the

What are My Duties as a Trustee of a Trust?

what are the duties of a trustee named

any trust the most common scenario we

see is whenever someone comes in and

they set up a trust during their

lifetime which is called living trust

repair or a revocable trust where they

name themselves and then they provide

who their assets are going to be

distributed to under the provisions of

the trust and name a successor trustee

during the person's lifetime they can

pretty well treat the trust assets any

way they want to since it's for their

benefit upon their death the revocable

trust becomes irrevocable and the

successor trustee then assumes the

responsibilities and they are to send a

copy of the trust to all the

beneficiaries whether they be income

beneficiaries whether they like the

beneficiaries or not but there to send a

copy the trust to everyone there also

just to file a notice of trust and the

public records after having sent out the

trust and recording the notice of trust

with the probate court then they go

about providing obtaining an inventory

of all the assets that are in the trust

once that's accomplished we they need to

obtain a federal identification number

so that an accounting or a tax return

can be filed by them so that they don't

have to pay any taxes now the during the

lifetime of someone who sets up a trust

for their own benefit they're not

required to get a federal identification

number and can use their social security

number however upon their death the

successor trustee has to have a federal

identification number in order to follow

the fiduciary tax return

and that would govern how the people are

to pay taxes on the money that they

receive or the income that they receive

from the trust and that would be

something that you would want to the

successor trustee would want to consult

with the attorney about as far as the

administration of the trust and the

distribution of the assets in particular

there's homestead property involved if

there's property in the name of the

decedent and we need to go through a

probate proceeding in order to obtain

those assets to be titled in the trust

and then we the trustee must be very

careful in reviewing the provisions of

the trust to see what they're directed

to do if it says simply distribute out

at my death as soon as possible to the

named beneficiaries well you need to

make sure that the creditors are paid

and then have an accounting of everyone

as far as the inventory to make

distribution and then file a fiduciary

tax return with the Internal Revenue

Service so that the income can be

accounted for and you can be compensated

this trustee in order to be able to to

fulfill your duties as a trustee if this

is a continuing trust meaning that you

must pay the income to a beneficiary for

after for extended period of time then

you need to be consult with an attorney

concerning your investment

responsibilities and financial

responsibilities and that your

government under the prudent investor

Act now there's a whole trust code a

bunch of rules and laws as to what

you're obligated to do and would urge

you to consult with an attorney about a

trust administration if you have any

questions give me a call at seven to

seven eight four seven to two eight

eight thank you