Trustee: Who to Choose and What They Do
What is a Trustee?
A Trustee in a Living Trust has similar responsibilities as an Executor in a Will. A Living Trust is the most effective, cost-efficient and private estate plan, administered outside of Probate Court. In contrast, a Will requires Probate. Incidentally, Wills for Heroes provides an excellent service for First Responders by providing them a basic Will that states the distribution of assets upon your death.
However, it is important to understand that all Wills are required to be filed in Probate Court when you die. Probate is a long and expensive court process. Consequently, it is in your best interests to avoid it.
What Does a Trustee Do?
A Trustee follows your instructions in your Living Trust, distributes your assets to your beneficiaries and handles all the responsibilities of your estate at the end of your life.
You decide the specific gifts and the distribution of your assets, by percentage or by amount. You can also provide for any particular circumstances such as the age of distribution and when to sell real estate, act. As a result, your Trustee follows these instructions.
Your accounts will already be in the name of your Trust. Therefore, when you die or become incapacitated, your Trustee will immediately assume responsibility for these accounts and pay any necessary bills.
Your Trustee has a “fiduciary” responsibility to...
