Duty to Inform Beneficiaries

Development of Duty

1. Before January 1, 2006

Trustee had a common law duty to disclose:

▪ Upon beneficiary’s request.

▪ Trustee about to take a material unusual action.

Development of Duty

2. January 1, 2006 to June 15, 2007

Former § 113.060 imposed on the trustee a duty to keep beneficiaries reasonably informed of:

▪ Trust administration, and▪ Material facts necessary for beneficiaries to

protect their interests.

Problems with this duty?

Development of Duty

3. Beginning June 15, 2007

Statutory duty repealed Common law duty restored.

Development of Duty

3. Beginning June 15, 2007

When settlor may limit common law duty under § 111.0035(c):

▪ Trust is revocable, or▪ Beneficiary is under age 25, or▪ Beneficiary is not eligible for (1) current

distribution or (2) distribution if trust were to terminate now.