Placer Trust Administration Attorney

Why Do People Appoint Trustees?

A trustee is any person or organization that holds the legal title to another person’s assets and has the right to act on behalf of the owner of said assets, called the trustor. Many people appoint a trustee as a means of protecting their assets, guaranteeing the benefits of their successors, and knowing that their legacy is in safe hands after they pass on. A trustee is the person in charge of managing the estate affairs after the trustor has passed. In many cases, the trustee is responsible for ensuring the estate is distributed according to the trustor’s wishes. Many people choose to appoint a family member such as a spouse, child, or sibling as their trustee. Others prefer to appoint a non-family member as a trustee to better guarantee impartiality and eliminate the likelihood of self-dealing and personal conflicts arising when administering to the trust. Banks, trust companies, and attorneys are often chosen as trust administrators if the trustor chooses to appoint a non-relative as their trustee.

Other trustee duties include a set of default trust laws and obligations called fiduciary duties. Fiduciary duties and necessary behavior include:

• Acting with prudence: The trustee is obligated to act as a prudent person would when overseeing matters pertaining to the trust and trust administration.
• Maintaining loyalty: The trustee must act with complete loyalty and responsibility toward the beneficiaries of the trust as well as the stated wishes of the trustor. A trustee is prohibited by fiduciary laws from either self-dealing or involving him/herself in disputes or arguments between beneficiaries or other parties in matters pertaining to the trust.
• Keeping records and making/providing reports: A trustee must keep clear and concise records and provide regular reports to all beneficiaries as provided by the trust or issued by the court.
• Acting with impartiality: A trust administrator is required to operate with total impartiality when dealing with the trust beneficiaries. The trustee is not allowed to show favoritism, give special treatment, or pick sides. They must maintain strict impartiality when communicating with beneficiaries, managing disbursements, investments, or other matters.
• Segregating and identifying trust property: It is crucial and required by law that the trustee keep all trust property completely separate from their personal property.
• Upholding duty to provide all important information to beneficiaries: It is the trustee’s duty to provide the beneficiaries with certain information, whether or not they ask for it. Information trustees are required to inform beneficiaries about the status existence of the trust, the status of the beneficiaries, as well as any changes or significant developments relating to the trust, including trust investments, debts, and properties.

What Are a Trustee’s Duties in Placer, California?

A trustee can be appointed as an administrator to a living trust or a trust created by a will. Whichever type of trust you have been appointed to, many possible duties may come with the appointment. Many of these duties involve managing the deceased trustor’s properties, investments, accounts, and other assets. The specific arrangement between the trustor and the trustee depends largely on the types of assets involved in the trust. For example, if the trust comprises various pieces of land or properties, the role of the trust administrator might be overseeing these properties and performing specific tasks associated with administering a land trust.