Who´s In Charge? Oregon Case Examines "De Son Tort" Vs. "De Facto" Trustees

In the context of an invalid appointment of a successor trustee, the Oregon appellate court in Allen Trust Co. v. Cowlitz Bank, 152 P.3d 974 (Or. Ct. App. 2007) recently grappled with the question of what it means to be a "trustee de facto" — and what kinds of fees and attorney expenses such a trustee might demand.

In this case, Ronald and Jean Harriman established a trust in 1995 as part of their divorce proceedings. The trust, which was for their benefit, allowed the acting trustee to name successor trustees if the acting trustee was unable to serve. After the original trustee died without naming a successor, Ronald and Jean agreed to the appointment of a man named Arlie Hutchins as the trustee. After Hutchins accepted the office, he designated a person — whom the court simply identifies as "Wilkins" — as successor trustee, and designated one of Ronald and Jean's daughters, Valerie, as the next successor