Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

A Member of the Law Professor Blogs Network

Monday, April 14, 2014

Interest on Damages for Improper Discretionary Distributions Payable Only from Date of Beneficiary’s Death

States-full-Georgia

The trustee was found liable for making improper discretionary distributions of principal to the sole life income beneficiary of the trust.  The trial court awarded prejudgment interest at the statutory rate from the date of each principal invasion and the intermediate appellate court affirmed. On appeal by the trustee, the Supreme Court of Georgia reversed, holding that interest could be awarded only from the date of the life income beneficiary’s death because had the improperly distributed assets remained in the trust, any interest they would have earned would have been distributed to the life beneficiary.  Reliance Trust Co. v. Candler751 S.E.2d 47 (Ga. 2013).

Special thanks to William LaPiana (Professor of Law, New York Law School) for bringing this case to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/04/interest-on-damages-for-improper-discretionary-distributions-payable-only-from-date-of-beneficiarys-.html

New Cases, Trusts | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef01a3fceed177970b

Listed below are links to weblogs that reference Interest on Damages for Improper Discretionary Distributions Payable Only from Date of Beneficiary’s Death:

Comments

Post a comment