Sterling Case Offers Valuable Trustee Incapacity Insight

Law360, New York (October 24, 2014, 12:18 PM EDT) -- The ideal individual trustee has a wide variety of real-world experience and judgment that can only be acquired over decades. Thus, many trustees are middle-aged or older at the start of their tenure. While some people remain vibrant and cognitively intact as they live beyond middle age, it is likely that some older trustees will experience lapses of memory, progressive stages of dementia, Alzheimer's disease or other forms of mental incapacity that will impair their ability to discharge their fiduciary duties or render them altogether incapable of acting as a trustee. Therefore, the provisions within trust instruments that govern the removal of incapacitated trustees are becoming more important and deserving of considerable attention. Although there are no templates that will solve all the problems associated with trustee incapacity, the starting point is to consider the issues that may arise and alternative ways that they can be addressed....

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