Getting things to change
A question I’m often asked is “How do I tell my trust clients that things need to change?”
If you feel things haven’t been done as well as they could have been in the past, resetting expectations can be daunting.
Two things spring to mind from a good practice perspective which may help professional trustees start the process.
1. Separate the advisory and fiduciary roles
A professional trustee is not the same as a professional adviser.
Professionals need to be clear on the distinctions between roles:
A professional advisory relationship is with a client.
A fiduciary relationship as trustees is with beneficiaries.
In an advisory relationship the client chooses whether to take the advice which has been given. Advisers have advice roles.
In a fiduciary relationship the trustee is an equal at the table. They have a decision-making role.
When you’re clear on the distinctions, its easier to provide clarity to clients and co-trustees. Help them see which hat you’re wearing at what time.
2. Show things have changed
For things to change, professional trustees must lead the change. Here’s three quick ways to demonstrate things have changed:
Hold separate trustee meetings - keep them separate from other advisory meetings.
Set an agenda when you meet - good structure brings formality and discipline.
Separate advisory fees from trustee fees - treat professional trusteeship as a job and charge a professional fee.
Know what you stand for. Start today.
Trust good practice.
Lindsay