What Does a Living Trustee Do?

What Does a Living Trustee Do?

Aliving trusteeis a person or entity that manages and administers a trust while the grantor is still alive. As the grantor, you can appoint a living trustee to help ensure that your assets are managed according to your wishes and that your beneficiaries receive the benefits of your trust. In this article, we'll discuss what a living trustee does and why it's important to choose the right person or entity for this role.

What are the duties of a living trustee?

The duties of a living trustee vary depending on the terms of the trust agreement and the type of trust. However, some common duties of a living trustee include:

1. Managing the assets of the trust: A living trustee is responsible for managing the assets of the trust, including investing and reinvesting the assets as necessary.

2. Keeping accurate records: A living trustee must keep accurate records of all transactions related to the trust, including income and expenses.

3. Distributing income and principal: A living trustee is responsible for distributing income and principal to the beneficiaries of the trust according to the terms of the trust agreement.

4. Filing tax returns: A living trustee must file all necessary tax returns for the trust and ensure that all taxes are paid on time.

5. Communicating with beneficiaries: A living trustee should communicate regularly with the beneficiaries of the trust to keep them informed about the trust's activities and to address any concerns they may have.

Why is it important to choose the right living trustee?

Choosing the right living trustee is crucial to the success of your trust. Your living trustee will have a significant amount of control over your assets and the well-being of your beneficiaries. Here are some qualities to look for when choosing a living trustee:

1. Trustworthiness: Your living trustee should be someone you trust implicitly to manage your assets and make decisions in the best interests of your beneficiaries.

2. Financial expertise: Your living trustee should have a solid understanding of finance and investment strategies to ensure that your assets are managed effectively.

3. Communication skills: Your living trustee should be able to communicate with both you and your beneficiaries in a clear and effective manner.

4. Availability: Your living trustee should be available to manage the trust and make decisions when necessary.

5. Experience: Your living trustee should have experience managing trusts and administering estates.

In conclusion, a living trustee plays a vital role in managing your assets and ensuring that your beneficiaries are taken care of. By choosing the right living trustee, you can help ensure that your wishes are carried out and that your assets are managed effectively. When selecting a living trustee, it's important to consider their trustworthiness,financial expertise,communication skills, availability, and experience.