If you were to ask the average person what elements are necessary to create a trust, many wouldn’t know how to answer. The purposes of a trust can be several, but the means in which a trust is created are few. Here’s a few things to understand about the elements of a trust. Knowing them can help you to spot if negligence is occurring.
In order to create a trust, the property owner, usually called the ‘trustor’, transfers legal ownership to a person or institution, called the ‘trustee’, to manage that property for the benefit of another person, who is known as the beneficiary. The trustee often receives compensation for his or her management role. The creation of a trust thereby creates a fiduciary relationship. This relationship connects and runs between the trustee to the beneficiary.
Thereby, the trustee must act solely in the best interests of the beneficiary when dealing with issues that impact the trust. Failure to do so could mean that the trustee was acting negligently in managing the trust on behalf of both the beneficiary and the trustor. Misappropriation of the trust could be an accident, or it could be intentional. Either way, it may be appropriate to see justice for the trustee or to seek damages.
Negligence by a trustee, executor or conservator isn’t easy to stomach. Oftentimes, the person is a loved one or a close friend who those involved in or connected to the trust, have a deep trust for. However, it’s not been unheard of for a person to take advantage of the trust of others for their own gain. Find out if negligence is affecting your loved one’s trust.