“My Sister Is Stealing from the Trust!”  – What to Do When You Suspect Trustee Misconduct

Trusts can be an effective tool for managing and distributing assets, but they can also create conflict, especially after the death of the person who created the trust. One of the most common complaints we hear is, “My sister (or brother!) is stealing from the trust.” Whether or not that turns out to be true, this kind of concern often arises when a family member is serving as trustee and communication breaks down. 

In Ohio, most trust litigation involves irrevocable trusts. A revocable living trust can be changed or revoked while the grantor is still alive, but after the grantor’s death, the trust usually becomes irrevocable. At that point, the trustee is responsible for managing and distributing the trust according to its terms and in compliance with Ohio’s trust laws. Unfortunately, the grantor is no longer around to clarify what they wanted, so disputes often arise among beneficiaries who have different interpretations or suspicions. 

READ MORE: How to Contest a Will In Ohio

The Ohio Trust Code sets out clear responsibilities for trustees. They must act in the best interests of the beneficiaries, avoid self-dealing, provide regular accountings, and follow the terms of the trust. But problems can still occur. Sometimes a trustee withholds information, fails to distribute assets fairly, or even misuses funds. In other cases, the trust document itself may be ambiguous, or contain errors or omissions that create confusion. Beneficiaries may also disagree about how to interpret the trust or whether the trustee is handling things properly. 

These situations can be complicated. Not every concern turns into a lawsuit, and sometimes better communication or legal guidance can help resolve the problem. But when a trustee refuses to provide information, ignores his or her duties, or acts in bad faith, litigation may become necessary. Ohio courts can compel a trustee to provide an accounting, suspend or remove a trustee, and even order repayment if funds were mishandled. 

READ MORE: Preventing Trust Disputes

Trust disputes are often emotionally charged, especially when family members are involved. But understanding the trustee’s duties, the rights of beneficiaries, and the legal framework behind trust administration can help bring clarity and resolution to a difficult situation.