Trustee Duties

Did your parents have a trust, and now you find yourself a “trustee”? Or, do you need to “choose” a successor trustee for your own trust, in the event you become incapacitated or pass away?
Is being a trustee a “big deal”? The short answer – yes. A Living Trust is a contract, and must be handled according to its written terms. Those terms, hopefully, and if written by an experienced lawyer, are clear. However, if the terms are ambiguous or contradictory, a probate judge may be needed to direct the trustee.
A trustee is a “fiduciary”, and there are many duties and responsibilities that go with the job. Here are just a few of those duties:
• A trustee must be “loyal” to the beneficiaries and act in their best interests
• A trustee must act as a reasonably prudent person would
• A trustee must not take actions that benefit themselves
• A trustee must keep the beneficiaries informed and provide reports called “accountings” of how money flows in and out
• A trustee must ensure taxes, bills, and other creditors are satisfied
There are many more responsibilities, and the job can get difficult if beneficiaries are disgruntled, if there are houses to clean out and sell, or if the adult children argue about personal items in the house. Other complications involve assets that are difficult to collect or sell, assets that were not properly titled in the trust, or assets that pay to the “estate”. All in all, being a trustee can be a difficult job. It is very important to make the trustee’s job as easy as possible by consulting an experienced attorney who will guide you through the process.
For an appointment, please call the McNamara Law Firm, PC, at 661-287-3260, or visit www.theMcNamaraLawFirm.com.