The Price of Poor Trust Management? Your Child's Future

When someone sets up a trust, often to support their children or family members after they're gone, they usually name a trustee to manage it. On the surface, it might seem like a straightforward job: look after the money, make sure it grows, and eventually pass it on to the right people.

But being a trustee isn’t just about balancing the books. It comes with serious responsibilities, especially when the people relying on the trust are children or otherwise vulnerable.

Looking After More Than Just the Money

A common misconception is that a trustee’s main job is to protect the money in the trust and keep it growing. While that’s important, it’s not the whole picture. If the trust was set up to support children, for example, then their everyday needs—like education, healthcare, and a stable living situation—must be a top priority.

A trustee who focuses only on preserving the trust’s value for the future, while ignoring what the beneficiaries need right now, isn’t doing the job properly.

Understanding and Responding to Real Needs

Being a trustee means more than making decisions from a distance. You need to understand the people the trust is meant to support. That might mean talking to caregivers, reading reports from teachers or psychologists, or simply staying informed about how the beneficiaries are doing.

Deciding not to pay for school fees, therapy, or even housing without understanding why the request is being made can seriously harm the people the trust was set up to help.

Why Communication Matters

In many trusts, especially those involving children, a parent or guardian may need to work closely with the trustee. If that relationship breaks down (if there’s constant arguing, disrespect, or poor communication) it can make it nearly impossible to manage the trust in a way that truly benefits the family.

Good trustees don’t just manage money—they also manage relationships. Respect, openness, and cooperation are key.

When a Trustee Can Be Replaced

Sometimes, things just don’t work out. If a trustee isn’t acting in the best interests of the beneficiaries there are legal pathways to have them replaced with someone more suitable, like an independent professional.

Courts don’t take this step lightly, but they will act if it's clear that the current trustee isn’t serving the trust’s purpose.

Thinking of Becoming a Trustee—or Worried About One?

If you’ve been asked to act as a trustee, or if you're dealing with a trust and something doesn’t feel right, it’s important to understand your rights and responsibilities. A trust is meant to be a tool for care and support—not a source of stress or tension.

At MMLaw, we help families make sense of trusts and ensure they’re managed fairly and effectively. Whether you need guidance as a trustee or you're concerned about how a trust is being handled, we’re here to help. Dhanya Panikkar | Senior Associate

MMLaw

The information in this document represents general information and should not be relied on for your specific circumstances. If you require legal advice and assistance on the matters contained or associated in this document you should contact MMLaw.