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Many people believe that the
preparation of a trust eliminates the need for formal administration of a
decedent’s estate. In fact, probate and the administration of a trust have many
similarities, but the key difference is that a trust allows most of the
administrative tasks to be conducted outside of a courtroom.
The basic duties of a trustee involve the collection, management, and investment
of trust assets and the accumulation and distribution of income and principal
pursuant to the trust. A trustee has a fiduciary duty to follow the
instructions of the trust; use ordinary care and diligence when performing his
or her duties as trustee; invest the funds of the trust in a reasonably prudent
manner; avoid commingling the trust funds with the trustee’s own personal funds;
and avoid conflicts of interest between the trustee and the trust
beneficiaries. A trustee can be held personally liable to the beneficiaries for
his or her failure to comply with these duties.
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Ongoing Tasks of Trustee
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Immediate Concerns
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The responsibility of serving as a trustee
can seem overwhelming at times. But
rest assured that trained
professionals can help you administer the
trust competently.
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A trustee should not hesitate to seek professional investment,
accounting, or legal assistance whenever questions arise. Once the
trust procedures are properly established, most trusts can be managed by
individual trustees with minimal assistance from others.
Attorneys, tax professionals, and investment consultants will provide
you with the advice and support you need to ensure that the wishes of
your departed loved one are followed.
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