Message from the Firm
By Fred Reish
My law firm has recently begun publishing a series of newsletters concerning fiduciary litigation and fiduciary responsibility at all levels. These newsletters cover both state and federal governance of fiduciaries. They cover fiduciaries for trusts, probate estates, retirement plans, and positions of high trust.
This is our second fiduciary newsletter. The first dealt with fiduciary litigation; this newsletter focuses on tips for fiduciary compliance and for the avoidance of disputes. (For a copy of the first newsletter, go to www.reish.com/publications/pdf/trustestlitnov07.pdf.)
We have begun writing these newsletters because we believe that fiduciary relationships will be coming under greater scrutiny. There are a number of reasons for that. For example, the “greatest generation” —the World War II generation—is transferring its wealth to the baby boomer generation. Much of that transfer will occur in a fiduciary arrangement, such as trusts (which are regulated by state fiduciary laws). The baby boomer generation is advancing in age, with the first boomers reaching the early social security retirement age. That generation will depend heavily on participant-directed retirement funds that are managed by federally regulated fiduciaries and individual retirement accounts (where investments and relationships are regulated by both state and federal law).
Unfortunately, where there is money, there is trouble. And, trouble spells litigation.
Further, there seems to be even more trouble where the money is managed by third parties for the benefit of others. As a result, we see a rapidly expanding industry of fiduciary management which, in turn, means there is a need for education to help the fiduciaries and there is a need for litigation to protect the beneficiaries.
Going forward, we believe that both fiduciary education and litigation will be an important part of our law firm’s practice, as well as the practice of many other firms.
These newsletters will put the emphasis on education, which will hopefully reduce the need for litigation.
Reprinted with permission,
© 2008 Reish Luftman Reicher & Cohen, A Professional Corporation. All rights reserved. The Fiduciary Practice Report is published as a general informational source. Articles are general in nature and are not intended to constitute legal advice in any particular matter. Transmission of this report does not create an attorney-client relationship. Reish Luftman Reicher & Cohen does not warrant and is not responsible for errors or omissions in the content of this report.
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