Shared trusteeship may sound fair on paper, but real life can pull co-trustees in different directions. Money, timing, and family history all play a role, and even minor misunderstandings can hinder trust development. At Casey Lundregan Burns, P.C., we have guided Massachusetts families through trust and estate matters for over 90 years.
Common Reasons for Disagreements Among Co-Trustees
Even when everyone cares about the same beneficiaries, co-trustees can hold very different views on risk, timing, and fairness. That gap can widen without a strong plan for decision-making.
Financial Decisions
Disputes often center on investments, property sales, expense control, and how to allocate cash among trust needs. One trustee can favor conservative bonds, while the other pushes for growth funds or a quick sale of real estate. Tension can escalate quickly when there is disagreement over what qualifies as the best fiduciary strategies.
Interpretation of Trust Provisions
Vague or dated language can elicit entirely different interpretations of the same clause. A single sentence about “health, education, and support” can mean tight limits to one trustee and broad discretion to the other. Those views lead to opposite management choices.
Distribution of Trust Assets
Co-trustees can disagree on what best serves a beneficiary’s long-term welfare. One trustee might push to cover college costs immediately, while the other wants to wait until a beneficiary demonstrates better financial habits. Each view aims to help, yet the timing and conditions look pretty different.
Day-to-Day Management
Friction can also appear in routine tasks, such as selecting accountants, hiring a real estate agent, or determining the level of detail in reports to beneficiaries. Different pacing and communication styles can turn simple chores into ongoing debates.
Identifying patterns early on is helpful. If you are encountering one of the issues above, establish a process to address it before it escalates.
- Identify the narrow question at stake, such as sell or hold, distribute or reserve.
- List the relevant trust sections, then note any gaps that may require outside guidance.
- Document your discussions and decisions for the file and for beneficiaries.
Clear notes help keep everyone honest, and they protect you if the matter later reaches court.
Steps to Resolve Co-Trustee Disagreements
Disputes do not have to derail administration. With a few structured moves, you can get the trust back on track.
Communication and Collaboration
Start with a calm, direct conversation that focuses on the trust’s goals. Share data in writing, set a short agenda, and stay focused on the key points. Active listening, combined with a willingness to compromise on more minor points, often breaks a stalemate.
- Use short decision memos that outline the issue, options, pros and cons, and a proposed timeline.
- Aim for a trial period where both sides make concessions, then review the results together.
Small wins help build trust, which makes larger decisions easier.
Reviewing the Trust Document
Re-read the trust and any amendments to anchor your decision in the grantor’s intent. Check for language on discretionary standards, powers to sell or invest, and any tie-break rules. If the wording is unclear, note it in your records, as this will guide the next step.
Seeking Professional Counsel
An attorney, CPA, or financial advisor can offer an objective view and flag legal or tax angles you might miss. Under Massachusetts practice, trustees can generally retain their own lawyers at the trust’s expense to advise on fiduciary duties. Clear advice narrows the dispute and lowers risk for everyone.
Mediation
Mediation involves a neutral party who helps both sides reach a mutually workable plan without resorting to court. Sessions are private, flexible, and focused on problem-solving. Many families like that it preserves relationships and moves faster than litigation.
Court Intervention
Litigation sits as the last step, given the costs, time, and stress it can add. Judges look closely at whether you tried in good faith to work with your co-trustee before filing.
Preventing Problems When Naming Co-Trustees
Good drafting reduces conflict before it starts. You can set guardrails that keep trustees focused and beneficiaries protected.
Pick trustees who share core values and can communicate under stress. Give clear instructions on distributions, investment authority, and the process for resolving disputes if trustees cannot agree. If neutrality is vital, think about naming a corporate trustee or professional fiduciary to steady the ship.
- Add tie-break tools, such as a trust protector with limited authority to interpret or direct on narrow issues.
- Specify signatures required for major transactions and timelines for routine tasks.
- State when a trustee can act alone, such as paying urgent bills or safeguarding property.
These small drafting choices often prevent years of friction later.
The Duty of Co-Trustees
Every trustee owes a fiduciary duty of loyalty, care, and prudence to the beneficiaries under Massachusetts General Laws chapter 203E. That duty is active, not passive. Co-trustees also have a duty to attempt to prevent breaches by the other trustee and to rectify any harm that has already occurred.
Courts may hold trustees responsible if they fail to act when a loss to the trust occurs. In short, trustees must maintain a vigilant concern about what their co-trustee is doing. Silence can be risky, and documented efforts to address problems are crucial.
When Two’s a Crowd
Co-trustees are expected to collaborate, share updates, and consult with each other on decisions. That gets tough when old sibling rivalries or hurt feelings resurface, especially after a parent’s death or during a long illness. Regular check-ins and a written plan for routine tasks can help alleviate some of the tension in the room.
A sticking point, especially with two trustees, is the requirement for unanimous action unless the trust stipulates otherwise. Gridlock can hinder the trust’s purpose and lead to court involvement. If that happens, a judge can appoint a neutral or remove a trustee when the legal standard is met.
Alternative Dispute Resolution (ADR)
If you want to avoid a lawsuit, ADR is a solid path. Mediation is a less formal process, and the mediator, typically an attorney, serves as a neutral party to help the trustees find common ground. Arbitration resembles a hearing, and the parties agree in advance to be bound by the arbitrator’s decision.
ADR can be set up quickly, keeps private family details out of public files, and often leads to practical compromises. Many trustees find that a focused half day in mediation achieves more than months of back-and-forth emails.
Contact Casey Lundregan Burns, P.C., for Trust and Estate Guidance
If a co-trustee relationship is wearing you down, let us step in and help you sort the next step. We work with fiduciaries and beneficiaries across Massachusetts, always with an eye on clear process and family goals. Call (978) 788-9934 or visit our website to schedule a meeting with us. We welcome your questions.
The information in this post is not intended as legal advice or as a substitute for the particularized advice of counsel. For more information, please consult an attorney.