Today I received a phone call from a dear and close friend about her eighty something year old father. She was vacationing with him and the topic of his trust came up.
He mentioned to her upon his death a very well known bank would serve as trustee. My friend was taken back by the idea of some stranger taking on the role of corporate trustee and making decisions for her and her family members.
I thought about her comments and put myself in her position. I personally would not want an impersonal bank serving as trustee for my family’s fortune. Immediately I think of a stranger as uncaring and mean-spirited especially if they are making decisions on my behalf and not granting my request. Who’s side are they on and why would I trust them?
In my career I have seen plenty of situations where a family member has been unhappy with the corporate trustee and co-trustees decision for not giving in to their demands. Sometimes the trustee is strict and probably should give in to a beneficiary’s request and other times I believe the trustee has performed his or her duty by saying no to a relentless beneficiary.
As I explained to my friend, be careful what you wish for. The responsibility that comes with being a trustee is a daunting task. Do not confuse duty and responsibility with privilege. Being a trustee is a duty and responsibility; it can also be hard work. The trustee has a fiduciary duty to the other beneficiaries, not privileged access to funds. A trustee of a trust is not an owner of the assets that are inside the trust. The trustee is a manager or agent of the trust and has the responsbility of following the grantors wishes.
In my friend’s situation, I think her father did the right thing. She has sibilings that are carefree with money and who would immediately put their interest before hers and severely punish her for not giving in to their demands. In this situation I applaud her father for taking the appropriate action and hiring a corporate trustee.
Remember, a corporate trustee should be able to think objectively and follow trust instrustions without emotion, unlike a child of the deceased who will be emotionally involved and who may or may not have biased opinions about another beneficiary’s request for money. So don’t take it personally when you are not named trustee or co-trustee of your parents trust. Be thankful you avoided the burden and responsibility of saying “NO” to sibilings or other family members.