What does a trustee of a living trust do?

The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust. Both roles involve duties that are legally required.

Can a person be a trustee of a living trust?

This way, if either of you become incapacitated or die, the other can continue to handle your financial affairs without interference from the court—one of the main reasons many people choose a living trust over a will. However, you don’t have to be your own trustee.

How does a trustee distribute money to beneficiaries?

Trustees are required to distribute to trust beneficiaries the inheritances they were left once the trust is settled. Depending on the terms of the trust, distributions can be in the form of the transfer of a specific asset, a lump sum cash payment or periodic payments made over time.

What happens if I change my mind about a trustee?

It would also let you evaluate if this is the right choice to manage your trust in your absence. Naming someone else as trustee or co-trustee does not mean you lose control. The trustee you name must follow the instructions in your trust and report to you. You can even replace your trustee if you change your mind.

Can a trustee bring a claim against a beneficiary?

The trustee misappropriated trust property for personal gain. When property disputes are against beneficiaries, heirs or third parties, it is generally the trustee’s job to bring the claim since they are supposed to represent the best interests of the trust and its beneficiaries.

Who is the trustee of the family home?

It happens over the control of the family home – usually the most valuable trust asset. The home is often in the name of the parent’s living or revocable trust. The parent is the trustee while alive.

Can a trustee of a living trust work the day grandma dies?

If you’re taking over as trustee of a deceased person’s living trust, you are not expected to get to work the day grandma dies. Luckily, most trust and estate tasks are not emergencies and can wait a while so that family members can grieve and make decisions about things like memorial services.

Can a parent be a co-trustee of a trust?

The parent is the trustee while alive. For these purposes, let’s assume that the parent is a widow. She is the mother of four living children. She names two of her four children as successor co-trustees of her trust. These two are to assume the obligations and responsibilities of the trustee at their mother’s death.

This way, if either of you become incapacitated or die, the other can continue to handle your financial affairs without interference from the court—one of the main reasons many people choose a living trust over a will. However, you don’t have to be your own trustee.