Trusts are among the most powerful tools in the estate planner’s toolbox. When properly designed, they can accomplish a wide range of goals. However, trusts do not go into effect by “magic.” When the time comes, they must be properly administered to ensure that the trustmaker’s wishes are carried out and protect the person designated as trustee from making mistakes that can be financially catastrophic to beneficiaries — and even the trustee him or herself.
The trust administration process can be extremely complex and involves a wide range of duties and responsibilities. These include statutory notice requirements, distributions to beneficiaries in the manner dictated by the trust, prompt payment of expenses, compliance with the Prudent Investor Rule, income and estate tax consequences and elections, and accounting to the beneficiaries and/or the court.
Given that failure to properly administer a trust can have serious financial and legal consequences for the trustee, the decision to serve as trustee should not be taken lightly. At the Pasadena Law Group, we can explain the risks of serving as trustee in clear, easy-to-understand language. If you decide not to accept the role of trustee, we can help you select the appropriate person or persons. We will work closely with executors, personal representatives and other fiduciaries to ensure the directives of the trust are carried out in the appropriate manner.
Contact us – Pasadena Legal Counsel For Trustees today to learn more about how we can help you with all aspects of the trust administration process.