Understanding and Responding to Vulnerable Beneficiaries: Guidance for Trustees

Trustees play a crucial role in safeguarding the interests of those they serve but when it comes to vulnerable beneficiaries, the responsibility extends beyond standard fiduciary duties.

In this guest article, Holly Chantler of Morr & Co explores how trustees can recognise and respond to vulnerability among beneficiaries, outlining both the legal framework and practical steps that help ensure fairness, understanding, and protection.

From recognising signs of vulnerability to adapting communication and maintaining clear records, Holly highlights how a considered and compassionate approach can make a meaningful difference in trust management.

Trustee Duties: Legal and Practical Framework

Trustees must act in accordance with the trust instrument, statute and common law fiduciary duties. Core duties include:

• Acting in the best interests of all beneficiaries (impartiality and fairness)
• Following the terms of the trust
• Exercising reasonable care and skill
• Keeping accurate records and accounts
• Avoiding conflicts of interest
• Acting unanimously (unless the trust instrument provides otherwise)
• Complying with statutory duties, including the duty of care and the duty to take advice where appropriate

Trustees are also expected to take account of the needs and circumstances of vulnerable beneficiaries, ensuring their interests are properly protected.

Recognising Vulnerability

Vulnerability can affect any one at any time and may arise from a range of factors, including:

• Health issues (chronic illness, disability, mental health)
• Financial hardship
• Major life events (bereavement, divorce, retirement)
• Social isolation
• Age (both young and elderly beneficiaries)
• Cognitive impairment (dementia, learning disabilities)
• Lack of support networks
• Substance abuse

Trustees should be proactive in identifying vulnerability, regularly reviewing beneficiaries’ circumstances and keeping up to date with best practice and legal requirements.

Meeting the Needs of Vulnerable Beneficiaries

Adjustments to Promote Understanding and Involvement

Trustees should consider and, where appropriate, make reasonable adjustments to promote beneficiaries’ understanding and involvement in decision-making. This may include:

• Using clear, jargon-free language
• Providing information in accessible formats
• Allowing extra time for meetings or decisions
• Involving trusted advisors, family members, or advocates (with the beneficiary’s consent)
• Checking understanding and encouraging questions

Capacity and Information Sharing

If a trustee has concerns about a beneficiaries capacity, they may require a specialist capacity assessment to be carried out.  The assessment should address the decision in question.

If a beneficiary lacks mental capacity to make decisions, trustees must:

• Ensure that information is only shared with someone who is legally authorised to act on the beneficiary’s behalf (such as an attorney authorised to act beyond a loss of capacity) or where the law permits it (such as pursuant to a court order)
• Keep clear records of any assessments of capacity and the basis for sharing information
• Continue to act in the best interests of the incapacitated beneficiary, seeking professional advice where necessary

Effective Communication and Record-Keeping

Trustees should:

• Exercise active listening and empathy
• Consider regular check-ins with vulnerable beneficiaries
• Document all communications and decisions, including the basis for decisions affecting vulnerable beneficiaries
• Demonstrate that decisions are made in the best interests of the individual and the trust as a whole

Policy Development and Review

Trustees should:

• Develop and regularly review policies for identifying and supporting vulnerable beneficiaries
• Involve beneficiaries and stakeholders in policy development where possible
• Signpost beneficiaries to external support services (e.g., social services, advocacy, mental health support) where appropriate
• Develop partnerships with local agencies to strengthen support for vulnerable individuals

Conclusion

Trustees play a vital role in safeguarding the interests of vulnerable beneficiaries. By understanding the triggers and factors contributing to vulnerability, complying with legal duties, making reasonable adjustments, and adopting effective communication and safeguarding strategies, trustees can provide the necessary support to ensure the well-being and involvement of all beneficiaries.

Holly is one of the UK’s leading specialists in supporting elderly and vulnerable clients, with particular expertise in Court of Protection matters. As head of Morr & Co’s Private Client department, Holly combines extensive legal knowledge with a deep understanding of the sensitive nature of her work.

As one of the UK’s foremost experts in mental capacity law, Holly holds several prestigious appointments, including Panel Deputy and Panel Guardian. She is a founding member and director of the Professional Deputies Forum and sits on the Court of Protection Rules Committee, helping shape the future of mental capacity law.

Holly is a recognised authority in her field, having authored ‘A Practical Guide to Assessing Mental Capacity’ and co-authored both the Law Society’s Elderly Client Handbook (6th Edition) and ‘Finance & Law for the Older Client’ (LexisNexis Butterworths). She regularly shares her expertise through lectures for MBL and other professional organisations, and has been invited to speak at numerous national conferences on mental capacity and elderly client matters.