A trustee is appointed to manage the administration of a trust’s terms. This person also acts as a custodian for the assets held in a trust and is responsible for administering and managing the finances of a trust based on the instructions included in the trust document.
Some of the common responsibilities for a trustee include recording income and expenses, distributing funds to beneficiaries, filing taxes on income that the trust makes and keeping records of any other transactions that occur. In addition to handling these tasks, the trustee also must act within the best interests of the trust. This means someone that you believe has sound financial management ability and can be responsible for handling the trust terms as you have created them.
Furthermore, since the trustee will have a relationship or at least communication with the beneficiaries of the trust, it’s a good idea to choose someone who has excellent communication skills and will be able to handle questions, concerns and potential problems quickly and effectively. A trustee has numerous different responsibilities as part of managing a trust but chief among them is to act in the best interests of the trust and the trust beneficiaries.
This can minimize the possibility of disputes down the line and make things much easier for everyone involved in creating or receiving benefits from the trust. If you would like to learn more about creating your first trust and installing a trustee, contact an experienced estate planning lawyer today.