Beneficiary Ratification Of A Trustee’s Unauthorized Act
March 12, 2015
by: Luke Lantta
The trustee-beneficiary relationship can be a little bit like a marriage, so perhaps it’s not surprising that the phrase “speak now or forever hold your peace” has meaning for both. If a trustee commits a breach of trust, a beneficiary may expressly or impliedly demonstrate satisfaction with the wrongful act thereby preventing that beneficiary from later challenging the act. In other words, the beneficiary may ratify the trustee’s wrongful or unauthorized act by expressly agreeing to it or by failing to object to it. In order for a beneficiary to ratify a breach of fiduciary duty, typically there must be proof that the beneficiary had full knowledge of all material facts. All the more reason for trustees to consider giving beneficiaries more information about the trust administration and the trustee’s actions. If the beneficiary gets the material information and
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