When to Create a Trust — and What to Do If a Trustee Fails Their Duty
Trusts aren’t just for the wealthy. They’re practical, flexible tools that help protect your assets, avoid probate, and provide for loved ones — no matter your income level.
Maybe you want to:
- Keep your affairs private and out of probate court.
- Leave money to stepchildren or blended family members.
- Support a favorite charity.
- Protect your small business from liability.
- Provide for a child with special needs.
- Plan for an elderly parent who may need MaineCare (Medicaid) or other government benefits.
In all these cases, a trust can be the right solution.
How Trusts Are Meant to Work
In an ideal world, a trust functions like a well-oiled machine.
The trust creator (grantor) sets clear, fair instructions for how assets should be managed and distributed. The trusteefollows those directions responsibly — investing wisely, keeping accurate records, and communicating openly with the beneficiaries.
When everything runs smoothly, the trust achieves its purpose: protecting assets, supporting loved ones, and ensuring financial peace of mind.
Unfortunately, things don’t always go as planned.
When Trustees Fall Short
In real life, trustees can be inexperienced, overwhelmed, or — in rare cases — dishonest. Beneficiaries may become suspicious, especially if communication is poor or accountings are delayed.
If you’re a beneficiary who suspects that a trustee isn’t fulfilling their duties, here’s what to do.
Step-by-Step: What to Do If You Suspect Trustee Misconduct
1. Start by assuming good intentions.
Misunderstandings are common. Begin by calmly identifying what’s bothering you and asking to meet with the trustee to discuss your concerns.
2. Request a copy of the trust document.
As a beneficiary, you have the right to read the trust for yourself — not just rely on someone’s interpretation.
3. Ask for an accounting.
You are legally entitled to know where the trust funds are held, how much income they earn, and what expenses or commissions have been paid.
Request this information in writing and give the trustee a reasonable amount of time to respond.
4. Seek legal help if the problem continues.
If your trustee refuses to cooperate or you suspect mismanagement, don’t wait. Time limits may apply. Contact an experienced trust and estate attorney — not a general practitioner, and not the attorney who drafted the trust.
Sometimes, a formal letter from your attorney can prompt quick action. Other times, it may take probate court intervention to compel the trustee to act or, in serious cases, to remove them entirely.
When Trustee Misconduct Becomes a Crime
If you believe your trustee is stealing, embezzling, or misappropriating assets, that could be a criminal matter. However, police typically act only if the trustee has clearly taken money for personal use or disappeared.
Other issues — like reckless investing, withholding information, or failing to communicate — are handled through civil probate proceedings, not criminal court.
A probate judge can force the trustee to account for funds, make distributions, or step down if necessary.
The Trustee’s Responsibilities
A trustee has a fiduciary duty — the highest standard of care — to:
- Communicate honestly and transparently with all beneficiaries.
- Manage and safeguard trust property.
- Provide detailed accountings upon request.
- Follow the exact terms of the trust.
Being a trustee can be demanding, so it’s important to allow reasonable time for reporting and decision-making. Still, beneficiaries should expect timely, honest, and clear communication.
When Family Conflict or Confusion Arises
Even the best-intentioned families can experience tension when money, inheritance, or caregiving are involved. If you’re in a situation where emotions are running high and trust has broken down, you don’t have to face it alone.
At Aging in Maine, we help families protect what matters most. Our team understands the complexities of Maine trust and estate planning, beneficiary rights, and trustee responsibilities.
📞 Call us today at (207) 848-5600 to schedule a consultation.
Let’s work together toward a fair, peaceful, and lasting resolution.
