## Facts

- Elinor Leh Fletcher created a revocable inter vivos trust in 1985, naming herself grantor and trustee and transferring assets identified on an attached Schedule A.
- In 1993, Elinor amended the trust to provide that, upon her death, multiple trusts would be created, including three separate $50,000 trusts for her adult son, James N. Fletcher, Jr., and his two children.
- The amended trust named Henry L. Fletcher and a bank as successor trustees upon Elinor’s death and gave them discretion to spend income and principal for medical insurance and medical care (and similarly for the grandchildren’s trusts).
- After Elinor’s death, James received only partial pages of the trust documents and requested complete copies of the trust agreement, the amendment, Schedule A, and information about a “new” trust holding the assets.
- The trustees refused to provide the complete documents, asserting Elinor had orally directed confidentiality even as to beneficiaries, but they provided periodic accountings for the $50,000 sub-trusts.
- James filed suit to compel disclosure of the governing instruments and related documents.

## Issues

1. Whether trustees must disclose to a beneficiary complete copies of the trust agreement, amendments, and the schedule of trust assets when the settlor allegedly instructed confidentiality.
2. Whether trustees may limit disclosure on the theory that their fiduciary duties run only to a beneficiary’s sub-trust rather than to the trust arrangement creating and funding that interest.

## Decision

- The Supreme Court of Virginia affirmed the order compelling disclosure.
- The trustees were required to provide James complete copies of the trust agreement, the amendment, and Schedule A, along with the related trust instruments identified in the pleadings.
- Alleged oral instructions from the settlor to keep the trust confidential did not excuse compliance with the trustees’ disclosure obligations.
- The existence of separate $50,000 sub-trusts did not justify withholding the governing documents and asset information needed for James to understand and protect his beneficial interests.

## Legal Principles

- A trustee must provide beneficiaries information reasonably necessary to enforce their rights under the trust and to prevent or redress a breach of trust.
- Although a trust’s terms may regulate the amount and frequency of routine information, a beneficiary is always entitled to information needed to protect the beneficiary’s interest.
- Trustees owe beneficiaries an undivided duty and may not administer a trust in secrecy that prevents beneficiaries from learning the nature of the trust property and the details of administration.
- A settlor’s alleged oral confidentiality instructions cannot negate fiduciary duties imposed by law, including the duty to furnish necessary information.

## Conclusion

The court held that a beneficiary is entitled to complete governing trust documents and the schedule of trust assets when necessary to understand and enforce trust rights, and trustees cannot rely on alleged oral secrecy directives or sub-trust structuring to withhold that information.


Fletcher v. Fletcher, 253 Va. 30, 480 S.E.2d 488 (Va. 1997)