Living trust- Duties of a trustee

In a living will, you can appoint a health care proxy to decide for your behalf. On the other hand in a living trust, a trustee is the one that manages the properties of the trustor. And they are the ones that execute the legal duties as prescribed by the law. Every trustee does a fiduciary duty to all beneficiaries regardless of the relationship the trustee has to both the trustor and the beneficiaries. Fiduciary duty “is a legal or ethical relationship of confidence or trust regarding the management of money or property between two or more parties” (Wikipedia.com). If by any means, the trustees fail to do his or her duties, he or she will be accountable for the trust that may be lost. The trustee is also accountable for the damages in any of the property that is entrusted to his or her care. And she will pay for all the damages that he or she has caused.

                The trustee must keep a detailed record of all the trust that is entrusted to his or her care. Like all the bank accounts, stocks and etc. And it is the trustee’s duty to protect and invest all the estate of the trustor. If there is any tax payments that are needed to paid, the trustee can use money from the assets of the trust.

                A trustee, even if he or she is biologically related to the trustor is not excused from the lawful responsibilities. Meaning, if there is a fault done while he or she is managing the properties, that person is not free from the punishment of the law. The trustee must not show any favouritism to one or any of the beneficiaries. It is one of his or her duty to distribute the trust according to the trustors will and must do them without looking at the interest of any of the beneficiary. In cases where the owner had a divorce with his or her spouse the trustee must know about it and the trustee must know whether they are legally or they have an uncontested type of divorce. This is important because an uncontested type of divorce doesn’t require an attorney for the agreement. Only both parties agree to divorce on themselves. There is a Divorce online application that is out in the wed that caters to this type of this divorce. because legal documents are essentially important when taking this matters to the court.

                It is also the trustee’s duty to keep the beneficiaries informed. They must have a copy of information that concerns the administration of the trust.

                A trustee must also act in accordance to the duties of the trustees and what he or she is allowed or not permitted to do. There are property owners that allow trustees to sell their properties and it is also for the benefit of the beneficiaries. Like for instance, the trustor has three children and has one car. Since he could not divide one car for the three of them, he can have the option to sell the car and divide the sales to his children.

                In a living trust, the trustee has the greatest responsibility and it is important that he or she is well versed in all his or her duties and responsibilities as a trustee.