View
235
Download
0
Category
Tags:
Preview:
Citation preview
TRUSTEE DUTIES AND RESPONSIBILITIES
CHOOSING A TRUSTEE
WHAT IS A TRUST?
Trusts are often used by a wide variety of people to accomplish a wide variety of estate planning
goals
At its most basic, a trust requires five elements:
Maker – also referred to as a trustor or settlor. The maker is
the person who creates the trust, appoints the trustee,
funds the trust and dictates the terms
Trustee – the trustee is a third party to whom the maker of the
trust entrusts the assets
Beneficiary – the person, entity, or even animal that will benefit
from the trust
Assets – sufficient assets must be transferred into the trust for the trust to function as intended
Terms – the maker of the trust must decide the terms of the trust that will dictate how the
trustee administers and manages the trust
WHAT DOES A TRUSTEE DO?
Even a simple trust requires the trustee to fulfill a number of
important duties and responsibilities, including:
Fiduciary Duty – the trustee of a trust has a fiduciary duty to
both present and future beneficiaries of the trust. In
simple terms, this means that the trustee must use the utmost
care when managing and investing the trust assets
Trust Terms – unless a term in the trust is illegal, impossible to
fulfill, or unconscionable, the trustee is obligated to follow the terms as set out by the maker of
the trust
Duty to Beneficiaries – the trustee has a duty to communicate with all
beneficiaries, both current and future, regarding trust business. The trustee is also responsible for making all scheduled and
discretionary distributions from the trust to the beneficiaries
Accounting and Taxes – a trustee must keep thorough records of all trust business,
including a record of all investments made by the trust,
expenses incurred and distributions made. The trustee
is also responsible for preparing, filing, and paying all
tax debts of the trust
WHO SHOULD I NAME AS TRUSTEE OF MY TRUST?
The right trustee can add to the overall success of your trust
The wrong trustee, on the other hand, can contribute to the failure
of a trust
A spouse/family member/friend may not be the best choice
because he or she may lack the knowledge, experience, and skill
needed to do the job
In addition, a professional trustee has the time needed to manage
the trust
Finally, using a professional trustee often avoids conflict and
disputes
GIFTING IN YOUR WILL
The law considers your pet to be your legal property
Therefore, your pet can be bequeathed to someone in your
Last Will and Testament
While this does provide for the legal transfer of ownership,
significant disadvantages remain, including:
Does not cover incapacity
Caregiver may be unavailable
No continuing control over assets once gifted
No continuing control over pet’s care once gifted
CREATING A PET TRUST
To ensure that your pet is well cared for under any
circumstances that could arise down the road a pet trust provides
the best of all worlds
Consider some of the many benefits a pet trust provides:
Continued control – a trust allows you to exert control over both your assets and your pet long after your incapacity or
death. By creating specific trust terms you can control as much, or as little, of your pet’s life as
you wish. The trust terms, along with the trustee you choose, will
also allow continued control over the assets transferred into
the trust
Legally binding – a trust is a separate legal entity once it takes effect. The terms of a
trust are enforceable in a court of law should it become
necessary to do so
Contemplates incapacity – a pet trust is the only option that
contemplates your incapacity. Your trust terms can cause the trust to take effect upon your
incapacity as well as your death
Covers contingencies – you have the ability to name both successor trustees and
successor caretakers should something happen to one or the
other
LEARN MORE ABOUT TRUSTEE DUTIES
IN PORTLAND OREGON
LEARN MORE ABOUT LGBT PLANNING IN PORTLAND
OREGON
LEARN MORE ABOUT TRUSTEE DUTIES
IN PORTLAND OREGON
Recommended