Too Many “Cooks” Spoil the Trust

Trusts can serve as an excellent vehicle to provide for your loved ones once you are gone. However, sometimes, a trust can be ill-drafted or pose more problems than support. This is especially true when there are too many parties with unique powers appointed under the trust, thereby affirming the old adage of “too many cooks in the kitchen.” Individuals with specific authorities under the trust may not always see eye-to-eye on a given asset or decision.

We often see this sort of “tug of war” playout between an appointed trustee and a named “trust protector” under the trust. A trust protector is an uncommon and unique role separate from the trustee where that person is given specific powers to oversee either the trust or trustee to achieve the settlor’s intent. In Illinois, a trust protector is any person given any one of the powers specified in 760 ILCS 3/808(d). That list includes the ability to alter the trust instrument for a more forgiving tax status, modify the terms of any power of appointment, remove and appoint new trustees, terminate the trust, change the situs of the trust, and more.

When a trustee and trust protector are not aligned, this can lead to an inefficient administration of the trust and even cost the beneficiaries a substantial sum in unnecessary fees and costs.

If you or a loved one are standing on the sideline watching a trust fall victim to waste by an inefficient administration, you should speak to a qualified attorney about the various causes of action you may have to assert your rights under the trust.

In cases of conflicting authority under a trust or any trust administration dispute, the vital issues are to discern the settlor’s intent and whether this intent is being properly effectuated by the responsible parties.

If you would like more information about this topic, or any other estate issue, contact attorney Nataly Kaiser at nkaiser@lavellelaw.com or 847-705-9763.