When a client retains our office to draft a Trust, a Trustee must be chosen. But the client may want to know before choosing a person, what will a trustee be responsible for. The person appointed as trustee may wonder the same.
First, it is important to know what a trust is. A trust is an estate planning tool that protects assets from creditors, is private, and can avoid probate. A revocable living trust transfers your assets while you are still alive. The trust owns the assets, but you can use them while you are alive. When you pass away, since the assets are in the trust, the Probate Court does not get involved.
There are different types of trust:
It is also important to know the parties that are involved in a trust:
So now that you are familiar with different types of trusts and the parties who are involved in the trust, now what are the responsibilities that a trustee has. A trustee does not become involved until the grantor no longer has capacity or dies. At that time, the trustee must:
With the help of an experienced estate planning attorney you will be a successful trustee.