The role of trustee often comes with a heavy burden of responsibility. While this might feel like a lot to take on, it doesn’t have to be. If you employ the help of Davidson Law Group, you will find the process much easier. A lot of people forget, or perhaps never realize, that they don’t have to navigate this new role on their own.
Many people have done it before them, and others of us, like the probate attorneys at Davidson Law Group, advise trustees for a living. Though these circumstances may be trying, our education, compassion, and experience give us the confidence to help you navigate them.
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What Does a Trustee Do?
In the simplest terms, a trustee manages someone else’s property and monetary holdings for another person, known as a beneficiary.
In most cases, trustees are chosen to oversee the estate of a beneficiary because that acting trustee inspires trust, shows good character, and makes sound decisions. They must take the utmost care with the money and property entrusted to them, and they will be held accountable for any mishaps that happen under their watch.
Using the Trust as a Guide
As an acting trustee, the trust acts as your guidebook. It will tell you how to distribute the trust’s current income and the trust’s investment principal.
You will also follow its guidance in terms of reporting to beneficiaries of the trust. Not all trusts read completely straightforward, but Davidson Law Group can advise you on how to interpret the language correctly. We help you to parse the technical details of this important document to ensure you are acting in your beneficiary’s and your own best interests.
A trust doesn’t simply act as a giant pile of stagnant money. If it did, it would soon run out and benefit no one. The trust tasks you with the challenge of making sound investments. You must avoid speculative, risky investing strategies.
You will also have multiple beneficiaries to consider. What suits a current beneficiary will not always benefit future beneficiaries, so you need to find a way to balance these competing interests.
Some trusts give you more leeway in this situation than others. If you have discretionary power, you will want to evaluate the current needs, future needs, outside income, and the economic situation of your beneficiaries before altering the distribution of the trust in any way. A trustee must learn how to say no to beneficiaries.
Having an ally in Davidson Law Group will help you stay confident in your decision. Our experience not only helps you reach a sound decision but also gives your decision more credibility in the eyes of most beneficiaries.
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Accounting & Taxes
No one likes to think about the nitty-gritty of the trustee role, but these elements of your job are just as necessary as all the rest. You should keep a separate account of the principal and income, and report these both to beneficiaries on an annual basis.
Whether or not you need to pay taxes depends on the type of trust you manage. This might seem like an additional complication, but don’t worry. Davidson Law Group will help you figure out whether you need to do this or not. We won’t let you get unexpectedly slammed with an IRS audit.
Contact Davidson Law Group for Trustee Advising & Management
Acting as trustee is no easy task, but you don’t have to do it alone. The wills and trusts attorneys at Davidson Law Group can both advise you and manage a trust on your behalf. If you feel you would benefit from our expertise, contact a wills and trusts attorney in Fort Worth, Allen, or Tyler.