The most important thing to remember when you step in as trustee is that these are not your assets. You are safeguarding them for others: for the grantor (if living) and for the beneficiaries, who will receive them after the grantor dies. As a trustee, you have certain responsibilities. For example:
-You must follow the instructions in the trust document.
-You cannot mix trust assets with your own. You must keep separate checking accounts and investments.
-You cannot use trust assets for your own benefit (unless the trust authorizes it).
-You must treat trust beneficiaries the same; you cannot favor one over another (unless the trust says you can).
-Trust assets must be invested in a prudent (conservative) manner, in a way that will result in reasonable growth with minimum risk.
-You are responsible for keeping accurate records, filing tax returns and reporting to the beneficiaries as the trust requires.
But you can have professionals help you, especially with the accounting and investing. You will also probably need to consult with an attorney from time to time. However, as trustee, you are ultimately responsible to the beneficiaries for prudent management of the trust assets.
Please contact us if you need assistance in serving in the role of a trustee or if you have any related question.
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