What are the Responsibilities of a Trustee of a Revocable Living Trust?
A trustee of a revocable living trust is responsible for managing the assets and affairs of the trust during the grantor’s lifetime and after their death or incapacitation. A revocable living trust is a legal instrument that allows you to transfer your assets to a trust during your lifetime, which can provide you with certain benefits such as avoiding probate, providing for the management of your assets if you become incapacitated, and allowing for the efficient distribution of your assets after your death.
Here are some of the key responsibilities of a trustee of a revocable living trust:
1. Asset management: The trustee is responsible for managing the assets held in the trust. This includes investing the assets, making distributions to beneficiaries, paying bills and expenses, and maintaining accurate records of all transactions.
2. Fiduciary duty: The trustee has a fiduciary duty to act in the best interests of the trust and its beneficiaries. This means that they must always act in good faith, avoid conflicts of interest, and manage the assets of the trust in a prudent manner.
3. Record-keeping: The trustee is responsible for keeping accurate records of all transactions related to the trust, including investments, distributions, and expenses. They must also provide regular reports to the beneficiaries and keep them informed about the status of the trust.
4. Estate administration: After the grantor’s death, the trustee is responsible for administering the estate according to the terms of the trust. This includes making distributions to beneficiaries, paying any outstanding debts or taxes, and filing tax returns for the trust.
5. Communication with beneficiaries: The trustee must keep beneficiaries informed about the trust and its administration. They must also provide accountings and other information upon request.
It’s important to choose a trustee who is trustworthy, responsible, and capable of managing the assets of the trust. You may choose to name a family member or friend as the trustee, or you may opt to use a professional trustee such as a bank or trust company. It’s also a good idea to name a successor trustee in case the initial trustee is unable or unwilling to serve.
Speak to a Skilled Washington Estate Planning Attorney About Your Options
To learn more about the role of a trustee in your estate plan, you should consult a skilled Washington estate planning attorney. Call Gregorek & Associates at 425-284-3450 or fill out our contact form and we will be in touch to schedule a meeting.