Trustee's Duty to Enforce and Defend

Active Protection, Not Passive Oversight

Being a trustee is not just about managing assets and distributing them to beneficiaries. It also means protecting the trust's legal interests. The duty to enforce claims and defend against them is a core part of trust administration.

On the enforcement side, the trustee must act when the trust has a valid claim. That could mean collecting debts owed to the trust, pursuing insurance claims, or taking legal action against someone who damaged trust property. A trustee who ignores a valid claim may face a breach of fiduciary duty allegation.

When the Trust Faces a Claim

On the defense side, the trustee must act to respond to lawsuits, creditor claims, or other legal challenges directed at the trust. Failing to respond could result in a default judgment. That outcome can cost the trust and its beneficiaries significantly.

The standard is reasonableness, not perfection. A trustee does not have to pursue every possible claim regardless of cost. If the expense of litigation outweighs the potential recovery, a prudent trustee might reasonably decide not to proceed. But the duty to act requires at least evaluating the situation and making an informed decision in good faith.

Sometimes a trustee may need to seek legal counsel to determine the best course of action. The cost of that advice is generally a proper expense to administer the trust.

For families selecting a successor trustee, this duty matters. A trustee who avoids conflict or ignores legal matters can put the entire trust at risk. The role requires someone willing to engage with difficult situations when they arise.

Understanding this duty also helps beneficiaries. If a trustee fails to enforce a valid claim or defend against a meritless one, that inaction could itself be a breach of fiduciary duty. Beneficiaries have the right to hold the trustee accountable for those failures.