What Are the Duties of Being a Trustee?
For some people, estate planning means instituting a trust. While there are several types of trusts that can be funded and put into place, choosing the correct trust is essential to reach your goal. Every trust must designate a trustee. If the Trustee happens to be you, you will have certain duties that need to be carried out. Read on, as we will explain what those duties entail.
What is a Trust?
First, it is important to explain what a trust is. There are a number of options when it comes to trusts, from irrevocable trusts, to living trusts. They all serve a specific purpose, depending on a person’s needs. However, there are certain things that all trusts have in common. As mentioned, a trustee must be named when establishing a trust, and that person will oversee the trust. In the case of an irrevocable trust, that means the trustee will be the one to ensure that it is followed upon your death. In a living trust, a person will be able to manage assets and make changes up until the time of their death. Which type is right for the person depends on their circumstances, and the reasons behind creating the trust.
Why Have a Trust?
A common reason for establishing a trust is to avoid going to court over an estate after a person dies. This process is called probate. A trust can bypass that process, making it much easier on families in the aftermath of a death. Also saving them the money that might be involved with court cases. Irrevocable and revocable trusts can both be used to avoid the probate process. There are other ways to avoid probate, especially for smaller estates.
Trusts also provide privacy, which may be important to some people. The probate process is publicly available, so any information about your assets could be made public. In a trust, the only people who will have information about your property or assets are the trustee, and the beneficiaries.
What if I am Appointed as Trustee?
If you have been chosen as the trustee of a trust, the grantor should make you familiar with the provisions of the trust. You should know where all of the documents regarding the trust are. It’s your job to manage the assets in the trust. While some people are private about their finances, it may be a good time to make sure appropriate titles and beneficiary designations have been changed to the trust.
One of the more important things for a trustee to remember is that the assets in the trust are not theirs unless they are also the grantor. The job the trustee has is to safeguard the assets for the grantor, if alive, and the beneficiaries. The most important responsibility is that the trustee has to follow the instructions of the trust document. There are also things you cannot do, such as mixing assets with that of the trust, or using the assets to benefit themselves. It is also part of the job to treat the beneficiaries fairly, invest the assets in a prudent manner, and keep thorough, detailed records of investments made and tax documents. Records must be reported to the beneficiaries as required by the trust.
Contact an Estate Planning Lawyer
If you have been chosen to be the trustee for someone’s trust, is a duty to be carried out with great care. It is always beneficial to speak with an experienced estate planning attorney, as they will be able to guide you through the process, and help you make the best decisions possible. For questions about Trusts, Estates, or being a Trustee, call The Mattar Firm today. Bonita Springs: 239-2222. Tampa: 844-444-4444.