When you create a trust, you will choose a trustee to handle things once you are gone. The trustee must be a trustworthy person who is responsible and able to handle the duties of the position.
SmartAsset explains a trustee can be a person, business or other entity. It can be a professional or someone with whom you have a personal relationship. In any situation, the duties remain the same.
Specific to trust
Trustee duties depend largely on the trust itself. The design of the trust will often dictate what the trustee must do. The trust should include guidelines for the trustee to follow that explain his or her duties.
Trustees may need to handle taxes on the assets within the trust. He or she may have to track down the beneficiaries or send them notices. Trusts that have gradually distribution of the assets may require a trustee to maintain the assets and handle each distribution period.
The trustee is financially responsible for the trust and safeguarding the assets within it. He or she must protect the assets and defend against any challenges to the trust. In some cases, he or she may have to sell assets or invest them.
Other duties may include managing bank accounts, handling insurance, collecting rent, keeping records and delegating tasks. The most important aspect of the trustee’s duties is protecting the trust assets and ensuring your wishes go as planned.
The duty of a trustee is something that may require special knowledge or outside assistance. When setting up a trust, you should set your trustee up with everything he or she will need to do the job properly.