What to do When Beneficiaries and Trustees Disagree? How Should A Trustee Select A Realtor?

Dear Phyllis,
My mother passed earlier this
year. She had been living with
my brother and his wife. As the
eldest daughter, my mother
originally named me as the
trustee of her trust. However,
I later learned that about six
months before she passed, my
brother had her amend the trust
to name him as trustee instead. I
am unsure why this change was
so important to him or necessary.
I work in the financial services
industry and am fully capable
of serving in this role. Now, as
the sole trustee, my brother has
decided to hire a friend to sell
my mother’s home. I know very
little about this individual, other
than he is not particularly
active in real estate. I am also
concerned about whether this
agent has adequate experience
with trust sales.
My sister and I have asked my
brother to interview another real
estate agent. We offered several
suggestions, but he refuses. I
know that this is his decision,
but I think he is being reckless. I
have been following your column
for years and am hoping you
have some sound advice.
— MM

Dear MM,
Being a trustee is a lot of work,
and the trustee can only take a
small fee. It is really not enough
to compensate for their time and
effort. There is typically so much
paperwork involved and there
are the beneficiaries to account
to as well.

Assuming there is a trust
attorney why don’t you address
your concerns with him/her? If
there is not an attorney, you
might consider consulting with
one. The only other suggestion I
can make as a Realtor and not
an attorney is that you and your
sister might send your brother a
letter via certified mail that you
believe it is his fiduciary duty to
interview at least one other real
estate agent.

Phyllis