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| Visions & Revisions |
The Business of Trust Busting
Marianne Cotter
01/01/2004
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If the trustee generates regular reports, there is no need for—and the trustee would likely resent—further
communication from the beneficiary.
Any trustee who resents communication is a bad trustee. Acting as a trustee is akin to being a member of the family, but without the emotional entanglements. Trustees who are unable to put themselves in the shoes of the beneficiary are the ones who generate reams of paper reports that mean nothing to the recipient. Personal contact is essential in order for the trustee to make good decisions, which, after all, have life-changing effects on the heirs. Attempts to break a trust will result in bad publicity for the family.
Bad can be good! Publicity, or the implied threat of it, is one of the most effective tools a family has in dealing with unresponsive or poorly performing trustees. The last thing a trustee wants is for beneficiaries to bring complaints into public view. A trustee’s reputation is its most valuable asset. Any threat to its image, either perceived or actual, will elicit a strong response. It is a calculated risk, but moving incrementally toward exposing abuses is a sure-fire way to get the ball rolling. If you as a beneficiary decide to step up to that plate, you have got to be willing to play hardball.
When either a benefactor or a beneficiary demands a change in the terms of the trust, the trustee should be required to respond within a set amount of time.
Good trustees respond in a timely manner. Problems in this area usually indicate that deeper issues need to be addressed.
There are no statutory requirements that detail timetables for trust services. Due to the complicated nature of many trust assets—securities, real estate, closely held businesses—a set timetable is often not possible. Making changes in the terms of a trust or in its investment orientation requires due diligence, and that takes time.
There ought to be—and can be—firm commitments on the part of trustees to provide beneficiaries with frequent and detailed status reports.
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