Have you been named the Trustee of a Trust Fund? If so, do you know what your responsibilities are? Unfortunately, many people who accept this role are unsure of what they must do. As such, it’s imperative to understand what you must do and the mistakes often made by Trustees so you can be prepared to take on this role. The following blog explores what you should know about these matters and why it’s in your best interest to connect with an experienced Medina, Ohio estate planning lawyer. Keep reading to learn more about this role and what you are expected to do.
What Is a Trustee and What Are Their Responsibilities?
If you have been appointed as the Trustee of a Trust Fund, you become the legal owner of the Trust and are responsible for managing it according to the terms and conditions listed by the Testator, or creator of the Trust. As such, some responsibilities include, but are by no means limited to, the following:
- Investing in the Trust according to the wishes of the Testator
- Administering assets to Beneficiaries
- Making decisions regarding the Trust
- Filin taxes and preparing statements on behalf of the Trust
- Communicating regularly with Beneficiaries
What Mistakes Do Trustees Often Make?
In many instances, the most common mistake Trustees make is failing to understand the responsibilities and duties they must adhere to. Though being named a Trustee is an honor and shows the Testator held you in high regard, the obligations this role holds can be overwhelming. As such, many do not have the time or ability to fulfill their duties. Additionally, many are unaware that they can be held personally liable for the actions they carry out as the Trustee. This is because assuming this role comes with Fiduciary Duty, which means you are legally obligated to act in the best interest of the Trust. Failure to do so can result in legal issues.
Another common mistake Trustees make is failing to communicate with beneficiaries. Unfortunately, if you do not keep Beneficiaries informed about the Trust, it can lead to several legal issues. Not only are you legally obligated to inform Beneficiaries of the Testators passing, but failure to provide updates about assets can create a wealth of financial and legal issues.
If I’m in Charge of a Trust, Can an Attorney Help Me?
When you are put in charge of a Trust Fund, you may be overwhelmed by the responsibilities and potential legal liability. As such, it’s imperative to understand that you can enlist the assistance of an experienced attorney to help you through this process.
At Krause Law, our firm understands that becoming a Trustee is not a decision that should be made lightly. That’s why we are proud to help those willing to fulfill this role overcome the challenges they may face. When you need assistance, we can help. Connect with our team today to learn how we can guide you through these matters.
