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What is a Trustee?

There are many people involved in a trust; the grantor who creates the trust, the beneficiaries who receive benefits from the trust, as well as the trustee who administers the trust.

While the obvious relationship involved in a trust is between the grantor and beneficiaries, the middleman between the two is the trustee. A trustee is appointed by the grantor to take on the responsibility of managing the trust. The trustee has a fiduciary duty to act in the best interest of the beneficiaries who benefit from the trust. The trustee is responsible for prudently investing trust assets, distributing assets to the beneficiaries and ensuring the trust stays in compliance with all applicable laws and regulations. If this feels like a lot to manage, you are not alone. Many trustees hire advisors to assist them with various components of trust administration.

A financial advisor typically gives the trustee advice on the best investments so that the trustee is complying with their duty to prudently invest.

A trust administration attorney typically gives the trustee advice regarding legal matters that affect the administration of the trust.

A CPA typically gives the trustee advice regarding the tax considerations the trustee must consider when administering the trust.

The right selection for a trustee is crucial to your trust. When considering who to appoint as a trustee, think about the level of trust you have in the person, as well as how much confidence you have that they are up to the task. If you plan to hire an entity or professional trustee, choose one with a good reputation and established experience in managing trusts. Another consideration with this route is what fees they charge and the level of service they offer.

If you need guidance in appointing a trustee, look no further than the estate planning lawyers at Brown Law Firm. They will work to understand your goals for your trust, as well as your wishes for your legacy, to assist you in selecting a trustee. Call (303) 339-3750 to schedule a consultation.