When a loved one passes away and leaves behind a trust, the person appointed to oversee it is called a trustee. This individual has the important job of managing the trust’s assets, making distributions to beneficiaries, and carrying out the wishes of the person who created the trust (the grantor).
But what happens when a trustee falls short of their responsibilities? As a beneficiary, it’s crucial to understand what the trustee should be doing—so you can recognize the signs of good management or potential misconduct.
In this blog post, we’ll explain the role of a trustee, their responsibilities under the law, red flags beneficiaries should watch for, and how inheritance loans from Approved Inheritance Cash can help when a trustee causes delays or financial hardship.
What Is a Trustee?
A trustee is the person or institution legally responsible for managing and administering a trust. The trustee has a fiduciary duty to act in the best interest of the beneficiaries and to follow the instructions outlined in the trust document.
Trustees can be:
- Individuals (often family members or close friends)
- Professional fiduciaries (licensed individuals who manage trusts for a living)
- Banks or trust companies
The trustee steps in once the grantor passes away (or becomes incapacitated) and is expected to manage all aspects of the trust until the assets are properly distributed.
Key Duties of a Trustee
Trustees have a number of legal and ethical obligations. These duties are often outlined in state trust law and are taken very seriously by probate courts.
1. Duty of Loyalty
Trustees must always act in the best interest of the beneficiaries—not themselves. This includes avoiding conflicts of interest, self-dealing, or favoritism.
2. Duty of Prudence
Trustees must manage the trust’s assets wisely. That means making smart investment decisions, maintaining property, and preserving the value of the trust.
3. Duty to Follow the Trust
Trustees must follow the terms and instructions in the trust document exactly. They cannot make changes based on personal opinions or preferences.
4. Duty to Inform and Report
Beneficiaries are entitled to regular updates. Trustees must provide an accounting of trust activity, respond to reasonable requests, and keep beneficiaries informed.
5. Duty of Impartiality
When there are multiple beneficiaries, trustees must treat them all fairly and cannot show favoritism.
What Should a Trustee Be Doing Day-to-Day?
A responsible trustee should:
- Inventory trust assets (real estate, bank accounts, investments, etc.)
- Pay debts, taxes, and expenses related to the estate
- Keep detailed records of all financial activity
- Provide beneficiaries with updates and statements
- Distribute assets according to the trust terms
- Act promptly and avoid unnecessary delays
Failure to do any of the above can be a warning sign of problems to come.
Red Flags Beneficiaries Should Watch For
Unfortunately, not all trustees live up to their duties. As a beneficiary, you have a right to monitor the situation. Watch for these common warning signs:
1. Lack of Communication
If the trustee isn’t returning calls, responding to emails, or providing updates, it could mean they’re hiding something—or they simply aren’t doing their job.
2. Delayed Distributions
While some delays are normal, excessive or unexplained delays in distributing assets should raise questions.
3. Missing or Incomplete Accountings
Trustees are legally required to provide clear financial records. If accountings are vague, missing, or inaccurate, this is a serious red flag.
4. Conflict of Interest
If the trustee is also a beneficiary and seems to be favoring themselves—or making decisions that benefit them personally—they may be violating their fiduciary duty.
5. Suspicious Transactions
Large withdrawals, sudden asset sales, or transfers to unknown parties should be closely reviewed and reported if necessary.
What Can You Do If the Trustee Isn’t Doing Their Job?
Beneficiaries have the right to take action if a trustee is acting improperly. Here are your options:
1. Request an Accounting
Formally request a financial accounting of all trust activity. Trustees are legally obligated to comply.
2. Hire a Probate Attorney
An attorney can review the situation, help you understand your rights, and communicate with the trustee on your behalf.
3. Petition the Court
If the trustee refuses to cooperate or continues to act improperly, you can file a petition in probate court to have them removed and replaced.
4. Seek Damages
If the trustee’s actions caused financial harm to the trust, you may be able to recover damages through legal action.
How Inheritance Loans Help When a Trustee Causes Delays
Legal battles and trustee mismanagement can delay your inheritance for months—or even years. During that time, beneficiaries often face financial stress, unpaid bills, or the inability to hire a lawyer.
That’s where Approved Inheritance Cash can help. We offer inheritance loans—also known as trust advances—to beneficiaries who are waiting for their rightful share.
How It Works:
- You apply online or over the phone
- We review your inheritance claim and trust documentation
- If approved, you receive a lump sum of cash—usually within 24–72 hours
- You repay us only when you receive your inheritance
- If you don’t receive your inheritance, you owe us nothing
This non-recourse loan gives you the power to hire legal help, pay living expenses, or simply regain peace of mind.
Real-Life Example: A Trustee’s Silence and a Beneficiary’s Stress
After his father passed away, Ryan expected to receive a distribution from the family trust. His cousin, Megan, was named trustee. But months went by with no communication, no updates, and no distributions. Ryan’s emails and calls were ignored, and when he finally received a document, it was missing key financial details.
Ryan suspected that Megan was either overwhelmed—or mismanaging the trust. He hired a probate attorney, but legal fees quickly became a concern. That’s when he applied for an inheritance loan through Approved Inheritance Cash.
We reviewed the trust documents and Ryan’s position as a beneficiary. Within 48 hours, he received a cash advance that allowed him to pay his legal bills and cover his rent while waiting for the court to intervene.
Key Takeaways
- Trustees have serious legal obligations to manage and distribute trust assets fairly and responsibly.
- As a beneficiary, you have the right to transparency, fair treatment, and timely distributions.
- If the trustee fails in their duties, you can request an accounting, consult an attorney, or file a petition for removal.
- Inheritance loans from Approved Inheritance Cash help beneficiaries access funds quickly—especially when trustees cause delays or conflicts.
Need Support While Dealing With a Difficult Trustee?
If your inheritance is being delayed or mishandled by a trustee, don’t wait in silence. Approved Inheritance Cash can help you access the funds you deserve—without waiting for the trust to finally resolve.
Call us now or apply online – Fast. Confidential. Risk-Free.
