“Virginia Supreme Court: Arbitration Clauses in Trusts Are Not Enforceable Against Beneficiaries”

“It might come as no surprise that many settlors and advisors seek to include [an arbitration] clause in their trusts…. Despite [the] potential benefits, the question remains whether such a clause can be enforced against a beneficiary or a trustee, when such beneficiary or trustee wants to proceed in court.” So begins this JD Supra article by Michael Barker, Hunter Glenn, Jodie Herrmann Lawson and Stephen Murphy of McGuire Woods, discussing the Virginia Supreme Court’s recent decision in Boyle v. Anderson, in which the court, interpreting the Federal Arbitration Act and its Virginia statutory counterpart, held that insofar as a trust is not a contract, the settlor of the trust cannot require that trustees and beneficiaries submit disputes to arbitration and the inclusion of an arbitration provision.

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