When you create a trust, an important part of that process is selecting who will serve as the trustee of the assets placed inside. If you’re not familiar with the importance of this role and what it means to be a trustee, this blog will help.
A trustee is an important component of the estate planning strategy of creating a trust. There are several different parties involved in the establishment and administration of a trust. One of these is known as the trustee who administers the terms of the trust. The trustee has what is known as a fiduciary duty to the beneficiaries of the trust. This means that they are legally bound to manage the trust property solely in the interests of the beneficiaries and consistent with the law and the trust agreement.
There can be co-trustees as well as co-grantors or co-beneficiaries which can complicate the administration of a trust. A trust becomes fully operational and under the trustee’s discretion after property has been transferred into it. The trustees manage the assets for the benefit of beneficiaries. This means they cannot engage in self-dealing or taking on activities that would benefit them personally rather than the beneficiaries or at the expense of the beneficiaries.
If you have questions about this process and are interested in establishing a trust for yourself, schedule a time to speak to a dedicated estate planning lawyer about the options available to you and how to move forward lawfully understanding the type of trust you’ve selected.