Trustees have a multitude of duties, including making
appropriate distributions to designated beneficiaries under the
terms of the trust. While trust instruments often reference
ascertainable standards like health, education, maintenance, and
support, they typically leave the ultimate determination to the
trustee's judgment.
Recent litigation provides valuable guidance on what information
trustees may – or must – consider in making
distribution decisions.
Investigating beneficiary resources
The trust instrument is the guide star in determining
appropriate distributions, but trustees also must determine what
outside facts, such as other resources available to a beneficiary,
should be considered. In Bosch v. Kirkby, an Illinois court upheld
a trustee's denial of distributions to pay for nursing home
care where the beneficiary had over one million dollars in other
assets. In Bosch, the language of the trust provided that the
trustee was required to consider all
