Important Things To Know About Trust Administration
If you have been named as trustee of someone else’s trust, you may know that your main task is to follow the wishes of the deceased. However, trustees have many important responsibilities. You will have to communicate with beneficiaries, manage the property of the deceased, and comply with many legal requirements. It is also important that you avoid liability. Below, our Daytona Beach trust administration lawyer outlines important things to know as a trustee.
What are the Duties of a Trustee?
As a trustee, you have a legal duty to follow the instructions detailed in the trust and you must also act in the best interests of the beneficiaries. This may include collecting and managing property, resolving outstanding debts, and distributing assets according to the provisions within the trust. You must also keep detailed records and avoid any conflict of interest.
Additionally, you must also exercise diligence and care when handling investments and you must also continually communicate with all beneficiaries. It is also critical that you document all transactions related to the estate. Even the smallest oversight can result in financial liability and legal disputes. It is critical to work with a Daytona Beach trust administration lawyer who can ensure all tasks are properly executed and that you remain in compliance.
What are Florida Requirements for Trustees?
The law in Florida outlines a specific timeline and structure for administering a trust. For example, you must notify all beneficiaries within 60 days of taking on the role of trustee. In some cases, trustees must also provide regular accounts, often on a yearly basis, and be transparent throughout the entire process.
What Trustee Mistakes Can Result in Liability?
It is of utmost importance that you follow all laws and instructions in the trust to avoid personal liability, which can be very costly. Even the smallest mistake can result in serious consequences. Some of the most common issues to arise include:
- Failing to notify beneficiaries
- Missing tax deadlines
- Commingling personal funds with property in the trust
- Overlooking required tax documents or notices
- Failing to maintain financial statements and other records
- Prematurely distributing the estate before debts are paid
To ensure that you remain compliant, it is critical that you remain neutral throughout the process and do not appear to show any side favoritism. It is also critical to work with a Daytona Beach trust administration lawyer who can ensure that you meet all legal requirements and properly comply with the terms of the trust.
Our Trust Administration Lawyer in Daytona Beach Can Guide You Through the Process
If you have been named as successor trustee, there are many tasks you must complete and many steps you must take. If you fail to do this, a beneficiary or interested party may dispute your actions, which can result in very harsh consequences, no matter how honest the mistake is. At Bundza & Rodriguez, our Daytona Beach trust administration lawyer can guide you through the process and ensure you take the necessary steps so you are protected. Call us now at 386-252-5170 or contact us online to schedule a consultation and to get the sound advice you need.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736.html
