Corporate Trustees

Examples of Conflicts of Interest

  • Trustee does not adequately explain portfolio risk to beneficiaries.
  • Trustee places the risk of the trust company ahead of the goals of the trust beneficiaries.

Questions Wealth Owners Should Ask to Surface Conflicts

  • How do you address beneficiaries who are unhappy with your investment performance or other decisions such as distributions?
  • Do you have a policy to voluntarily “step down” when beneficiaries are not happy with your performance?
  • Will you delegate any of the three trustee duties to external professionals if requested by the family (distributive, administrative and investment duties)?
  • Without disclosing confidential information, what types of fiduciary issues or complaints led to lawsuits or settlements against your firm in the past three years?