Monday, February 21, 2011

Payment of Attorney’s Fees to Putative Trustee from the Trust under Texas Law

Question : Can a trustee, whose standing as trustee is being challenged by a beneficiary of the trust, use trust assets and income of that trust to pay for its defense of that suit? 
Short Answer: When the suit is to defend the trust property and a trustee acts reasonably and in good faith, the trustee may get reimbursement for the litigation expenses from the trust assets.  However, when defense of the suit does not benefit trust property, such as expenses related to litigation resulting from the fault of a trustee, the trustee cannot get reimbursement for the litigation expenses from the trust assets.
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1 comment:

Unknown said...

Thanks for good informations,,,,,,,,,

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