Document Type
Article
Publication Title
ACTEC Law Journal
Publication Date
Spring 2025
ISSN
2167-9398
Page Number
187
Keywords
conflict of laws, silent trusts
Disciplines
Conflict of Laws | Law
Abstract
There are good reasons why the settlor of a trust may not wish the beneficiaries of the trust to know of its existence at the time that the trust is created and funded or even for years thereafter. The settlor may not want beneficiaries to learn of the trust's existence until they have matured, accomplished a specific task, become self-supporting, or abandoned prob- lematic or destructive behaviors. In other instances, the settlor may not, in principle, be opposed to the beneficiaries learning about the existence of the trust but does not want to grant direct access to the trust instrument in full or is opposed to any sort of accounting, even if only informal. If the trust favors certain children or grandchildren over others, it could gener- ate internecine conflict if the difference in treatment became known, and thus the settlor prefers keeping the trust silent. Another reason for silence is a concern that financial information will become known by persons who could use the information to impact negatively the assets held in trust or single out family members as targets. The multifold reasons that may propel a settlor of a trust to with- hold trust information from beneficiaries in whole or part has given birth to and fueled the increasing popularity of the "silent trust," also known as the "quiet trust." The terms of the silent trust instrument specify the extent, if any, that the existence of the trust, its provisions, its assets, and the value and performance of those assets will be revealed to beneficiaries and the timing of such reveal
Recommended Citation
Jeffrey A. Schoenblum,
Silent Trusts and the Conflicts of Laws, 50 ACTEC Law Journal. 187
(2025)
Available at: https://scholarship.law.vanderbilt.edu/faculty-publications/1644