What Are The Duties Of The Trustee?
When someone creates a trust, they typically act as the trustee during their lifetime, managing and controlling the property within it. They will also name a successor trustee, who will take over the management and control upon the grantor’s, or creator’s, death. Trustees have very important duties. If you are going to establish a trust, it is critical that you know what these are so you can make the right decision. Below, our Daytona Beach trust administration lawyer explains further.
Trust Administration
The primary duty of the trustee is to make good faith efforts to carry out the terms outlined within the trust. Trustees may violate this duty in a number of ways, such as:
- Failing to provide for the needs of beneficiaries
- Distributing money reserved for a different purpose
- Unreasonably denying or granting requests for trust distributions based on their own judgments instead of the instructions in the trust
Protect the Best Interests of the Beneficiaries
Trustees are required to prioritize the best interests of the beneficiaries. Trustees also should not consider their own needs when administering a trust, beyond being reasonably paid for their services, in some instances. Trustees can violate their duty to beneficiaries in the following ways:
- Transferring money from a trust into the trustee’s own account
- Paying personal expenses with trust funds
- Selling the property within a trust to benefit the trustee or their business
Duty to Remain Impartial
The trustee should not favor one beneficiary over any other. Instead, they must balance the respective interests of beneficiaries and act impartially. Trustees may violate this duty in the following ways:
- Denying funds to one beneficiary while distributing money to another heir for similar reasons
- Paying one beneficiary more than their allotted shared
- Approving one beneficiary’s expenses when they will unfairly depleting other property in the estate
Controlling the Cost of Administration
Trustees have a right to payment for their services. Trustees, however, have a responsibility to ensure all costs associated with trust administration are reasonable. Trustees may violate this duty by:
- Neglecting to obtain competitive bids for services required by the trust
- Paying themselves a fee that is unreasonably high
- Agreeing to quid pro quo arrangements with vendors who charge higher fees
Accounting of the Trust
Trustees must inform beneficiaries of the state of the trust. Some trust instructions require regular updating but even when they do not, beneficiaries have the right to make reasonable accounting requests. Most beneficiaries learn that a trustee has violated their fiduciary duty when they fail to receive an accounting of the trust.
Our Trust Administration Lawyer in Daytona Beach Can Help After a Breach of Duty
If you suspect that a trustee has violated any of their duties, or you need to choose someone who will respect your wishes, you need legal help. At Bundza & Rodriguez, our Daytona Beach trust administration lawyer can help you establish or administer a trust, and provide legal advice if a trustee has violated their duties. Call us now at 386-252-5170 or contact us online to schedule a consultation and to learn more about how we can help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0736/0736ContentsIndex.html
