Page 39 - Successor Trustee Handbook

Respond timely to beneficiaries’ phone calls, other communications and
reasonable requests. If you are unable to immediately do so, at least
get back to them right away and let them know the specific time frame
and manner in which you will respond fully to them. Then, make sure you
calendar this for yourself and do follow-up in the time and manner
promised. Your attorney may be a big help to you in managing responses
to beneficiaries, but be conscious of the fact that the attorney may not
expect this to be a part of his or her job, particularly if you have engaged
the attorney on a fixed or flat fee basis and the attorney has only built in
a limited amount of time for dealing directly with beneficiary issues; be
aware that you may need to pay additional fees if the attorney must
repeatedly help you in dealing with the beneficiaries, but on the other
hand those additional fees may be well worth it!

Understand the beneficiaries’ rights. These may vary depending upon
state law and the Trust document itself. Generally speaking, the rights of
the beneficiaries include, but are not necessarily limited to: receiving a
copy of the Trust document (and possibly other pertinent legal
documents); notification of a change of Trustee; obtaining notification of
any court filings; getting a list of the original Trust assets and their values;
receiving a periodic accounting (see the Chapter, “Accounting to the
Beneficiaries”); depending on the terms of the Trust, requesting
distributions when they need them, provided they can justify the reason
and provide any necessary backup; subject to the limitations of the law
and the Trust document; challenging your Trustee actions and/or
removing you as Trustee; and obtaining a list of the assets upon
distribution from the Trust and their values. (Also see the Chapter, “Your
Trustee Duties”).

Resolve any disputes between you and the beneficiaries as quickly as
possible and in the most friendly and inexpensive manner possible. First,
attempt to put together an agreement of all the parties. This may
sometimes need to be memorialized in writing and signed by everyone.
The beneficiaries may need to be represented by independent counsel or
waive their right to this independent representation. If that doesn’t work,
then look to the Trust document for any dispute resolution procedure that
may be outlined there; for example, it may dictate or permit the use of an
arbitrator or mediator, a panel of advisors, or a third party “Trust
Protector” to resolve disputes. Next, if the document does not provide a
definite dispute resolution process, you may wish to voluntarily seek a
third party mediator for your dispute; there are numerous ways to obtain
the services of such a mediator, including contacting the State Bar
Association, the American Arbitration Association, or the American
Mediation Association. If all that doesn’t work, then your last resort is to
go to Probate Court.

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