When a person gets estate planning done, they will have to appoint someone to act as a trustee. It is usually a close family member, loved one, friend, or family friend who is appointed as a trustee to serve the family trust. For someone to be appointed as a trustee, they may have a lot of experience, or they may have none at all. However, trustees must have a proper understanding of all the legal implications, and responsibilities they have attached to this honorable position.

Trustees should make sure they first take the precaution and the time to read the trust instrument carefully. This document explains the powers they have and the rights of the beneficiaries as well.  No one should make the mistake of assuming they already know the powers and duties they have. They must understand their role properly, so they do not end up doing something outside the folds of the law.

In most cases, a trustee will have all the powers that an owner has on their assets. However, trust instruments sometimes put a limit to this power that the trustee has over the trust property just to ensure that their wishes are properly carried out.

It is also important to keep in mind that the terms of a trust are private, and a person must prioritize confidentiality. This means that the trustee should make sure to honor their role and even if an institution asks for a copy of the trust instrument, they should provide a trust certification instead. The trust certificate contains the information the institution requires such as:

Name and date of the trust

  • The name of the settlor
  • The relevant powers of the trustee
  • The name and address of the trustee

What is the point of a Trust in Saint George, Utah?

The main purpose of a trust is so that the beneficiaries benefit. The trust is not left behind for the trustee, and the trustee is simply responsible for managing the affairs once the trust owner is unable to do it for themselves. The beneficiaries should be kept informed at all times and the trustee should never prioritize their benefit above the others.

The trustee has the job of treating beneficiaries impartially, segregate trust assets, file tax returns, and most importantly, they must responsibly administer the trust. They must also prudently invest the funds.

Anyone who is making an estate plan or has been appointed as a trustee should speak with an estate attorney so they understand the legal implications of what they are doing and so they keep their loved ones safe and happy.

Speak to an estate attorney today at the Law Office of Barney, Mckenna, and Olmstead.

Reach them at:

 

SAINT GEORGE

43 South 100 East

Suite 300

(435) 628-1711

or

MESQUITE

590 W Mesquite Boulevard

Suite 202A

(702) 346-3100

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