By Suzanne McVicker When accepting the position as Trustee of a trust, it is important to be familiar with the legal duties of a Trustee. A Trustee has a duty to administer a trust as a prudent person would, in good faith, in accordance with the terms, purpose, and circumstances of the trust, in the interests of the trust beneficiaries, in accordance with applicable laws, exercising reasonable care, skill and caution. A Trustee has a duty to keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and the material facts necessary for the beneficiaries to protect their interests. One of the first duties of a Trustee is providing notice to the trust beneficiaries regarding the trust administration. It is generally advisable for all such notices to be in writing, and the notice must contain specific details. The Trustee has a duty of recordkeeping, and should always keep detailed records of every transaction of trust activity. The Trustee generally must provide the beneficiaries with a report (sometimes referred to as an accounting) detailing all of the trust activity and may need to petition the court for approval of the report. The Trustee has a duty to take reasonable steps to collect, control, and protect trust property. Commonly, a Trustee will need to retitle bank accounts, secure a residence, file insurance claims, and maintain insurance on trust assets. The Trustee should never commingle trust assets with their own personal assets, or assets of another trust. There will be costs in administering the trust, and those costs must be reasonable in relation to the trust property, the purpose of the trust, and the skills of the trustee. The Trustee has a duty to enforce and defend claims. If the Trust is owed money, or if there is a pending lawsuit, the Trustee must takes steps to collect the money owed, and defend or pursue lawsuits, as the case may be. The Trustee has a duty to comply with the Prudent Investor Rule, which requires the Trustee to invest and manage trust assets as prudent person would, by considering the purposes, terms, distribution requirements and other circumstances of the trust, exercising reasonable care, skill, and caution. Occasionally, exceptions to the prudent investor rule are written into the trust document for assets such as stock in a family owned or closely-held business. Find out more at: https://ift.tt/3fh27rJ Via https://twosprucelaw.com/videos/duties-of-trust-administration-1
0 Comments
Leave a Reply. |
About UsIf you need gentle, supportive guidance to deal with planning for your death or the death of someone close to you, then you’ve come to the right place. At Two Spruce Law—a Bend, Oregon-based firm that specializes in probate law and estate planning—we practice law in a personal way that honors the integrity of all involved. ArchivesNo Archives Categories |