One of the main responsibilities of a trustee is the fiduciary duty owed by them. This means that he or she must put the trust's interests above all other interests. Not only should the trustee preserve the trust's property and assets, but he or she should also defend the beneficiaries against legitimacy challenges. Additionally, the trustee should separate his or her own personal property from the trust's property and handle all issues with attention to detail.
However, acting as a fiduciary does not end there. Newport Beach residents may not be aware that trustees may also have discretion with regards to decisions about distributions. Taxes must also be filed and tax obligations met. Trustees must also keep records of all that is happening with their responsibilities and duties.
A trust is an important estate planning tool that is used to control how one's estate can be left to one's heirs. Whether one is creating a trust to protect the beneficiaries' interests or to avoid probate, there is no doubt it offers many benefits to the grantor and beneficiaries. It can even seem like a big honor to be selected to become a trustee for a loved one, as it signifies a level of trust and responsibility. However, it is important to understand the legal responsibilities and duties that come with acting as a trustee.
When these responsibilities are not fulfilled, it might be possible that trust and probate litigation ensues, which is why it is important to understand what the role entails. Additionally, there are different types of trusts that can be created according to one's situation and needs. Some allow the grantor to be the trustee as well, while others require appointing someone else as one. Discussing one's options with an experienced attorney may prove helpful to those who are trying to protect their beneficiary's interests for the future.