Page 38 - Successor Trustee Handbook

Establish your communication “rules”. What is your preferred manner for
beneficiaries to contact you - - by phone (and at which phone number),
e-mail, fax, or regular mail? When is the best time for them to contact
you? How soon after their contact can they expect a response from you
and in what manner? How often or when will you hold periodic meetings
and/or provide them with reports or accountings? Once these rules
have been set and explained to the beneficiaries, be firm in enforcing
these rules. If a beneficiary repeatedly acts in violation of these rules,
you may have to let him or her know that you will no longer deal with him
or her unless and until they obtain their own legal counsel and then you
will deal directly with that counsel; or, you may threaten to resign as
Trustee unless the beneficiary starts obeying your rules (this may be
particularly effective if the next Successor Trustee is likely to be less
“friendly” to the beneficiary)!

Be civil and courteous at all times. This may be very difficult when a
beneficiary becomes frustrated with the pace of the Trust administration,
which typically can take anywhere from six months to two years, or a
beneficiary is emotional, greedy and/or contentious. If a beneficiary
deals with you in an uncivil or discourteous manner, you need to
immediately put your foot down and let him or her know that you will not
deal with him or her until he or she has calmed down and can
communicate with you appropriately. If a beneficiary continues to be
uncivil, discourteous or contentious with you, you need to then advise that
beneficiary that he or she should obtain their own legal counsel and have
that legal counsel contact you in their place.

Keep your emotions out of it. You must keep your personal feelings
toward a beneficiary, whether good or bad, from influencing your
decision-making. This can often occur when a beneficiary is also a
relative of yours. Decisions based upon emotion, rather than reason, may
cause you to unconsciously breach your duties as Trustee and subject you
to liability. If your position as Trustee becomes an “emotional hot seat”,
you may need to consider bringing in a Co-Trustee (if the Trust document
permits) or resigning and bring in the Successor Co-Trustee. If a
beneficiary is intentionally causing you emotional strain, you can explain
that you will bring in a Co-Trustee or the Successor Trustee, who may be
a lot less compassionate and responsive to the beneficiary’s needs - -
often times the beneficiary will then decide to “clean up” his or her
behavior!

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