Bank of the Ozarks v. Cossey

Bank of the Ozarks was designated as the successor trustee of the Hamilton Family Living Trust. The Trust’s primary beneficiaries were Larry Hamilton and Susan Cossey. The Bank had possession of the Trust’s assets through a custody agreement with the trustees. The Bank sent correspondence to Larry Hamilton rejecting the trusteeship but still reimbursed Hamilton for certain expenses. Cossey later brought a petition for an accounting against the Bank. The circuit court granted the petition, finding that once the Bank reimbursed Hamilton for certain expenses, the Bank accepted the trusteeship by performing duties as a trustee. The Bank appealed, arguing that it had explicitly rejected the trusteeship and was thus not required to perform an accounting. The Supreme Court affirmed, holding that the Bank accepted the trusteeship by exercising powers as a trustee. View "Bank of the Ozarks v. Cossey" on Justia Law