Some brokers and advisers wear trustees's hats for special clients, meaning they may deal with demanding heirs who expect them to spend significant time and energy on their seemingly growing needs.  Before that broker or adviser reaches the breaking point, have them consider some "Do's and Don'ts for Heirs and Trustees, courtesy of The WSJournal.

Take for example, a "trust-fund baby" who sometimes can have an exaggerated sense of entitlement.  Even when those babies grow older, some still act like brats, believing they not only inherited money but also the right to treat an adviser or a trustee like a servant.  And then there are disgruntled and obstinate heirs.

    Case of W.A.K. II v. Wachovia.   A minor recently sued Wachovia Bank, and lost, over its handling of a trust created by his grandmother.  His main complaint was that the bank didn't diversify stock held in the trust;  his grandfather was serving as co-trustee, and both his grandfather and father had approved the holding of the stock.  The case is on appeal reportedly on the question of whether a professional trustee has a duty to educate a co-trustee about diversifying investments.

Angry heirs don't always sue, but many vent over the phone and in person. A rise in rudeness now may stem from economic hard times, with people feeling desperate about the need to draw on a trust or worried that its investments are dwindling.  An heir may call a series of meetings, with dialogue getting more and more heated.  In one case, an adviser got urgent requests from the parent of a child named in a trust, pressuring for disbursements that weren't warranted.

Professional trustees are trained to handle hostility and usually manage to keep a cool head.  But let's face it - brokers and advisers usually aren't trained as professional trustees and, sometimes, one who's supposed to keep a stiff upper lip with a beneficiary makes the mistake of venting to another, who turns around and repeats the conversation.  And the worst thing a trustee can ever do is get mad. 

For further details, along with "Do's and Don'ts," click onto:   [ WSJournal's 'Trustee's Survival Guide', 11/1 ]