Last newsletter I covered the duty of a trustee to comply with the terms of the trust instruments. This time I will address the duty to control the trust property as well as make the property productive. This means that the trustee has a legal obligation to ensure that the trust not only maintains value but also increases in value as appropriate within the terms set out by the trust instruments.
Estate planning does not begin and end with drawing up a will or trust. It encompasses the entire process of communicating to your loved ones how you would like to leave your affairs. Unfortunately, it is all too common for a family to become bitterly divided after a death. Survivors file lawsuits and engage in nasty behavior rather than celebrate the life of the deceased. Proper communication during the estate planning process can help avoid these problems. However, because this can be an emotional time people are often reluctant to have these conversations.
When working with elderly clients who are trying to get their affairs in order, performing an inventory of their financial and personal assets is an excellent place to start. Not only does it decrease the burden on their loved ones, but it helps elders feel in control of their affairs. There is an added bonus that in an emergency this helps establish and expedite insurance claims.
Trustees have a variety of critical duties. Failure to fully carry out these duties can result in legal liability for the trustee. Trustee duties fall into three general categories: to the trust itself, to the beneficiaries, and personal duties. Today I’ll address some of the duties a Trustee has towards the Trust itself.
Most people have two major goals in estate planning. The first is ensuring that their wishes are honored, both during their lifetime, and after. The second is reducing administrative costs. Choosing the wrong fiduciary can mean that these goals are not met. Your appointment for power of attorney and trustee means selecting the person who will control, manage and distribute assets when you are incapacitated or deceased, which makes it crucial to carefully think out this appointment. By the end of this article you will understand the importance of making the right appointment and how to go about doing so.
Lindsay Leonard said taking care of her grandmother before she passed away was like getting “a crash course in eldercare.” The aftermath was equally revealing. As it turned out, it was a useful education that prepared her well for the business she recently launched — Santa Barbara Estate Services.
Estate trustees and executors frequently find that administering an estate after the passing of a loved one is overwhelming and requires enormous time and effort. Santa Barbara Estate Services has just launched a service to help these trustees in settling an estate.
