The basic duties of a Trustee involve the collection, management, investment, and distribution of trust assets. It is also important to keep detailed records as well as prepare an accounting, an inventory, and possibly obtain appraisals.
The principal source of Trustee powers and duties is the trust agreement itself, so it is important for the Trustee to be familiar with the terms of the trust. Another important set of duties relates to tax matters. Often times it is necessary to prepare a federal estate tax return (706), an income tax return (1041), and possibly a fiduciary tax return. Our firm will be able to assist with all of the tax matters for the estate. We recommend all Trustees meet with one of our notably experienced Attorneys to determine if a tax return is necessary.
If someone exceeds their Trustee powers, they may be held liable for loss or damages to the trust Estate.
A Trustee can carry out all Trustee duties; however, it is recommended that they hire attorneys, accountants, investment advisors, and others to consult with concerning the administration of the trust. Such advisors are usually paid through the assets of the trust, so there is normally no out of pocket costs to the Trustee.
Our law firm will work with the Trustee and beneficiaries to have the trust administered in a timely and professional manner. We can offer peace of mind to the Trustee by making sure the terms of the trust agreement have been satisfied.
If you have been appointed as a Successor Trustee or are currently acting as a Trustee, contact Stewart and Bruss, P.C. today so that we can assist you in fulfilling your fiduciary duties.