Loring and Rounds: A Trustee's Handbook, 2013 Edition Charles E. Rounds, Jr., Charles E. Rounds, III | Wolters Kluwer Law & Business

Chapter 1. Introduction

Chapter 2. The Property Requirement

§2.1 The Property Requirement §2.2 Funding Issues §2.3 Wrongful Defunding

Chapter 3. The Trustee's Office

§3.1 Who Can Be a Trustee? §3.2 Who Is Fit to Be a Trustee? §3.3 Involuntary Trustees: Constructive Trusts, Purchase Money Resulting Trusts, Trustee Succession, Deceased Trustees, Partnership Assets, Government Regulation of Property Ownership and Other Such Matters §3.4 Avoiding, Assuming, and Vacating the Office §3.5 Trustee's Relationship to the Trust Estate §3.6 External Inbound Liabilities of Third Parties to the Trustee and the Beneficiaries

Chapter 4. Interests Remaining with the Settlor

§4.1 Interests and Powers Remaining with the Settlor by Operation of Law §4.2 Expressly Reserved Beneficial Interests and Powers

Chapter 5. The Beneficiary

§5.1 Who Can Be a Beneficiary? §5.2 Class Designation: “Children,” “Issue,” “Heirs,” and “Relatives” (Some Rules of Construction) §5.3 The Beneficiary's Property Interest §5.4 Rights of the Beneficiary §5.5 Involuntary or Voluntary Loss of the Beneficiary's Rights §5.6 Duties and Liabilities of the Beneficiary §5.7 The Necessary Parties to a Suit Brought by a Beneficiary

Chapter 6. The Trustee's Duties

§6.1 General Duties §6.2 Specific Duties Incident to General Duties §6.3 Governmental Reporting Obligations

Chapter 7. The Trustee's Liabilities

§7.1 Trustee's Liabilities Generally (Breaches of Trust; Beneficiary's Standing to Seek Judicial Relief; Defenses) §7.2 Trustee's Internal Liability as Fiduciary to the Beneficiary §7.3 Trustee's External Liability as Legal Owner to Nonbeneficiaries §7.4 Trustee's Discharge in Bankruptcy

Chapter 8. Miscellaneous Topics of General Interest to the Trustee

§8.1 Powers of Appointment §8.2 Termination of the Trust and Final Distribution §8.3 The Transfer of Trust Property §8.4 The Trustee's Compensation §8.5 Conflict of Laws §8.6 Qualifying the Non-Human Being to Serve as a Trustee; Corporations Domestic and Foreign; Partnerships §8.7 Merger §8.8 Whom Does Counsel Represent? §8.9 Why More Than One Trust: The Estate and Generation- Skipping Tax §8.10 Fiduciary Principles Applicable to the Mutual Fund §8.11 What Are the Duties of the Trustee of a Revocable Inter Vivos Trust? §8.12 Where the Trust Is Recognized outside the United States §8.13 In Litigation Pertaining to a Trust, When Is the Beneficiary Entitled to Reimbursement from the Trust Estate for Legal Fees? §8.14 When a Guardian ad Litem (or Special Representative) Is Needed: Virtual Representation Issues §8.15 Doctrines Ancient and Modern §8.16 The Trustee of Revocable Trust as “Inadvertent Executor”: When There Is a Duty to Prepare the Estate Tax Return §8.17 Mistake-Based Trust Reformation or Modification Actions to Achieve Tax-Efficiency Trust Reformation to Remedy Mistakes; Trust Modification; Tax Objectives §8.18 Regulation 9 Revised §8.19 When the Bank Trustee Merges or Consolidates §8.20 Tax Apportionment within and without Trust §8.21 Duty of Third Parties to Investigate Whether Trustee Has Power to Act or Is Properly Exercising the Power §8.22 Why Do We Need the Trust When We Have the Corporation and the Third-Party Beneficiary Contract? §8.23 How a Trust Can Facilitate Gifts to Minors §8.24 Burdens of Proof; Standards of Proof §8.25 Few American Law Schools Still Require Agency, Trusts, and Equity §8.26 Why Trustees Need to Know about Will Residue Clauses §8.27 The Difference between a Legal and Equitable Life Estate, between a Legal and an Equitable Reversion, between a Legal and an Equitable Springing Interest, and between a Legal and an Equitable Shifting Interest §8.28 The Bishop Estate Controversy §8.29 Is a Custodial Parent the Trustee of Child Support Payments? §8.30 The Difference between a Vested Equitable Remainder Subject to Divestment and a Vested (Transmissible) Contingent Equitable Remainder §8.31 The Franklin Trust (Boston) §8.32 Can the Trustee Escape Liability for Making a Mistake of Law If He Acted in Good Faith on Advice of Counsel? §8.33 Is the Level of an Uncompensated Trustee's Duty of Care Lower Than That of a Compensated Trustee? §8.34 When an Employer Identification Number (EIN) Is Not Required §8.35 The Hershey Trust §8.36 May the Trustee Represent the Trust in the Federal Courts without Counsel? §8.37 The Origin of the English Trust §8.38 The Warren Trust (a.k.a. The Mills Trust) §8.39 Settlor's Choice of Law as to Meaning and Effect of Terms of Trust §8.40 Judicial Jurisdiction Over Trustee, Beneficiary and/or the Trust Property; Venue Issues; Subject Matter Jurisdiction §8.41 What Is to Be Done with Net Income When There Is No Current Beneficiary? §8.42 What Is the Difference between a Complaint (Petition) for Instructions and a Complaint (Petition) for Declaratory Judgment? §8.43 Who Is the Settlor of the Trust? §8.44 Mediation and Arbitration Have Their Limitations When It Comes to Trust Disputes §8.45 What Is the Difference between a Good-Faith Purchaser for Value (BFP) and a Holder in Due Course? §8.46 Proof of Facts in Trust Litigation

