Trustees Won’t Be Successful Tripping Over These Traps
1 ~ Lack of Communication: Excellent communication is the most underrated of trust tasks and one of the most essential for trust success. Keeping the stakeholders informed about what is going on is critical.
Good communication helps ensure the right work is recognized as the right work.
Good communication helps ensure smooth coordination between all the stakeholders.
Good communication also assures stakeholders that they have been heard.
Good communication manages expectations. Human nature is that if we don’t know, we assume the worst.
Sometimes the “meeting before the meeting” and “the meeting after the meeting” are the most important!
2 ~ Failure to utilize existing structures, resources and advisors: Don’t be tempted to start with mass firings and redesign! The trustee who is oriented towards success tries to build on what’s good, and doesn’t start anew unless that’s necessary.
Further, it’s OK to ask for help and guidance. Too-often trustees get themselves into trouble for not obtaining the best advice— not just as to the law and investments, but also as to family dynamics and other invisible but important ingredients for success.
3 ~ Assuming their good name or relationship will get them past a short honeymoon. Though your good relationship or family connection may help you establish initial rapport, your role as trustee may well become more prominent. Whatever relationship you had with the beneficiaries may now change— forever!
The family’s structure may be stressed at the time of the trustee’s arrival. The trustee aiming for success knows that more care and attention is required not less, especially to work successfully with their own family and friends
4 ~ Thinking that rational minds will prevail. One of the strongest currents in a trust is emotions. After all, we are dealing with the highly charged topics of money, death, and family.
Unless properly framed within the current emotional and relational context, the “right decision” may fail.
Unless everyone feels they are being heard, they are not even likely to listen.
Unless the trustee recognizes this reality, he will likely blame others for not accepting his logic.
Avoiding these mistakes won’t be easy, but it will increase the likelihood of success for your trust stewarding!
© 2013 – 2023 Daniel P. Felix, all rights reserved.
