WHAT IS TRUST ADMINISTRATION?
Although the trust administration process is far superior than administering an estate through probate, there is still much to consider. Government mandates are still in place with regard to taxes and fiduciary responsibilities, which mean trustees bear a significant level of responsibility and accountability. This fact is epitomized by the saying: “With freedom comes great responsibility.”
Given that accepting the role of successor trustee carries with it a significant amount of responsibility, the decision should not be made lightly. Being a trustee means much more than just administering and managing the funds of a trust. It also involves adhering to the strict standards and unique responsibilities of the fiduciary relationship between trustee and beneficiary. If these standards and responsibilities are not met—intentionally or otherwise—the trustee may be held liable for any reduction in the value of trust property and suffer serious financial consequences.
In light of the possible financial pitfalls involved, it is crucial for trustees or prospective trustees to engage qualified legal counsel. We encourage you to contact our office for a complimentary consultation to discuss your potential liability and assist you in better understanding what lies ahead and how to make informed decisions.