Shari A. Levitan and Stacie Polashuk Nelson, of Holland & Knight, write about lessons about trustee incapacity that can be taken from the Donald Sterling case. Key points they discuss include the following:
- The dispute between Donald and Shelly Sterling focused on the issue of whether Shelly Sterling followed the steps required in the trust to remove her husband as trustee on the grounds of his incapacity. The Sterling case raised other interesting issues as to the relevant degree of capacity required for certain actions and the time at which the measure of capacity was taken.
- Most trusts and many operating agreements for limited liability companies and partnership agreements contain trustee removal and succession powers. Each and every provision in a trust instrument may be crucial under certain circumstances and should be given careful consideration to avoid future disputes.
Read their full article at The Donald Sterling Case Provides Valuable Trustee Incapacity Insights | Alerts & Newsletters | Holland & Knight.