Beneficiaries of a large trust are unable to move the trust to a different trust company because the agreement they signed with the current trustee requires all 94 beneficiaries to consent to the change of trustee.  The beneficiaries are displeased because the bank has had poor investment returns.  The beneficiaries have sued the bank.

Several lessons can be learned:

1.  Trust documents should allow for the removal of a trustee by a majority of the beneficiaries.
2.  If the trust allows for separate shares for each beneficiary, that beneficiary should be permitted to select his own corporate trustee.
3.  In Ohio, poor investment performance is not grounds for removing a trustee in a lawsuit which makes lessons 1 and 2 more important.

Jon and Eileen Gallo (yes, of those Gallos) offer advice on raising financially responsible children.   Seven characteristics shared by parents include:

• Being optimistic about changing money behaviors
• Valuing financial savvy and financial intelligence
• Thinking about the meaning of money in their lives
• Educating their children financially.
• Recognizing that their money deeds have a strong impact on their kids.
• Feeling that children should hear “no” and “enough” in terms of money education
• Wanting children to work for a sense of satisfaction as opposed to money.

USA Today wrote about the complexity of planning for blended families with a dizzying number of familial situations.  What the article did not mention is that a trust could be used to address all of the concerns of the individuals.  Simply, a trust can be used to retain assets for a second spouse while ensuring that assets are ultimately distributed to children from a prior marriage.  Similarly, trusts can be more flexible in making differing allocations among beneficiaries.

Interesting statistic form the article.  Of people who live past 85, one half will experience Alzheimer’s disease.

When declining to serve as guardian of a friend’s child, it is best to answer in terms of the increased family size of the restrictions placed by current housing.  Do not follow the example in an old Carol Burnett Show skit where a couple decided to act obnoxious and asocial with atrocious dinner manners so they would not be asked.  The other couple asked eventually because “you act just like we do.”