Last Month's Q&A: Answered!

The following question appeared in the Q&A section of Banking Spectrum's September 2013 Report Bulletin.

Compare your answer to the correct answer provided below.

Q: What is the rule for the exercise of powers by trustees and other fiduciaries in wills, trusts or other similar documents?  And where can I find the authority for such conduct?

A: The bank should adhere to the language in the trust or will that may recite who and how many shall act.  If the document is silent as to the exercise of fiduciary powers, the general rule is that if there are two fiduciaries, they must act together.  If three or more, then a majority of the fiduciaries are empowered to act.  For example, if there are three trustees, a majority must act and if one dies and two are left, then the two surviving trustees must act together, unless the instrument states otherwise.  Look at the NYS Estates Powers and Trusts Law (“EPTL”) section 10-10.7.