees does not question the investments made or the methods of allocation until after the fund suffered losses?
c) innocent co-trustees
are entitled to be indemnified by their fraudulent cotrustees ('single fraudulent wrongdoer rule'); (50) and
Also, having co-trustees
usually means having each of them sign every piece of paper or document affecting the trust.
A potential compromise is for the grantor to be co-trustee
Mr Williams said the most serious aspect of the case involved a trust fund of which Ms Cheong was co-trustee
A Blended Approach with an Independent Trustee as Either a Successor Trustee or an Originally Appointed Co-Trustee
in no event may a co-trustee
who is also a beneficiary be permitted to make decisions regarding discretionary distributions from the trust.
In particular, LFC and Robert Lawson hid from the bond purchasers that Robert Lawson, in his role as co-trustee
of the charitable trust account, and with the knowledge of his wife, was transferring those millions from the charitable remainder trust account to various parties associated with the bond borrowers when the borrowers couldn't pay their operating expenses and, for certain of the bonds, couldn't make the required interest payments on the bonds.
10) However, the Treasury Regulations provide that a gift will not be complete for gift tax purposes if certain powers are retained by the settlor as a trustee, or in some situations as a co-trustee
, until the retained interest or power is relinquished.
The independent trustee could act as the sole trustee, or, if the couple wishes to retain more control, the independent trustee could instead act as a co-trustee
with the beneficiary.
Yukio Sakamoto, co-trustee
of Elpida, also welcomed the agreement, saying it would ensure creditors repayment and will help simplify approval for Elpidaa[euro](tm)s reorganisation by creditors and the Tokyo court.
Use of an institutional trustee together with an individual co-trustee
who is either a family member or friend will avoid the undue pressure that can be placed on an individual trustee by beneficiaries demanding distributions that are inconsistent with trust objectives.