Estate Planning Newsletter

• Formal Requirements of Wills & Witnesses
  A witnessed will is only one of several different types of wills. It is also referred to as a “formal” or “attested” will, and involves the eyewitness participation of other... Read more.
• The Passing of Assets to Named Beneficiaries from a Totten Trust
  A decedent’s assets may be transferred upon their death to their heirs or other beneficiaries through probate. “Probate” is the legal process by which a court determines who receives a decedent’s assets under... Read more.
• Affixing a Value on an Estate
  Assets owned by a person at the time of their death, whether real or personal property, is commonly referred to as the decedent’s “estate.” After the person dies, the property or proceeds from the sale of such property... Read more.
• Setting Up a Special Needs Trust for the Benefit of the Disabled
  Some government statistics estimate that between 15% and 20% of all Americans have some form of disability. It is also estimated that the majority of disabled persons will need to avail themselves of public assistance to help pay the... Read more.

• 4 Reasons to Think About Estate Planning, Even if You’re Not a Millionaire
• A trust fund gives you control over your money after you’re gone, and it’s not just for the super rich
• When Adult Children Can Be Required To Pay For Their Parents’ Long-Term Care
• 4 Ways To Improve Your Estate Plan
• The Most Important Estate Planning Documents

What are the Duties of a Trustee?

Every trust must have a trustee to properly administer the elements of the trust. Trustees can be individuals, financial institutions or even organizations.

A trustee follows the precise instructions of the trustor (or the trustor’s authorized representative), and also adheres to rules imposed by law.

Prudent Person Rule

Trustees are subject to the “prudent person” rule. This rule states that trustees should use the same standard of care and diligence that any sensible person would use in managing property. Additionally, a trustee should make a strong effort and utilize all of his/her skills in caring for the trustor’s property.

Responsibilities

A trustee has the duty to accomplish the following:

• Administer internal affairs
• Manage property
• Invest property
• Distribute income and principal
• Deal with beneficiaries impartially
• Use discretion over the important areas of the trust

Beneficiaries

A trustee has a fiduciary duty to the trust’s beneficiaries as well as to the trustor. In dealing with beneficiaries, a trustee should:

• Use property only for the beneficiaries’ interest
• Disclose important facts
• Provide additional information related to the trust upon request of the beneficiaries

Improper Activity

A trustee should not:

• Use trust property for personal benefit or purposes not related to the trust
• Acquire interests in conflict with those of the beneficiary
• Sell property to himself/herself
• Delegate his/her duties to another individual

If a trustee is suspected of improper activity or misuse of his/her discretionary decision-making powers, the court will review the trustee’s actions after a petition is filed by the trustor or any beneficiary. A trustee may also petition the court for a review if beneficiaries question his/her decisions.

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