Two trustees are named, a time-sensitive decision waits, and nobody agrees. That is a common scene in trust administration, and the stakes feel high for families counting on steady management.
At Casey Lundregan Burns, P.C. we have guided Massachusetts families for 100 years across three generations, and we have seen how structure and plain language bring order to tough moments.
Overview of Co-Trustee Roles and Responsibilities
Co-trustees share the same job, which is to carry out the terms of the trust for the benefit of the beneficiaries. The law expects careful judgment, steady communication, and recordkeeping that shows every decision was reasonable and well grounded.
The Purpose of Appointing Multiple Trustees
Many grantors choose more than one trustee to create checks and balances. A second trustee can confirm big moves, ask hard questions, and keep the plan faithful to the trust’s purpose.
There is also value in combining different strengths. A family member might know the beneficiaries’ needs, while a professional fiduciary brings investment discipline and tax awareness.
When co-trustees work from an easy-to-understand playbook, they share the load without stepping on each other’s toes. That structure starts with the trust document, then is reinforced by meeting notes and a simple action plan.
Core Fiduciary Duties
Co-trustees owe strict duties to the beneficiaries. These include the duty of loyalty to put beneficiary interests first, the duty of impartiality to treat beneficiaries fairly under the terms of the trust, and the duty to protect and account for trust property.
They must also administer investments prudently under Massachusetts standards. That means setting an investment policy, monitoring performance, and working to avoid preventable market losses, all while documenting the reasons behind each choice.
What Massachusetts Law Says About Co-Trustee Actions
Authority for co-trustees comes from two places: the Massachusetts Uniform Trust Code and the trust instrument. The statute supplies default rules, but the written trust can change those rules with plain language.
The Default Rule Under the Massachusetts Uniform Trust Code (MUTC)
Co-trustees act by majority decision. If there are exactly two co-trustees, a majority of two is two, which means they must act unanimously unless the trust says otherwise.
If there are three or more co-trustees, the default rule permits a majority to act for the trust. The law also allows the court to break ties or step in if action is needed and the trustees are stuck.
These defaults matter only if the trust is silent. Many modern trusts rewrite the voting rules to fit the family’s goals, so always read the instrument first.
How the Trust Instrument Overrides Default Laws
The trust document controls, and it can replace the default voting rules. One common approach is an independent action clause that allows a trustee to sign alone for routine or even major acts.
Language sometimes looks like this: “each trustee shall have the authority to act alone and independently of the other co-trustee.” That sentence gives speed and flexibility, which can be helpful for time-sensitive transactions.
Independent action comes with risk, and it should be weighed carefully:
- One co-trustee could withdraw funds or move investments without a second review.
- Real estate could be listed and sold without the other trustee’s input.
- Uneven decisions can fuel family disputes or claims of favoritism.
- Some banks still ask for two signatures under their internal policies, which slows everything down.
To limit those risks, some trusts pair independent action with notice requirements, dollar caps, or a quick objection process. That keeps flexibility while preserving oversight for larger or sensitive moves.
Potential Challenges When Co-Trustees Disagree
Even with plainly stated rules, disagreements happen. The law anticipates this tension and gives trustees tools to resolve it without harming the trust.
Handling Deadlocks in Administration
Two trustees who must be unanimous can hit a wall, which creates administrative paralysis. Bills sit, investment changes stall, and beneficiary requests linger without an answer.
Delays can hurt the beneficiaries through missed distributions, late tax filings, or stale portfolios that no longer match the trust’s goals. Over time, that kind of drift can be more damaging than making a well-reasoned decision that not everyone loves.
Massachusetts courts can step in to break a deadlock, approve a proposed action, or remove an uncooperative trustee if the fight threatens the trust’s purpose. Court guidance can be targeted, fast, and focused on preserving the assets.
Disputes do not need to reach that stage if co-trustees follow a simple rhythm, meet regularly, exchange drafts, and document their votes. A written calendar for routine tasks, like tax prep and annual accountings, also reduces friction.
Liability for a Co-Trustee’s Breach of Fiduciary Duty
A co-trustee cannot close their eyes to a partner’s improper act. Each trustee has a duty to take reasonable steps to prevent a serious breach and to address harm if a breach occurs.
That duty can require objecting in writing, calling a special meeting, freezing an account, contacting counsel, or asking the court for instructions. Silence can be read as approval, and that is a bad place to be.
If a breach occurs, a co-trustee also has a duty to compel the other trustee to fix it, which can include reimbursement or reversing a transaction.
Careful Considerations for Trustee Selection
Sound trustee selection prevents headaches later. A bit of planning while the grantor is living can spare the family from rushed court visits and steep legal bills.
Family Members vs. Professional Fiduciaries
Many people name a sibling, in-law, or close friend to avoid trustee fees and keep it in the family. That instinct is understandable, but the job is time-consuming and comes with real legal duties.
Corporate or professional trustees bring systems, tax reporting experience, investment due diligence, and a neutral tone during tough family conversations.
That mix often saves money over time by limiting mistakes and documenting choices that stand up to review.
Fees are real, yet the tradeoff can protect the beneficiaries and reduce conflict during stressful seasons. A blended model is common, pairing one family trustee with a professional co-trustee.
Whichever path you choose, plain voting rules, defined roles, and a short decision timeline help a lot. Write it down in the trust and follow it in practice. Your attorney will help keep you on track.
Contact Casey Lundregan Burns, P.C. for Trusted Fiduciary Guidance
For three generations, Casey Lundregan Burns, P.C. has stood with fiduciaries, beneficiaries, and families across Massachusetts to protect their legacy.
Our firm handles tough co-trustee questions and trust disputes with steady counsel grounded in Massachusetts law.
If you need help with a deadlock or want a review of your trust’s co-trustee language, reach out and talk with us. Call 978-741-3888 or visit our contact page to set up a conversation that fits your schedule.
Disclaimer: The information provided in this blog post does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only.