Law

Know How The Concept Of Release Of Trustee Form Came

When in a contract, will, or certified business proposition, the trustee of the trust so established may ask the beneficiary for the acknowledgment of receiving his/her share according to the trust established legally between them in the form of a proper receipt. As much as the trustee may need the receipt of acknowledgment or the release of trustee form to let go of his established liability, the beneficiary needs to release the trustee from his liability voluntarily. However, the law also says that it is not mandatory for the trustee to ask to be released from his obligation if the split of share is necessarily required by the trust specified.

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How it came into being

This whole law and code were solidified after the Bellows vs. Bellows case. Beverly Bellows had two sons – Fred and Donald – whom he named in his trust to be the holders of his asset after his death. Fred was to be the sole trustee and the remaining assets where to be distributed equally between the both while Donald gets his share as part of a special needs trust. Post their father’s death, Donald filed for his stock to be given to him. Soon after, getting paid his share, Donald’s attorney refused to accept the payment and sent a note accusing Fred and his attorney of “illegally using the trust’s money to pay off his attorney.” Despite being explained why the use of the trust’s money was proper, Fred’s attorney eventually ended up paying the remaining amount. When asked for a receipt to end his liability (once Donald cashed the cheque), after legal consent, but instead got a legal notice from Donald stating that he wanted a complete accounting including the sufficient statements which showed all the transactions after the death of Beverly Bellows, their father. When contested, the court stood by Donald, saying a trustee cannot condition the payment with the acceptance of a receipt and that the distribution was to be made with no strings attached. Furthermore, a trustee should always, upon accepting the trust, fill for a court accounting to try and avoid any such issues.

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