What are the Duties of a Trustee?
The estate-planning process can seem confusing and stressful. However, we write our blog posts to better explain the misconceptions and difficult topics that people often misinterpret and misunderstand. A trustee is an important term to comprehend when learning about estate planning and probate. The trustee is the individual who is held responsible for informing the trust’s beneficiaries, keeping them updated and managing the assets that are in the trust. The individual is appointed as trustee by the grantor or by the court, and must voluntarily accept the position. He/she is unable to resign as trustee without the permission and consent of the court or of all the beneficiaries. However, according to Florida Statute §736.0706, a trustee may be removed if he/she has failed to perform his/her duties or has committed a serious breach of trust. The responsibilities and duties of a trustee differ depending on whether the grantor is incapacitated or has passed away. Estateplanning.com provides a breakdown of a trustee’s duties listed below.
A Trustee’s Responsibilities and Duties
If the Grantor is Incapacitated
Oversees care of ill person
Understands insurance benefits and limitations
Looks after care of any minors and dependents
Applies for disability benefits
Puts together team of advisors
Notifies bank and others
Transacts necessary business
Keeps accurate records and accounting
If the Grantor has Passed Away
Contacts attorney to review trust and process
Keeps beneficiaries informed
Puts together team of advisors
Inventories assets, determines current values
Makes partial distributions if needed
Collects benefits, keeps records, files tax returns
Pays bills, does final accounting
Distributes assets to beneficiaries as trust directs
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