(612) 206-3701 info@lucerelegal.com

I’ve Been Named the Trustee of a Trust…What Did I Agree To?

Lucere Legal helps trustees administer the trust correctly

Many people who are asked by a family member of close friend to serve as the trustee of a trust are honored to be chosen and readily agree to take on the responsibility. If that describes your situation, it’s very likely you have no idea what you have just agreed to take on.

Acting as a trustee means that you are responsible for overseeing and directing what happens with the assets of the Trust.

As a Trustee, you have what is known as a fiduciary duty to the beneficiaries of that trust.  You must abide by trust laws in administering the trust, in addition to following the terms of the trust that set out your trustee duties.

A trustee’s duties include, but are not limited to:

  • Administering the trust according to its terms;
  • Communicating with beneficiaries about the various activities of the trust;
  • Investing and managing trust assets in a prudent manner;
  • Maintaining the trust accounting and paying any taxes or fees;
  • Distributing assets or income to beneficiaries as outlined in the trust; and
  • Reporting the accounting of trust assets, liabilities, receipts and disbursements to beneficiaries.

As a Trustee, you may find yourself involved with the probate process if some of the assets of the estate were not properly transferred into the trust. This process can be overwhelming to handle on your own, especially if you do not have prior experience in this area.

Thankfully, with a good lawyer on board, you do not have to navigate this process alone. Engaging experienced legal help is always the best option for trustees, with the trust being responsible for any fees incurred for legal services.

If you would like some guidance on trust administration or planning for smooth administration of an estate, call our office at (612) 206-3701 or fill out our contact form today to schedule a time for us to sit down and talk.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Contact us to see how we can help you with Duties of a Trustee,Trusts

You may also like . . .

Looking to Avoid Probate? Make Sure That You Fund Your Trust

You wouldn’t let your children get on their bicycles with only half a helmet; their protection is your number one goal. Yet many people make the mistake of leaving significant portions of their inheritable assets unshielded by the the trust they create. Even...

You Don’t Need to Be Rich: 6 Reasons Why a Trust Fund is for Anyone

Most of us, when we hear the words “trust fund”, we roll our eyes—but should we? Hollywood soap operas have for decades portrayed trust funds as a haven for only the children of the wealthiest families. You’ll be happy to know that the reality is far different from...

Are You Ready for Joan Rivers’ $150 Million Secret?

The unexpected death of Joan Rivers on September 4, 2014 was a shock to us all. Legendary comedienne, she spent her long life bringing laughter to millions of Americans with frequently irreverent roasting of her fellow celebrities (actress Elizabeth Taylor, in...

The plain-English guide for Minnesota small business owners

When it comes to business, ignorance isn't bliss; ignorance is risk.

There's a handful of legal topics that business owners should be familiar with, at least on a rudimentary level, to reduce the risk of having something horrible come out of left field.

This book is a legal guide to help you put the most common business legal issues on your radar, with enough information for you to be on the alert for when you may need to get some professional advice.

The intention in arming you with this information is so that you can proceed in business confidently and with fewer legal quagmires.

Do you have a cabin?

The first generation that buys a cabin enjoys it to the fullest and it’s a magical place where happy memories are made and families go for some much needed respite. Unfortunately, without thoughtful planning, the chances of the cabin staying a place of happiness and tranquility into successive generations is very, very slim.

If you haven’t done the planning in advance and made it legally binding, the family members (and their ex-spouses and new spouses) will have to work every detail out for themselves. If they can’t, what is likely to happen is a lawsuit called an action for partition that forces everyone to sell their interest. This lawsuit is expensive, and the costs of litigation will come out of the proceeds of the sale of the cabin, so to add insult to injury to those who wanted to keep the cabin but couldn’t afford to buy the others out, they are footing part of the legal bills in the lawsuit against them. Ouch!

It’s no wonder that family members stop speaking for years after the cabin conflict is “resolved.” You can’t make family relationships perfect, but you can take away much of the fuel for the family conflict fire. That’s what cabin planning does, and it has the nice side effect of giving you peace of mind now.

That’s why Kimberly wrote The Minnesota Cabin Planning Guide and Workbook, and you can get a free electronic copy of her book on our cabin planning website, or you can find it in many county libraries in Minnesota, or you can get it on amazon.com.

Make An Appointment>

Join Our Mailing List

Subscribe to our newsletter list to get information and resources helpful to running your business and planning and managing your personal financial affairs delivered right to your inbox.

We don’t spam and won’t share your information with anyone, at anytime, ever.

Check out our podcast

The Small Business Buzz Podcast

Contact Us

We look forward to hearing from you!

 

Please note that any information submitted in our web form is not subject to attorney client privilege and no attorney-client relationship will be created until a representation agreement has been executed.

7 + 4 =