Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
***Generally |
Controlled by New York Fiduciary Powers Act (FPA) -- controls trustee and executor/administrator actions
Trustee can do anything Except: -- 1) self-dealing -- 2) borrow money -- 3) continue running a business in trust property |
|
|
***Self-Dealing |
Trustee CANNOT:
1. buy or sell trust assets to himself
2. borrow trust funds
3. lend money to the fund
4. profit from trusts (except mgmt fees) --- take adavantage of confidential info
5. buy own stock as trust investment
Note: this also applied to relatives and business associates of the trustee
NO Further Inquiry Rule: -- automatic wrong -- no further inquiry needed -- no GF or reasonableness defenses |
|
|
***Affirmative duties & Self-Dealing |
Duty to:
-- segregate personal assets from trust asstes ---- if comingled, loss will come from trustee money and wins will be attributed to trust |
|
|
***Remedies for Breach of Fiduciary Duty |
1. removal
2. B can ratify transaction and waive breach
3. sue for loss and recover losses (surcharge) |
|
|
***Self-Dealing and BFPs |
B can't go after the BFPs |
|
|
***Exculpatory Clauses |
-- CANNOT be used in testamnetary trust -- void as against public policy
-- CAN be used for intervivos/lifetime |
