Dirty Secrets About Annuities

Accounting & Financial Concierge Services, Articles, Financial, Trustee Assistance

When you visit your financial advisor, you trust their competency and ability to maintain and grow your hard-earned money. You rely on these investments to provide for your retirement, and every dollar counts when planning to live on a fixed income. But what if your financial advisor does not disclose that they collect a higher fee based on an annuity account you may not benefit most from? How do you know if annuities are a right fit for your portfolio? Here are the dirty secrets about annuities.

3 Things You Should Know About Being A Trustee

Fiduciary Services, Financial, Settling an Estate, Sucessor Fiduciary Appointment Planning, Trustee Assistance

3 Things You Should Know About Being A Trustee     If you’ve been designated as the Trustee in an estate plan, you might be wondering what comes next. And if you’re not, you should be. Because being a Trustee is serious business. In very basic terms, you have been appointed to administer a trust…

Private Professional Fiduciaries as Revocable Living Trust Successor Trustees

Fiduciary Services, Trustee Assistance

Santa Barbara, CA (Santa Barbara Lawyer Magazine) December 2018 — Private Professional Fiduciaries as Revocable Living Trust Successor Trustees Frequently estate plan lawyers engage in discussions with clients about who to appoint as successor trustees for revocable living trusts.  Just as frequently, those clients often want to designate their children, siblings or other family members to take…

Basics of Trust Administration

Articles, Fiduciary Services, Trustee Assistance

To get a better grasp of the trust administration process, it is important to have at least a basic understanding of what a trust is and how it can function in the estate planning process. A trust is a legal mechanism frequently used in estate planning, not only to manage property assets during a person’s lifetime, but also to distribute assets after death. A trust can distribute estate assets to several different people or entities and also set conditions as to when and how much each beneficiary will receive.

Trust Administration

Articles, Trustee Assistance

A trust can be a valuable tool in your estate planning in the right circumstances, and is critical to carrying out your wishes when you pass away. Trusts can give you the ability to immediately transfer assets and provide for beneficiaries without the need for probate. A trust sets up a legal relationship in which property or assets of the grantor are held by the trustee for the benefit of the beneficiary.

Conflicts of Interest and the Duty to Use Skills

Articles, Trustee Assistance

It is essential that a trustee exercise an extreme amount of caution when dealing with the trust and its assets. The personal duties of a trustee start with the most important: never, ever, under any circumstances commingle estate funds with the trustee’s personal funds. This is an essential component of the duty to avoid a conflict of interest. A trustee must be aware of and avoid any situation that creates a conflict of interest with the terms of the trust and the duties of the trustee.

Trustee’s Duty to Deal Impartially with Beneficiaries

Articles, Trustee Assistance

The duty of loyalty includes the duty to deal impartially with all beneficiaries. This can be especially challenging if there are many beneficiaries each with different wants and needs. It is further complicated when the trustee is also a beneficiary. Above all, the terms of the trust dictate how the trustee must proceed with regard to the beneficiaries. When the trust documents are not explicit the trustee must use their best judgment to perform his job.

The Trustee’s Duty of Loyalty to Beneficiaries

Articles, Trustee Assistance

The beneficiaries of the trust are those who enjoy the benefit of a trust’s assets. Beneficiaries may include the spouse, children, associates or other family members of the creator of the trust. Non-profit organizations, religious institutions and other charitable entities as well as businesses may also be beneficiaries. The Trustee has certain duties to all the beneficiaries of the trust, which may become more complicated when there are different classes of beneficiaries or when the trustee is also a beneficiary. One very important duty is the duty of loyalty to the trust’s beneficiaries.