How to Choose a Trustee - ElderLawAnswers If you aren't comfortable with having a stranger manage the trust, it may be possible to choose a family member and a professional trustee as co-trustees The downside to hiring an independent trustee is that the trustee will charge a fee, which is usually a percentage of the trust
A Brief Overview of a Trustees Duties - ElderLawAnswers Trustees are entitled to reasonable fees for their services Family members often do not accept fees, though that can depend on the work involved in a particular case, the relationship of the family member, and whether the family member trustee has been chosen due to his or her professional expertise Determining what is reasonable can be
How Much Should a Trustee Be Compensated? - ElderLawAnswers Depending on the trust, a trustee’s duties can include managing trust assets, making distributions to beneficiaries, paying taxes, and creating an annual report of all income and distributions Performing these tasks can involve a lot of work, so it makes sense that trustees are compensated for their time
Why and How to Change an Irrevocable Trust A trust protector may be able to amend administrative provisions, change governing rules, resolve ambiguities, and remove and replace trustees This role is designed specifically to address unforeseen circumstances without court involvement
When to Fire a Trustee Trustees must adhere to the trust’s terms to the greatest extent possible Because these tasks carry a fiduciary duty, the trustee is legally obligated to act in the best interest of the beneficiaries
Can Trustees Deliberately Keep Assets from Beneficiaries? Ask for an accounting If the trustee won’t provide it, seek a court order that forces them to share all information regarding the assets in the trust, including records of financial transactions and tax filings You can hire an attorney to guide you through the process What is an Accounting? An accounting is a detailed report of all income, expenses, and distributions from a trust The
5 Rights That a Trust Beneficiary Has - ElderLawAnswers As a trust beneficiary, you may feel you're at the mercy of the trustee However, depending on the type of trust, beneficiaries may have rights to ensure the trust is properly managed Trustee vs Beneficiary A trust is a type of legal arrangement in which one person, called a settlor or grantor, gives assets to another person, known as a trustee (Note that a trustee can be a person or an
10 Dos and 1 Dont for the Trustee of a Trust - ElderLawAnswers Certified public accountants (CPAs) can assist trustees with the financial reporting and tax obligations of the trust They can prepare tax returns, advise on tax strategies, and ensure that the trust maintains proper financial records An accountant’s expertise can help the trustee avoid costly mistakes and ensure compliance with tax laws
Estate Planning: What Is a Revocable Trust? - ElderLawAnswers What powers should the trustees have? Work With an Estate Planning Attorney You'll have to decide on these and other issues when setting up a trust More complex trusts designed for tax and asset protection purposes present even more choices To draft a revocable trust, be sure to consult with a qualified estate planning attorney