Tips From the Pros: Dealing With a “Bad” TrusteeTips From the Pros: Dealing With a “Bad” Trustee

Unfortunately, some trusts, even when the administrative and dispositive provisions are well-designed, fail to operate as intended because the trustee lacks the ability to be an effective fiduciary. The trustee’s shortcomings may result from having insufficient trust administration expertise, a confrontational attitude towards one or more of the beneficiaries or both. Depending on the nature and extent of the trustee’s deficiencies, resolving the situation may prove difficult.

Relationship With Beneficiaries
A beneficiary may be justifiably dissatisfied and unhappy with a trustee’s performance even if an actionable breach of fiduciary duty can’t be identified. The trustee may operate on the edge of breaching the trustee’s duties to benefi...