Trustee Risk Factors Advisors Should Watch For

Professional advisors—especially those serving as trustees or working closely with trustees—play a central role in ensuring a trust is administered correctly. But with increased scrutiny, evolving financial rules, and more complex family situations, advisors must be prepared to identify early warning signs that could lead to litigation.

Where Professional Trustees Face the Highest Risk

Some of the most common issues include:

• Inconsistent communication with beneficiaries
  
• Lack of documentation around decisions
  
• Conflicting trust provisions
  
• Failure to follow investment mandates
  
• High-conflict family situations
  
• Assets that weren’t properly titled or disclosed
  
• Trustees acting outside their authority
  

Advisors often spot these issues first, and early intervention can prevent them from spiraling into formal disputes.

Using Your Expertise to Maintain Stability

Professional trustees who maintain strong communication, document decisions carefully, and collaborate with estate planning counsel can dramatically reduce their liability. Families value advisers who provide organization, neutrality, and proactive risk management during times of uncertainty.

Your experience is invaluable in keeping trust administration on track, compliant, and free from unnecessary conflict.

If you’re supporting trustees or acting as one yourself, we’re here to help you anticipate challenges and navigate complex situations with confidence and clarity.