One of the most essential decisions a Trustor of a trust has to make is who to appoint as the trustee of the trust. In the ideal circumstance, the trustor discusses the appointment with the proposed trustee before making a final decision. All too often though, a trustor appoints a trustee without the trustee knowing about it or even trust administration. Weeki Wachee residents who have recently found out that you were appointed to be the trustee of a trust, and you have never served as a trustee before, you might be feeling a little intimidated at the prospect of administering a trust. Most of the time, a new trustee will be working closely with an experienced attorney to ensure they do not make any costly mistakes.
Trust Basics For Beginners
Before discussing your role as the Trustee of a trust, it is important that you learn some trust basics. A trust is a relationship where property is held by one party for the benefit of another. With trust administration, Weeki Wachee resident should be aware that a trust is created by a Trustor, also called a Maker or a Grantor, who transfers property to a Trustee. The Trustee is in charge that property for the trust beneficiaries. The beneficiary of a trust can be an individual, an entity (such as a charity or political organization), or even the family pet. A trust must have at least one beneficiary but may have an unlimited number of beneficiaries. A trust may have both current and future beneficiaries.
Advice for the New Trustee
One of the most important aspects for a new trustee is that they understand the trust agreement and the trust administration. Weeki Wachee trustees should read through the trust carefully because a trust agreement is designed to be relatively simple, but they are still legal documents that are filled with legal concepts and jargon that probably are unintelligible unless you have some prior knowledge of legal matters. Another good tip for new trustees is to evaluate and secure the trust assets. A trust can be funded using almost anything of value, including cash, securities, and/or real property.
*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Jhonston & Sasser, P.A*