Remainder beneficiaries timeline

[Cosmo10]

What is the name of your state (only U.S. law)?Massachusetts
Several years after the creation of an irrevocable trust, the Grantor exercises his Special Power of Appointment to add Remainder Beneficiaries. Do the newly added Remainder Beneficiaries have the right to ask for, and receive, a full accounting of all trust transactions from inception of the trust or only from the date the Special Power of Appointment was given to the Trustee?

 

[LdiJ]

What is the name of your state (only U.S. law)?Massachusetts
Several years after the creation of an irrevocable trust, the Grantor exercises his Special Power of Appointment to add Remainder Beneficiaries. Do the newly added Remainder Beneficiaries have the right to ask for, and receive, a full accounting of all trust transactions from inception of the trust or only from the date the Special Power of Appointment was given to the Trustee?

Definitely not from the inception of the trust, and maybe not even now. They are remainder beneficiaries. They do not become actual beneficiaries until the primary beneficiaries pass away.

 

[justalayman]

. Looking at the Massachusesetts Uniform Trust Code,

''Beneficiary'', a person who has a present or future beneficial interest in a trust, vested or contingent.

but it defines qualified beneficiary as:

''Qualified beneficiary'', a beneficiary who, on the date the beneficiary's qualification is determined:

(i) is a distributee or permissible distributee of trust income or principal; or

(ii) would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.

Section 813. Duty to inform and report

(a) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust. Unless unreasonable under the circumstances, a trustee shall promptly respond to a qualified beneficiary's request for information related to the administration of the trust.

so based on that, it would appear that the trustee has no obligation to inform any beneficiary other than a qualified beneficiary of diddly squat.

now that brings in the question; are we talking of contingent remainder beneficiaries or vested remainder beneficiaries? I believe a vested remainder beneficiary may fall within the definition of a qualified beneficiary while a contingent remainder beneficiary likely would not.

 

[latigo]

What is the name of your state (only U.S. law)?Massachusetts
Several years after the creation of an irrevocable trust, the Grantor exercises his Special Power of Appointment to add Remainder Beneficiaries. Do the newly added Remainder Beneficiaries have the right to ask for, and receive, a full accounting of all trust transactions from inception of the trust or only from the date the Special Power of Appointment was given to the Trustee?

It would solely depend on whether or not given the nature of the request - the timing, availability of past accountings, its degree of burdensomeness, cost, etc., etc., - the request is deemed reasonable under the existing circumstances. To ask to render an accounting of all trust transactions from inception would likely be considered unreasonable, unless there was clear evidence of mismanagement. But each would have to be judged on its own merit and purpose.

HOWEVER, it would NOT depend on when the requesting beneficiary came into being!

The Massachusetts Uniform Trust Code * makes no distinction when a beneficiary is nominated - initially at the formation of the Trust, or subsequently through a power of appointment.

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[*] "A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust. Unless unreasonable under the circumstances, a trustee shall promptly respond to a qualified beneficiary’s request for information related to the administration of the trust. Massachusetts Uniform Trust Code Section 813 (a). Duty to inform and report