When a family member isn’t a good choice as trustee

Scenario: As the eldest child, Kathy’s parents named her as executor of her parents’ estate which when settled, created a trust for her brother Ryan.  Ryan had a known drinking problem and was a bit of a black sheep in the family.  Regardless, Kathy’s parents felt strongly about dividing their assets equally amongst their three children.  At least they had the foresight to put Ryan’s portion in trust for him.  But Kathy knew that every time Ryan needed money, he’d be calling her to release it from the trust.  While she maintained a relationship with her brother, the potential for that relationship to deteriorate if she ever had to tell him that his demands or lifestyle were unreasonable was a concern. 

Solution: Kathy met with her parents’ financial advisor who introduced her to The Private Trust Company.  We shared some solutions and alternatives to remove the conflict and family drama, while still remaining in the picture to be an advocate for her brother.  After reviewing the trust document, Kathy was able to resign as trustee, naming PTC in that capacity, and she remained on in a Trust Advisor role where she could provide guidance regarding her brother’s alcohol addiction as well as retain the ability to change trustees if at any time they were less than satisfied.  PTC was able to provide unbiased support to Ryan, including supporting his needs with rehabilitation.