This is a conversation I have all the time with my clients but it bears repeating in this blog. A trustee should be, first and foremost, a “trustworthy” person. A trustworthy trustee acknowledges the challenges and responsibilities of holding this position. Accordingly, if you are establishing a trust or being asked to engage as trustee under one, then you should give thorough consideration to the attending responsibilities and potential liabilities.
An article titled “A Brief Overview of a Trustee's Duties” is worth a look. The article offers eight crucial elements you need to understand and address, specifically: fiduciary responsibility, the trust’s terms, investment standards, distributions, accounting, taxes, delegation and fees. Essentially, you must fully appreciate that the role of a trustee is jointly moral, legal, and fiduciary.
You have a duty to the beneficiaries, a duty to the language of the trust (the express intent of the trust maker), and a duty to the assets themselves. This duty can be a treacherous tightrope to walk. If you are establishing a trust, understanding this means finding someone who would do as you would do, or better. And if you are a would-be trustee, understanding this means understanding your role and its rewards.
You can learn more about this topic as well as other strategies on our website under the tab entitled: estate planning in Virginia. Be sure you also sign up for our complimentary e-newsletter so that you may be informed of all the latest issues that could affect you, your loved ones and your estate planning. However, proper estate planning is not a do-it-yourself project. Why not call us for a complimentary consultation at 757-259-0707.
Reference: ElderLawAnswers.com (May 2012) “A Brief Overview of a Trustee's Duties”