This guest post is from Abigail Hilburn, Regent Law 3L:
A trust enables a third party, the trustee, to take care of assets on behalf of a beneficiary. However, this fiduciary arrangement crumbles when the trustee is no longer trustworthy. The circumstances surrounding the trust established by Princess Bernice Pauahi Bishop (“Princess Bishop”) exemplify the necessity of trustee integrity and accountability.
This situation presents two takeaways. First, the possible need for additional accountability for trustees of charitable trusts. Second, the desperate importance of appointing honorable trustees who possess the utmost integrity in addition to having a system in place that continually ensures your trust is in good hands 136 years later. For a more in depth analysis and discussion, see Of Princesses, Charities, Trustees, and Fairytales: A Lesson of the Simple Wishes of Princess Bernice Pauahi Bishop by Judge Robert Mahealani M. Seto and Professor Lynne Marie Kohm, 1 Hawaii L. Rev. 393 (Winter 1999).
Protecting your family and your estate with a trustful
trustee cannot be underestimated. I’m
sure Princess Bishop would echo that sentiment.
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