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