11/18/2016
Top 10 Ways Trustees Get Into Trouble
1. Not keeping beneficiaries informed:many problems will be avoided by communicating with beneficiaries.
2. Administration: not filing tax forms; not paying bills; not distributing income; not complying with federal and state laws; not following the terms of the trust.
3. Self-Dealing: allowing a transaction that benefits herself or himself outside of the terms of the trust.
4. Conflicts of interest: when the trustee is also a beneficiary, the duty to the trust is primary.
5. Payment of fees: excessive professional and trustee fees.
6. Sloppy accounting and record keeping.
7. Investments: too risky or too safe (can't buy lottery tickets or put the money under a mattress).
8. Discretionary distributions: distributing too little or too much.
9. Trust litigation: not defending or protecting the trust.
10. Ending the trust early or not ending it when stipulated.
