Being a trustee can be an amazing responsibility. Whether you are a trustee for a living trust or a successor trust, you have to be ready to take on the duties and the responsibilities of administering this trust. Understanding these duties is essential, which is why you may want to retain your own attorney to make sure that you know what to expect and that your own interests and rights are protected. The Law Offices of Diane Cohen, PA is the law firm that you want to consult with.
A successor trust is administered upon the death or incapacitation of the person who set up the trust. If the person is still alive and able to take care of their affairs, you can rest easy, as you do not have any duties until they pass away or become unable to care for their financial affairs. While you may still want to discuss the situation with an attorney, you do not have to be as stressed as you would be if the trust were ready to be administered due to the incapacitation or death of the owner of the trust.
A Living Trust
This type of trust is one that the trustmaker has transferred their assets into. The owner is changed from just the trustmaker to the trust name. This ensures that if a person becomes incapacitated or dies, the trustee can step in and manage the financial affairs of your personal and your business life.
Trustee Duties And Responsibilities
Either way, a trustee has certain things that they are responsible for. The most important things that you need to understand is that you have to follow the instructions that are given in the trust and that you cannot use the assets for your own benefit (unless it is authorized in the trust). Additionally, you want to be sure that you do not mix assets with your own and that you keep careful records and file the proper tax returns. If you invest assets, it must be done in a conservative way that will grow in a reasonable amount with a low risk. All of these responsibilities will ensure that you are caring for the trust in an honest and up front way.
Being named as a trustee can be a little scary, but with a little legal help and counsel, you will be able to fulfill your duties to the desires of the trustmaker. Diane Cohen, PA can be that counsel to be sure that you understand what you are supposed to do as far as the administration of the trust. If you have been named as a trustee, contact The Law Offices of Diane Cohen, PA today.