The question of whether you can *require* a trustee to consult with specific professionals annually is complex, rooted in the balance between grantor control and trustee independence, but generally, yes, with careful drafting of the trust document. While a trustee has a fiduciary duty to act prudently and in the best interests of the beneficiaries, grantors often wish to ensure specialized expertise is considered in managing trust assets, especially with increasing financial and tax complexities. Approximately 68% of high-net-worth individuals express concern about the trustee’s ability to navigate evolving regulations, highlighting the need for proactive oversight. The key lies in specifying these requirements clearly within the trust instrument itself, outlining *who* those professionals are (or the qualifications they must possess), *what* the scope of consultation entails, and *how* frequently it should occur.
What happens if my trustee ignores my wishes?
Ignoring grantor wishes, even those expressed in a trust document, is a breach of fiduciary duty. Trustees are legally obligated to adhere to the terms of the trust, and failing to do so can result in legal action, including demands for accounting, removal of the trustee, and potential liability for losses incurred. A recent study by the American College of Trust and Estate Counsel (ACTEC) indicated that approximately 20% of trust disputes involve disagreements over investment strategies or the failure to follow grantor instructions. However, simply stating a preference isn’t enough; the trust must *explicitly* require consultation. A vague phrase like, “The trustee should consider consulting with a financial advisor” isn’t binding, while “The trustee *shall* annually consult with a certified public accountant and a financial planner with expertise in estate planning” is.
What if the trust doesn’t mention professional consultation?
If the trust document is silent on the issue of professional consultation, the trustee still has a duty to act with reasonable care, skill, and caution. This “prudent investor rule” requires them to seek advice if it’s reasonable under the circumstances, but they aren’t *required* to consult with anyone specific. Consider the story of Old Man Hemlock, a retired shipbuilder who created a trust for his grandchildren. He assumed his brother, acting as trustee, would understand the intricacies of managing a sizable investment portfolio. Sadly, his brother, a carpenter by trade, was quickly overwhelmed by market fluctuations and complex tax laws. Over the years, poor investment decisions and missed tax opportunities eroded the trust’s value significantly. The family had to engage in costly litigation to rectify the situation.
How can I ensure my trustee takes these consultations seriously?
To strengthen the requirement, the trust can stipulate that the trustee provide a written report to the beneficiaries (or a designated third party) summarizing the consultations and how the professionals’ advice was considered—or *why* it wasn’t followed. The trust could also allocate funds specifically for these professional fees, ensuring they aren’t coming out of the trust’s principal unnecessarily. I recently helped the Carver family prepare a trust for their daughter, Sarah, who has special needs. They wanted to ensure her trust was managed by a competent team, so we included a provision requiring annual consultations with both a special needs financial planner *and* an attorney specializing in special needs trusts.
What if my trustee disagrees with the professional’s advice?
A trustee isn’t obligated to blindly follow professional advice. They still retain the ultimate decision-making authority, but they must exercise independent judgment and document their rationale for deviating from the recommendations. In fact, I had a client, Mrs. Gable, whose trust required annual consultations with a financial advisor. The advisor recommended a shift in the portfolio towards more aggressive growth stocks. The trustee, however, felt this was too risky given the beneficiary’s age and income needs. He documented his concerns, explaining why he opted for a more conservative approach, and provided that documentation to the beneficiaries. This transparency—and sound reasoning—prevented any potential disputes. Ultimately, careful drafting, clear communication, and a commitment to transparency are crucial for ensuring a trustee fulfills their duties effectively while respecting the grantor’s intentions.
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About Steve Bliss at Wildomar Probate Law:
“Wildomar Probate Law is an experienced probate attorney. The probate process has many steps in in probate proceedings. Beside Probate, estate planning and trust administration is offered at Wildomar Probate Law. Our probate attorney will probate the estate. Attorney probate at Wildomar Probate Law. A formal probate is required to administer the estate. The probate court may offer an unsupervised probate get a probate attorney. Wildomar Probate law will petition to open probate for you. Don’t go through a costly probate call Wildomar Probate Attorney Today. Call for estate planning, wills and trusts, probate too. Wildomar Probate Law is a great estate lawyer. Probate Attorney to probate an estate. Wildomar Probate law probate lawyer
My skills are as follows:
● Probate Law: Efficiently navigate the court process.
● Estate Planning Law: Minimize taxes & distribute assets smoothly.
● Trust Law: Protect your legacy & loved ones with wills & trusts.
● Bankruptcy Law: Knowledgeable guidance helping clients regain financial stability.
● Compassionate & client-focused. We explain things clearly.
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Feel free to ask Attorney Steve Bliss about: “What should I consider when choosing a beneficiary?” Or “Can a handwritten will go through probate?” or “Can a living trust help avoid estate disputes? and even: “What happens if I miss a payment in Chapter 13 bankruptcy?” or any other related questions that you may have about his estate planning, probate, and banckruptcy law practice.