The Trustee of a Trust performs a valuable service, both to the Grantor (Trustor) and to the Beneficiaries. By accepting the position of Trustee, you will be accepting responsibility for the administration of the Grantor’s Trust Estate.
Here’s what you can expect to do:
1. Find, evaluate and protect the Trust assets. This may entail visiting the Grantor’s home and place of business, locating the Trust Agreement and other valuable personal papers, taking charge of the Grantor’s mail, looking for insurance data and evidence of financial holdings such as bank accounts, CD’s, securities and IRAs, locking up the car and securing the premises.
2. Contact the attorney, CPA, insurance agent, bankers and others to help you locate and evaluate assets and to provide professional advice and assistance.
3. Redirect the mail and cancel unnecessary subscriptions and services.
4. Arrange to be able to sign on financial and other accounts.
5. Gather the bills and pay those which are due.
6. Authorize preparation of tax returns and arrange for the payment of all state, and federal income taxes and any estate taxes.
7. Liquidate assets, as necessary, to provide liquidity.
8. Prepare an accounting, including assets on hand at the beginning of the Trust administration, income and disbursements, and assets on hand at the end of the accounting period.
9. Distribute the net Trust estate to the beneficiaries, as the Trust Agreement requires.
The Trustee owes a fiduciary duty to the Grantor and to all the beneficiaries. You must perform your services in the best interests of the Trust Estate and all the beneficiaries, and not with a view to your own possible self-interest. You may use Trust funds to pay all reasonable Trust expenses. You may engage such professionals as attorney, CPA and bookkeeper. You may hire people to fix or clean up the house. You don’t have to do it yourself. You are entitled not only to reimbursement of reasonable out-of-pocket expenses, but also to reasonable fees for your own services. You may elect to decline the nomination, but service as a Trustee is honorable work. To carry out the wishes of the Grantor may be an important and satisfying achievement.
Jerry Kessler practices law in Santa Clarita. You may contact him at 661-255-1001 for a confidential consultation. Copyright © 1997 by Jerry Kessler