What does a trustee do?

What does a trustee do?

On Behalf of | Nov 11, 2022 | Probate And Estate Administration |

A trustee is a person you put in charge of managing a trust you create. This person takes immediate control over the assets in the trust, and he or she has a lot of power to dictate what happens with them.

You will outline the duties of the trustee when you create the trust. But there are certain responsibilities that you will want to include.

Basic duties

The trustee needs to have the power to control the assets within the trust, So, you should ensure you provide him or her with the ability to contact the beneficiary and distribute the assets. The person needs to be able to also manage the assets if there is not going to be a quick disbursement. For example, if the trust assets will not go to the heir until they turn a specific age, then in the meantime, the trustee must have the ability to handle the asset. He or she may have to pay taxes or make investments. You need to ensure he or she can do whatever it takes to maintain the trust until it is time for the beneficiary to take over.

Other duties

Depending on the assets in the trust, your trustee may need to maintain records and handle bookkeeping. You need to ensure you provide the person with the ability to do those things. In addition, you want to make sure the trustee will follow directions properly and carry out your wishes. The trustee may also have to defend the trust in court if an heir or someone else has objections or challenges.

You set up the trustee for success or failure when creating the document. Make sure that you design his or her power in a way to allow the trust to disburse the way you desire.