“A Multigenerational Trust – a Case”


- Charles W. Ranson

Interview with Chuck Ranson, Expert Witness in Wealth Management, at Charles W.

Ranson Consulting, Inc.

What kind of cases have you been working on?


Well, since 2011, I have worked on over 30 cases dealing with breach of fiduciary duty.
This can involve duty of impartiality, the duty to account, or duty to diversify. But also the
fiduciary duties of loyalty, candor, and fair disclosure.

I have also rendered opinions in cases involving challenges to the amount of a trustee’s
fee. In so doing, I have been engaged by both plaintiff and defense counsel.

Where do you normally get your expertise requests from?


In the past five years I have received over 150 inquiries from plaintiff or defense firms
seeking my expert services, and I have chosen to accept only 30 cases. You should know
I’m very selective of the cases I choose to work on and I carefully analyze the facts of
each case before determining whether I can be of value in the case.

Whether I’m retained by the defense firm or the plaintiff firm, my opinions are based
entirely on the facts and evidence within the case file and bolstered by my education,
training, and experience.

Are there examples of successful cases?


Yes, in fact in 2013, I was engaged by plaintiff’s counsel, a firm that represented two
income beneficiaries of a $1.9 billion complex inter-generational family trust. The trust
was created and funded in 1940 with shares of the family company. The terms of the
testamentary trust stated that all income should be distributed equally to the blood
descendants of the grantor.

In 2002, the trustees, with the beneficiary’s consent, established the LLC that would
receive special distributions from the operating company.  In 2002, a distribution of $100
million was made to the LLC; in 2005, a $75 million distribution was made to the LLC; and
in 2010, $100 million was distributed to the LLC. The family and corporate co-trustees
established the LLC to build up a fund for the purpose of paying taxes at the time the
trust ended.

Income beneficiaries with children who would become either income or remainder
beneficiaries were to receive the benefit of the LLC’s holdings. Two of the current income
beneficiaries did not have children and, given their life expectancy, would not receive the
benefits of the distributions made to the LLC.

In this case, I wrote an expert report, and was deposed by opposing counsel. After all of
the plaintiff’s experts were deposed, the income beneficiaries without children reached an
amicable settlement with the co-trustees.

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