A trustee is an individual appointed to oversee finances or assets designated for another party. Trustees cannot spend the money in their custody unless it is in favor of the intended beneficiary. The specific responsibilities of the trustee are outlined in the trust agreement.
A will should have a trustee to safeguard the lives and the future of the young beneficiaries. Trustees are expected to do everything to ensure the beneficiary is living their lives as expected. In this article, we’ll look at the roles of a trustee in a will.
1. Holding Property for Children
If parents die and leave behind young children, the trustee will be responsible for holding assets for them. A trusted family member who can stand out as the children’s guardian can be appointed as a trustee. In cases where no one takes up this role, you can hire a professional trustee (fiduciary).
2. Distributing Assets to Beneficiaries
It is the role of the trustee to distribute trust assets as outlined in the trust documents. The will writer can direct beneficiaries to receive their inheritance after a specified period. Many get access to the property after graduating from college or getting married.
3. Keeping Records of All Trusts Expenses
It is very important to appoint a trustee who fully understands their role. It is allowed to have two trustees in a single will. You can appoint a family member to take care of your children in case of your demise. The second trustee must possess professional expertise to fulfill all legal obligations. They must submit tax returns and maintain comprehensive records of all expenses related to the trust.
Depending on their role or trust type, they may need to update beneficiaries on property matters. In the case of a silent trust, the trustee is not expected to discuss the trust property with the beneficiary. Some parents or trust owners request the trustee to keep their agreement discrete. Hence, the beneficiary might not be aware of their appointment as legal beneficiaries.
Finding a trustworthy and reliable trustee is not an easy task. Sometimes, the people we trust turn out to be a nightmare. Hence, it is always advisable to hire a fiduciary to safeguard the future of your beneficiaries. For more info on crafting a will, contact Beckstrom & Beckstrom, LLP, to schedule an appointment.