Chapter 9. Special Types of Trusts

§9.1 The Grantor Trust §9.2 The Irrevocable Life Insurance Trust §9.3 The Disability/Special Needs/Supplemental Needs Trust §9.4 The Charitable Trust §9.5 Trusts for Deferring Taxation of Income §9.6 Business Trusts; Trusts That Generally Function Like Corporations or Agencies §9.7 Commingled Trust Funds §9.8 Quasi-Trusts, Hybrids, and Virtual Trusts §9.9 False Trusts §9.10 The Offshore Asset Protection Trust §9.11 The Bankruptcy Trustee §9.12 The Condominium Trustee §9.13 The Unitrust §9.14 The Qualified Domestic Trust (QDOT) §9.15 The Qualified Personal Residence Trust (QPRT) §9.16 Statutory Trusts §9.17 I.R.C. §2503(c) Trusts for Minors §9.18 The Crummey Trust §9.19 Blind Trusts in the Public and Private Sectors §9.20 The Gallo Trust §9.21 Alaska's “Community Property Trust” §9.22 Medicaid Qualifying Trust §9.23 S Corporations; Qualified Subchapter S Trusts (QSSTs); Electing Small Business Trusts (ESBTs) §9.24 The Incentive Trust (and the Public Policy Considerations); Marriage Restraints; Provisions Encouraging Anti-Social Behavior §9.25 The Joint Trust §9.26 The Marital Deduction Trust (Including the QTIP Trust) §9.27 The Purpose Trust §9.28 The Domestic Asset Protection Trust (DAPT) §9.29 The Adapted Trust §9.30 Marriage Settlements (England) §9.31 Corporate Trusts; Trusts to Secure Creditors; The Trust Indenture Act of 1939; Protecting Bondholders §9.32 The Ancillary Trusteeship

Chapter 10. The Income Taxation of Trusts

§10.1 Introduction to the Fiduciary Income Tax §10.2 Trust Income §10.3 Deductions (Fiduciary Income Tax) §10.4 Fiduciary Income Tax and Payments §10.5 Practical Information Relating to the Fiduciary Income Tax §10.6 Final Word on the Fiduciary Income Tax §10.7 Income Taxation of Business Trusts

Chapter 11. Tax Basis/Cost of Trust Property

§11.1 Tax Basis/Cost of Trust Property—A General Introduction §11.2 Tax Basis of Trust Inception Assets §11.3 Tax Basis of Trust Property While in Trust §11.4 Tax Basis of Trust Distributions out of Trusts §11.5 Recent Developments in the Law (Tax Basis Determination)

Table of Cases

Table of Restatements

Table of Uniform Acts

Index