If you are interested in creating a Trust Fund, whether to provide greater protection for your assets or to bypass the Probate process, there may be one important factor you’ve failed to consider – who will serve as your Trustee! This is an incredibly important role with a considerable amount of responsibilities, so understanding what is expected of a Trustee can help ensure you appoint the right person. If you’re unsure what you should consider, the following blog explores what is expected of this entity and the importance of working with a Medina County, Ohio Trust preparation lawyer to help you navigate this complicated legal process to help you achieve peace of mind.
What Responsibilities Does a Trustee Have?
A Trustee is a person appointed by the creator of a Trust Fund to manage it while overseeing the distribution of assets from the Fund in accordance with the terms and conditions established by the creator. While managing the Trust and distributing assets are the primary responsibilities, your Trustee must also maintain records of all transactions, file taxes for the Trust, and maintain open lines of communication with Beneficiaries.
In addition, Trustees also have what’s known as fiduciary duties. Essentially, this means they must always act in the best interest of the Trust, including remaining impartial and meeting due diligence standards when making decisions.
Trustees can also face challenges, as this is often a complicated role, requiring them to make important decisions. For example, they are responsible for handling any disputes that may arise among Beneficiaries and also managing their time, as this can be a time-consuming responsibility.
Who Should I Appoint to This Role?
Because a Trustee has a considerable number of responsibilities, it’s imperative to ensure you carefully consider who you wish to appoint to this role. This is not a decision that should be made lightly, as it’s incredibly important to ensure you appoint the best possible candidate to this role.
Generally, you’ll want to ensure that the person you are considering is responsible, trustworthy, and organized. Not only are they managing a considerable amount of money on your behalf, but they must be able to keep detailed records of the transactions while also communicating with Beneficiaries. Not only can this help build a trustworthy relationship between your Beneficiaries and Trustees, but keeping records can help avoid any disputes that could potentially arise in the future.
As you can see, managing a Trust is not a job that should be taken lightly. There are several important responsibilities your choice must navigate, which is why you must consider who you wish to serve as your Trustee carefully. As such, it’s in your best interest to connect with an experienced attorney at Krause Law. Our dedicated estate planning team can help you not only establish your Trust Fund, but we can also talk through your Trustee options to help you make the best possible decision. Contact us today to learn more.
