As a Houston estate planning attorney, one of the issues that comes up is the relationship between a trustee of a Texas trust and the beneficiaries of the trust. The trustee manages the trust assets for the benefit of the beneficiaries, and usually has some level of discretion regarding when and how distributions may be made to the beneficiaries. As you can imagine, when the trustee and the beneficiaries are not the same people, tensions can arise regarding a number of issues, ranging from how trust assets should be managed to how often distributions should be made and in what amounts to how the trustee should be compensated. While it is impossible for a grantor (the person creating the trust) to anticipate every scenario that may cause issues between a trustee and the beneficiaries, there are some things that you can do in an attempt to help ensure that issues will be resolved as smoothly as possible, such as:
The relationship between trustees and beneficiaries can be complex, but with a little careful planning, you may be able to avoid some issues by addressing them before it’s too late.