It is important to understand what a trustee is and what his or her role is if you are considering setting up a trust or are a beneficiary of one. A trustee is a person or organization that is appointed to manage assets or property on behalf of another person or organization. The trustee is responsible for administering the assets according to the terms of a trust agreement.
The role of a trustee can vary depending on the type of trust and the specific responsibilities outlined in the trust agreement. Some common duties of a trustee include investing and managing trust assets, distributing income or principal to beneficiaries, filing tax returns, and keeping accurate records of all trust transactions.
Additionally, trustees are often appointed in situations where beneficiaries are unable or unwilling to manage their own assets–such as minors, individuals with disabilities, or beneficiaries who may be going through a difficult time. Trustees can be individuals (such as family members or trusted friends) or professional organizations (such as banks or trust companies).
California trustees are responsible for the following duties:
The Duty to Inform and Account
It is the trustee’s responsibility to keep beneficiaries informed about the trust property and how it is managed. A formal accounting must also be provided to the beneficiaries at least once a year. The accounting should include all income and expenses related to the trust assets.
Duty to Follow the Terms of the Trust Agreement
The trustee must follow the terms of the trust agreement when managing trust property. This includes carrying out any specific instructions that are laid out in the agreement. For example, if the trust agreement says that certain assets must be sold by a certain date, then it is the trustee’s responsibility to make sure that this happens.
The Duty of Loyalty
Trustees must act in the trust and beneficiaries’ best interest at all times. Trustees cannot use trust assets for their own benefit. For example, trust funds cannot be invested in a way that results in a personal profit for the trustee.
The Duty of Care
Trust property must be managed with care by the trustee. Trust funds should be invested in a way that preserves capital and grows income. It is also important for the trustee to insure valuable assets in order to protect trust property from loss.
How Beneficiaries Can Navigate Trustee Obligations in California and Seek Legal Action
California trustees are required to perform several important duties. It is crucial that you choose someone who you can trust to fulfill the trust’s duties if you are considering setting up one. A knowledgeable estate planning attorney can help you select an appropriate trustee and draft a comprehensive trust agreement. If you are a beneficiary of a trust and you believe that your trustee is violating their duties, you may have legal recourse.
Overall, an attorney can play a crucial role in appointing the right trustee for a trust by providing legal guidance, identifying potential trustees, evaluating candidates, and drafting appointment documents.
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We know discussing end-of-life plans can be difficult, but we approach this delicate conversation with respect and dignity. Our estate planning services cover all areas of elder law & probate based on your specific financial & health situation. If you have additional questions or concerns regarding your estate plan, probate, special needs planning, or advanced tax planning, attorney Dennis M. Sandoval and the Sandoval Legacy Group team is ready to assist you.
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If you have additional questions or concerns regarding your estate plan, elder or tax law, or probate, contact the experienced and trusted team at Sandoval Legacy Group, A division of Holstrom Block & Parke, A Professional Law Corporation, by calling (888) 513-9876 to schedule an appointment. No other law firm in Southern California has the knowledge and experience relating to estate planning, special needs planning, elder care, probate, conservatorships, business succession planning, tax planning, and trust administration as our lawyers and paralegal staff.
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