A trustee is a person or organization appointed by the grantor to perform specific duties in favor of the beneficiaries. Sometimes, the grantor trusts one of the beneficiaries to take on the trustee’s role. If everything goes as planned, the trustee will remain level-headed and consider all beneficiaries when making decisions. However, issues may arise if the trustee prioritizes their benefits before anyone else’s.
Conflicts of interest
The trustee should understand the conditions outlined in the trust and honor the grantor’s wishes. But sometimes, conflicts of interest can arise. The trustee could put their interests first instead of considering the other beneficiaries. On the one hand, if you are a trust beneficiary and suspect the trustee is not acting in favor of everyone involved, you can seek legal advice to decide how to address the conflict.
On the other hand, if you are a trustee who is also a beneficiary, you should be aware of your responsibilities and honor them. In grief, making assertive decisions that benefit everyone can be challenging. Still, it is crucial that you make your best effort to ensure the grantor’s wishes are met.
The duties of the trustee
Issues among the beneficiaries of a trust are common. They can strain family relationships and intensify emotions in tough times. It is best to remain objective and treat everyone involved fairly. It can be helpful to review the trustee’s duties as follows:
- The trustee is obligated to make decisions in the best interests of the beneficiaries.
- The trust’s documents should disclose the duties of the trustees. They have no additional responsibilities or obligations.
- The trustee can be financially liable if their decisions cause damage to the assets.
If conflicts arise between the trustee and the rest of the beneficiaries, addressing them and finding a solution is essential. Administrating a trust is an important responsibility that should performed with attention and care. Remember that the trustee’s decisions impact the interests of beneficiaries and can make or break dynamics among family members and loved ones.