Trust Matters: What Are the Responsibilities of a Trustee?

Did you know trusts are at an all-time high every year? In 2023, there will be a 3.1% growth in the Trusts & Estates market size.

Trustees perform several duties related to finances, law, and estate planning. They act as a go-between for the trust or will and heirs or beneficiaries.

If you’re thinking about having one made for yourself, you need to be sure you clearly understand all the responsibility that comes with it.

Read on to learn about what are the responsibilities of a trustee.

Must Work to Protect the Assets

Trustees play a vital role in protecting the assets of the trust from any outside harm or claim. Take on the responsibility of ensuring that all relevant paperwork and legal obligations are in order. This includes filing all necessary paperwork, transferring titles, and filing any tax returns that you need to file.

Do not undertake any action that could jeopardize the assets of the trust or result in a claim being made against it. Also, be aware of any laws that may affect the trust and be sure it is under the said laws. Trustee services are essential to ensure that the trust remains safe and secure.

Keep Accurate Records of Transactions

Trustee duties must keep accurate records of all transactions and any changes in ownership or distribution made to the trust’s assets. This requires you to maintain detailed records of all investments, including account numbers, documentation, stock certificates, and other related documents.

Keep regular reports of asset transfers and distributions accurately. You must organize these records and maintain them in easily accessible files.

If the trustor revises setting up a trust, document all relevant changes in an accurate and timely manner. This includes any modifications to the trust deed, documentation of any assets that have been added or removed, and documentation of all beneficiaries.

Remain Impartial and Honest

The responsibility of a trustee is to exercise the utmost care and execute the trust responsibilities over the trust’s assets in good faith, with loyalty and trustworthiness. You are subject to fiduciary obligations and must act in the best interests of the beneficiaries, put their needs first, and overcome any personal interests or biases that might be in opposition.

Remain impartial and honest in all decision-making. Disclose all facts related to the trust and decide in a manner in the best interests of the trust beneficiaries, free of any improper influences. Also, do not use the trust for your gain or benefit, nor act out of your interests.

As a role of a trustee, you must remain honest, unbiased, and independent in your judgment when performing your duties as required by law.

Use These Responsibilities of a Trustee Guide

Trustees have a significant responsibility to act in the best interest of the beneficiary. So, what does a trustee do? They must work to protect the assets, keep accurate records of transactions, and remain impartial and honest.

To learn more about the responsibilities of a trustee, talk to a financial advisor today to ensure your trust is in good hands.

Check out the rest of our blog to learn more.

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