Have you been chosen to serve as the trustee of the family trusts? Do you have disabled siblings who have aspecial needs trust and now you are the trustee? Experienced Palm Beach probate law firms are here to help you understand what exactly you will have to do as a trustee. Here are just a few of your duties that you can look forward to.
Duty to Earmark the Trust Property
- You have an affirmative duty to “earmark” your own property and separate it from trust property.
- Failure to do so is called co-mingling.
- Good record keeping is key as a trustee you will occasionally have to prepare an accounting.
- Also good records are just a good thing to have.
- These will also come in handy in April for tax time.
Duty to Not Self-Deal
- You also have a duty to not self-deal.
- What does that mean?
- Lets say there is a house in the trust worth 1 million dollars and you know someone who wants to buy it for double that or 2 million dollars.
- If you buy the house from the trust even if you do it for 1.9 million dollars then you are self-dealing.
- You cannot take a benefit that belongs to the trust.
- Watch out because failure to follow this rule will likely result in a lawsuit for breach of fiduciary duty or breach of trust / self-dealing.
Duty to Administer the Trust Prudently
- You also have to actually do something with the trust funds.
- This called the duty to administer the trust.
- You have a duty to do so in a prudent manner.
- That means how a reasonable person in your shoes would do it.
- Do you know how the Court evaluates whether or not you are acting prudently?
West Palm Beach Trustee Issues
- There are a number of issues that may surface during your tenure as a West Palm Beach trustee.
- There is good news though, you can rely on advice of experts.
- For example if you are unsure about whether or not an investment is a good fit for your trust you can ask an experienced Palm Beach accountant or investment adviser.
- Furthermore if you do not know if something is proper or ethical speak to a West Palm Beach probate firm with experience in helping trustees do the right thing.