South Carolina Court Rules Trustee Must Serve Beneficiary Interests

What Happened

The South Carolina Court of Appeals affirmed a probate court decision removing William B. Walkup as trustee in the case Baskin v. Walkup (2025). Walkup served as trustee of a trust established in 1990 for Jane E. Baskin, a woman with cerebral palsy who was the sole beneficiary. The trust was created by Baskin's father specifically "for the sole benefit of my daughter, Jane E. Baskin, the sole purpose of the trust created hereunder being to provide for the well-being of Jane E. Baskin so long as she shall live."

The relationship between Walkup and Baskin deteriorated over the years, culminating in a 2020 lawsuit. Baskin testified that Walkup moved her against her will from her family home into an apartment complex he owned, citing safety concerns about her falling. When Baskin wanted to return to her home and began renovations, Walkup opposed the move, arguing the $25 - $95 (graduated by the probate estate)S.C. Code Ann. § 8-21-770(B)Verified Sep 8, 2026 of $14,400 would deplete the trust within three years. He preferred moving Baskin to a nursing home where costs could be as low as $6,600 monthly.

The probate court found that Walkup prioritized long-term investment growth over Baskin's immediate well-being, which violated the trust's stated purpose. The court removed Walkup as trustee and held him in contempt, ordering him to pay over $100,000 in attorney fees. The appeals court affirmed this decision, noting that while Walkup's financial management was "remarkable" in growing the trust from $130,000 to over $500,000, his focus on investment returns rather than the beneficiary's care violated his fiduciary duties.

What It Means

This case clarifies a fundamental principle of trust law in South Carolina: trustees must balance investment growth with the trust's stated purpose and beneficiary welfare. Under the Uniform Probate Code adopted by South Carolina, trustees face dual obligations that sometimes conflict. South Carolina Code Section 62-7-801 requires trustees to "administer the trust in good faith, in accordance with its terms and purposes and in the interests of the beneficiaries." Section 62-7-802(a) states that "a trustee shall administer the trust solely in the interest of the beneficiaries."

The Baskin decision demonstrates that when these duties conflict, courts will examine the trust's specific purpose language. In this case, the trust document explicitly stated its "sole purpose" was providing for Baskin's well-being. The appeals court found that Walkup's resistance to funding necessary care and housing modifications violated this primary directive, even though his conservative approach preserved trust assets for the future.

For South Carolina families with trusts, this ruling emphasizes the importance of clear purpose statements in trust documents. South Carolina law requires trustees to provide notice to beneficiaries within 90 daysS.C. Code §§ 62-7-813, 62-7-1005Verified Sep 15, 2026View source of assuming their role, but ongoing communication about trust administration decisions is equally critical. The court noted that "friction between the trustee and beneficiaries is ordinarily not a basis for removal" unless the communication breakdown is caused by the trustee or appears incurable.

Context from SimplyTrust

Trust administration requires careful balance between preserving assets and meeting beneficiary needs. SimplyTrust's Nevada trusts include clear language about trustee duties and beneficiary rights, helping prevent the type of conflicts seen in Baskin v. Walkup. The platform's trust documents specify that trustees must consider both the trust's purpose and beneficiary welfare when making distribution decisions.

For families concerned about trustee accountability, SimplyTrust provides resources on trustee responsibilities and selecting appropriate trustees. The platform also offers guidance on trustee liability to help both trustees and beneficiaries understand their rights and obligations under trust law.

Source: Is the Trustee's Duty to the Beneficiary or to the Trust Itself? - Gem McDowell