The relationship between trustees and beneficiaries is often complicated and can lead to expensive litigation and broken friendships. Here are a few ways to avoid such problems from arising:

• Beneficiaries should have a clear idea of the terms of the trust and what if any discretionary power the trustee has.
• If a trustee has discretion in making distributions, the beneficiaries should be instructed to make a clear and calm case for themselves when there is an initial disagreement with the trustees decision not to make a distribution.
• Including clear instructions for the amount of fees in the trust document and following state guidelines may prevent future conflict over fairness of fees.
• Keeping the lines of communication open and using a third party facilitator can aid in resolving conflicts early.

See Liz Moyer, The Trouble With Trustees, The Wall Street Journal, Nov. 21, 2014.

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