What Are the Duties of a Trustee in Administering a Trust?
There are many responsibilities that you have taken on by agreeing to serve as a trustee. The trustee serves as the legal owner of the assets of the trust and, therefore, manages and distributes those assets and ensures that tax or other financial obligations are met. Some of the duties and responsibilities of a trustee include:
Confirming Key Elements: Once you take over as trustee, you must confirm that all past records have been properly completed, that you know who the beneficiaries are, and that the terms of the trust are clear to you and that the assets are safe and in your control.
Investing and Managing Trust Assets: It is the trustee’s responsibility, in some cases, to invest the assets of a trust in order to ensure that the assets remain protected and productive for current and future beneficiaries.
Administering the Trust According to its Terms: The trustee must administer the trust, which usually involves distributing assets to beneficiaries according to the terms laid out in the trust.
Making Decisions: In some cases, the trust grants the trustee authority to decide when and in what amounts and beneficiaries may receive payments or even whether they receive payments at all.
Keeping Records: The trustee must prepare and file any and all required records of the trust and must keep all records on file.
Preparing and Filing Taxes: All taxes must be prepared and filed by the trustee, and the trustee must make any tax-related decisions that arise concerning the trust.
Communicating with Beneficiaries: The trustee must maintain regular contact with beneficiaries, including providing statements and tax documents.
Answering Beneficiaries’ Questions: Beneficiaries turn to the trustee to answer any questions they have about the trust or its administration.
Acting in the Best Interest of the Beneficiary: This is perhaps the most important responsibility of the trustee. All actions and decisions made must be for the benefit of the beneficiaries. If this is not true, the trustee will be held legally accountable for mismanaging the trust.
What if I Don’t Want to be the Trustee?
If the grantor of the trust chooses you to be the trustee, it'S best TO honor their wishes if you fulfill that role. You don’t have to do it alone; skilled and knowledgeable trust administration attorneys at the Law Office of Polly Tatum can help you learn about your responsibilities, guide you through their fulfillment, and answer any questions you have along the way. If this still is not enough and you do not want to serve as trustee, the trust will include a successor trustee to whom the role will pass if you decline.
Law Office of Polly Tatum
19 Cedar St Worcester, MA 01609
(774) 366-3688
https://www.LawOfficeOfPollyTatum.com
