How Should a Trustee Select a Realtor

Ask Phyllis: a blog series of frequently asked real estate questions.

How Should a Trustee Select a Realtor

Dear Phyllis,

My mother passed earlier this year. She had been living with my brother and his wife. As the eldest daughter, my mother originally named me as the trustee of her trust. However, I later learned that about six months before she passed, my brother had her amend the trust to name him as trustee instead. I am unsure why this change was so important to him or necessary.

I work in the financial services industry and am fully capable of serving in this role. Now, as the sole trustee, my brother has decided to hire a friend to sell my mother’s home. I know very little about this individual, other than that he is not particularly active in real estate. I am also concerned about whether this agent has adequate experience with trust sales. My sister and I have asked my brother to interview another real estate agent. We offered several suggestions, but he refused. I know that this is his decision, but I think he is being reckless. I have been following your column for years and am hoping you have some sound advice.

MM

Dear MM.,

Being a trustee is a lot of work, and the trustee can only take a small fee. It is really not enough to compensate for their time and effort. There is typically so much paperwork involved, and beneficiaries to account for as well.

Assuming there is a trust attorney, why don’t you address your concerns with them? If there is no attorney, you might consider consulting with one. The only other suggestion I can make, as a Realtor and not an attorney, is that you and your sister might send your brother a letter via certified mail, stating that you believe it is his fiduciary duty to interview at least one other real estate agent. Best of luck to you in this tricky situation.