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Scalp & Blade v. Advest

A recent appellate court decision in New York allowed a trust fund to bring a claim for the profits it would have earned if its account had been invested so as to track the S&P 500.  Given this precident, little imagination is needed to foresee how ILIT trustees will be liable ILIT to trust beneficiaries for the difference between death benefits actually received versus the death benefits that “should have been received” under the Uniform Prudent Investor Act (UPIA) unless suitability is properly documented.

You can read the full case record here, or an executive summary here.

Our thanks to Steve Leimberg for contributing his Estate Planning Newsletter #601 for the above executive summary.  Leimberg Information Services (LISI) is a monthly subscription service providing financial service professionals fast, frank, and incisive analysis of proposed and recent legislation, regulations, cases, and rulings.  LISI is also home to a powerful engine for customized searches and past and future cases.  For more about LISI and Leimberg’s Estate Planning Newsletters, go to