Trustee Best Practices: How to Serve the Family Well and Minimize Personal Risk

When done well, a trustee’s service can have a profoundly positive impact on a family; when done poorly, a trustee’s service can create or exacerbate fissures within a family, dissipate family wealth, create personal liability for the trustee, and create a public spectacle that sullies the family’s good name and reputation. For key employees in family offices, service as a trustee is sometimes part of the job description. The trustee should adhere to the best practices that will serve the family well, fulfill the duties to the beneficiaries, and minimize the personal risks.