When personal views and trustee duties collide: practical considerations for trustees

Trustees are often chosen because they have strong  values and sound judgment. In practice, however, those same qualities can create challenges where personal views conflict with trustees’ legal obligations. This can make decision-making difficult, especially when trustees are dealing with family members or vulnerable beneficiaries.

This article outlines trustees’ core duties, considers situations where conflicts may arise, and explores practical steps trustees can take to manage them.

Trustees’ duties under Scots law

At the core of these duties is the requirement to act in good faith and in the interests of the beneficiaries, rather than in the trustees’ own interests.

Key trustee duties include:

• Acting in accordance with the trust deed
• Acting in the interests of the beneficiaries
• Exercising a duty of care to the beneficiaries
• Properly controlling and safeguarding trust property
• Keeping accurate records and accounts
• Avoiding conflicts of interest
• Duty to take advice where necessary
• Duty to invest trust property

A trustee who fails to comply with these duties may be found to be in breach of trust and a beneficiary may choose to bring a claim against them. The consequences of a successful claim may include being removed as a trustee or even having to recompensate the trust from their personal funds.

Where personal conflicts can arise

Conflicts between personal views and trustee duties can arise in a number of situations, including:

Ethical investment concerns
Trustees have a duty to invest trust funds which are not required for immediate distribution. Difficulties can arise where a trustee has ethical objections to certain investments, such as fossil fuels, tobacco, or gambling, even where those investments may offer strong financial returns.

Family relationships and emotional influence
Trustees and beneficiaries are, in many cases, family members or close acquaintances, and this emotional involvement can lead to pressure on trustees to favour one beneficiary over others. Scots law is clear that trustees must act impartially and must not allow personal relationships or emotions to skew their decision-making.

Beneficiary conduct
Trustees may feel uncomfortable making payments to beneficiaries whose lifestyle, spending habits, or personal choices they disapprove of. While those concerns may be sincerely held, personal disapproval shouldn’t influence the decision-making process unless the trust deed expressly permits trustees to take such factors into account.

Religious or cultural objections
Trustees may feel conflicted about making particular payments or investments on religious or cultural grounds. While such concerns may be sincerely held, trustees must be careful not to allow them to influence their decision-making unless the trust deed expressly permits those factors to be considered.

Practical steps for trustees

Where a trustee feels their personal views conflict with their duties, it’s vital to manage the situation carefully and ensure decisions are taken lawfully, objectively, and in accordance with the trust deed. In many cases, there are practical steps trustees can take to navigate these difficulties without breaching their duties.

1. Start with the trust deed

The starting point should always be the trust deed itself. Trustees should ask:

• What is the purpose of the trust?
• What powers are conferred on the trustees?
• Are there any express restrictions or guidance on decision‑making (e.g. ethical considerations, lifestyle conditions or restrictions on investment)?

Where the deed provides a framework for decision-making, following it will help trustees remain compliant and reduce the scope for personal conflict. Where the deed is clear, trustees must follow it, regardless of personal discomfort.

2. Take independent advice

Seeking independent legal, financial, tax or investment advice can help distance personal views from the decision-making process. Professional advice allows trustees to demonstrate that decisions have been taken on an informed and objective basis, rather than being driven by moral preference. It can also provide reassurance where trustees feel uncomfortable and may reveal alternative approaches to achieve an acceptable outcome within the trustees’ powers.

3. Delegate decision-making

Where the trust deed allows, trustees may be able to delegate certain decisions to appropriately qualified third parties. This can be particularly useful where trustees have ethical concerns regarding investments and choose to appoint an investment manager. While trustees retain overall responsibility for the trust property and must continue to supervise investments, delegation can reduce the need for trustees to make hands-on decisions that may conflict with their personal beliefs.

4. Ensure collective decision-making

Where there is more than one trustee, decisions should be taken collectively. Trustees should ensure discussions are properly minuted and that decisions reflect a genuine balancing of relevant considerations. A trustee who has strong personal objections may still participate in the discussion but should take care not to obstruct the decision-making process on moral grounds alone.

5. Apply to the court for directions

Where trustees are genuinely deadlocked or uncertain, it may be appropriate to seek directions from the court. While this is not a step to be taken lightly, it can provide clarity and protection for trustees acting in good faith who face difficult or morally sensitive decisions.

6. Resignation as a last resort

If a trustee finds that their personal views consistently prevent them from carrying out their duties, resignation may ultimately be the best option. While this should be a last resort, stepping aside can sometimes be preferable to remaining in a role where conflicts are unavoidable and risk exposing the trustee to challenge or liability.

How we can help

Emma Read is a Director in the Private Client team at Anderson Strathern, based in Edinburgh. Dual-qualified in Scotland and England & Wales, she advises individuals, families, trustees, and business owners on estate planning, succession, and tax mitigation strategies.

If you would like advice on any of the issues raised in this article, you can contact Emma here.