Family Governance Curriculum

Trust formation requires lawful purpose, documented authority, and intentional structure. The trust instrument establishes the governance framework.

Settlor, trustee, trust property, lawful purpose, and identifiable beneficiaries. Each element creates obligations and enforceable rights.

Draft trust instrument with: identification of parties, statement of intent, trust property schedule, distribution provisions, trustee powers, and amendment procedures. Execute with formalities required by governing law.

Fiduciary duty comprises loyalty, care, impartiality, and disclosure. These duties are non-waivable and enforceable by beneficiaries.

Act solely in interest of beneficiaries, avoid self-dealing, refrain from conflicts of interest. Any transaction with trust must be transparent and fair.

Prudent administration, investment oversight, recordkeeping, and professional standards. Delegation requires careful selection and supervision.

Record precedes recognition. The administrative record is the foundation for enforcement, review, and continuity.

Maintain trust ledger, asset schedule, meeting minutes, correspondence log, fiduciary reports, and succession documentation.

Permanent retention for trust documents, dispositive instruments, and fiduciary accounts. Digital preservation with redundancy and access controls.

Continuity requires designated successor trustees, clear triggering events, and documented transition procedures.

Resignation, incapacity, death, removal, or disqualification of acting trustee. Define standards and verification method.

Inventory and delivery of trust assets, records, and authorities. Accounting upon transition. Court notification if required.

Beneficiaries have enforceable rights: information, accounting, distribution, and removal for cause.

Trust instrument copy, annual reports, tax information, and material transaction disclosure upon reasonable request.

Written responses within 30 days. Formal accounting at least annually. Document all beneficiary communications.

Trustee must account for all receipts, disbursements, gains, losses, and distributions. The accounting is a fiduciary instrument.

Schedule of assets, beginning balance, receipts, disbursements, distributions, ending balance. Separate principal and income.

Annual accounting to all qualified beneficiaries. Additional accounting upon demand, transition, or termination.

Procedure precedes remedy. Formal dispute resolution preserves relationships and enforces rights.

Written notice of dispute, response period (min 14 days), negotiation or mediation before litigation.

Judicial accounting, surcharge for breach, removal of trustee, constructive trust, equitable lien, or damages.

Governance must survive generations. Document values, decision frameworks, and educational requirements.

Establish family council, meeting schedule, voting procedures, and conflict protocols. Document decisions.

Train successors in fiduciary literacy, trust administration, and governance discipline before assumption of duties.