Duty to inform & report
Certain state laws may impose a duty upon the trustee to keep certain beneficiaries reasonably informed regarding the trust administration so that they may protect their interests in the trust. To comply with this duty, trustees may be required to send notification letters and/or account statements to such beneficiaries.
Scope of beneficiaries
State laws are not consistent in regards to the scope of beneficiaries that must receive these notification letters and/or account statements.
For instance, some state laws require the trustee to provide notice only to the current beneficiaries; while others require the trustee to provide notice to all qualified beneficiaries (current beneficiaries as well as the individuals who will become beneficiaries of the trust upon the death of the current beneficiary (i.e. first line remainder beneficiaries)).
Default rules
State laws may also have additional mandatory rules that limit an attorney's ability to alter or modify these laws by placing explicit provisions regarding notice in the trust document.
Due to these variations in state law, attorneys are encouraged to review the state laws that will govern the administration of the trusts they draft to confirm that the scope of disclosure is consistent with their clients' intentions.
If Missouri is to be the governing law for trust administration matters, attorneys should review Chapter 456 of the Missouri Revised Statutes (in particular Section 456.1-105 and 456.8-813) to make this determination.
Contact your professional resource partner
Please feel free to contact Edward Jones Trust Company with any questions about our services at 1-800-445-7224. Our team of Business Development associates and legal and tax professionals are here to assist you with any of your trust development needs.
To learn more about how to help your clients reach their financial goals, contact your local Edward Jones financial advisor today.
Important Information:
Trust and related services are provided by Edward Jones Trust Company, an affiliate of Edward D. Jones & Co., L.P. (Edward Jones), a registered broker-dealer. Edward Jones Trust Company and Edward Jones are subsidiaries of the Jones Financial Companies, L.L.L.P. Edward Jones Trust Company may use Edward Jones or other affiliates to act as a broker-dealer for transactions or for other services. Payments of such services may be charged as an expense to the trust and will not reduce the amount of fees payable to Edward Jones Trust Company.