What are the Responsibilities of a Trustee of a Living Trust?

A trustee of a living or revocable trust is responsible for managing the assets that have been placed into the trust by the grantor. A living trust is a type of trust that can be changed or revoked by the grantor during their lifetime, so the trustee’s role may change over time as the grantor makes updates or modifications to the trust.

The trustee’s duties typically include managing the assets in the trust, investing trust assets (usually working with the grantor’s financial planner), distributing income and principal to beneficiaries according to the terms of the trust, paying any taxes or expenses associated with the trust, keeping accurate records of all transactions, and providing periodic reports to the beneficiaries as outlined in the trust documents.

During the grantor’s lifetime, the grantor(s) may serve as the trustee(s) of their own living trust, with a named successor trustee taking over after their death or incapacity. In some cases, alternatively, the grantor may name someone else to serve as the initial trustee of the trust, with a plan in place for a successor trustee to take over in the event of their death or incapacity.

Overall, the trustee of a living trust has a fiduciary duty to act in the best interests of the beneficiaries of the trust, and to manage the trust assets prudently and in accordance with the terms of the trust.

Ultimately, choosing the right fiduciary for your estate plan requires careful consideration and evaluation of your options. It is important to choose someone who is trustworthy, competent, and able to carry out your wishes in the event of your incapacity or death.

Work with an Experienced Virginia Estate Planning Attorney
If you would like to review the selection of the Trustee of your Living Trust, we are here to help. Contact Wilson Law PLC today at 866-603-5976 to set up a meeting or fill out our contact form and we will call you to schedule your meeting.