In re Rolf H. Brennemann Testamentary Trust

After Kim Abbott, a beneficiary of her grandfather’s trust, learned that the trust had become “non-economical,” she filed a complaint against the trustees, alleging that the trustees had breached their fiduciary duties to maintain trust records, to properly inform and report to the beneficiaries, and to administer the trust in good faith. The county court dismissed the complaint. The Court of Appeals affirmed, concluding that the trustees had breached their duty to inform and report but the breach was harmless. The Supreme Court affirmed in part and reversed in part, holding that the Court of Appeals (1) did not err in ultimately concluding that the trustees’ breach of their duty was harmless; but (2) erred in concluding that the annual schedule K-1 tax reports were sufficient to reasonably inform beneficiaries of the trust and its administration. Remanded.View "In re Rolf H. Brennemann Testamentary Trust " on Justia Law