Meinzer Law Firm, PC

Some common issues with trust administration

A trust can be a great way to protect assets for loved ones who are set to inherit them. Yet, the effectiveness of a trust is often left in the hands of a trust administrator. This person may be named by the individual who created the trust, or he or she may be appointed by the probate court. Either way, the trust administrator, also called a trustee, carries a heavy responsibility that often comes under close scrutiny.

Trust administrators are considered fiduciaries, meaning that they have a duty to act in the best interests of named beneficiaries. Therefore, in some cases beneficiaries claim that trust administrators fail to properly invest trust assets in a way that further the beneficiary's best interests.

This is why trustees should make sure they are following state investment laws and consider developing an investment policy that clearly delineates the goals that are being pursued. Those who are administering a trust should refrain from merely maintaining the investments in place when a trust's creator passes away, as this may not shield them from liability if an heir claims that the trust assets are being mishandled.

Trustees also have to make sure that tax matters are handled in a timely fashion. This means filing tax returns pertaining to the trust and its assets, as well as providing tax statements to beneficiaries. Any tax penalties that are imposed on the trust may be redirected to a trustee due to liability in ensuring timely filing.

Serving as a trustee can be immensely rewarding, but it can also be stressful. However, with a firm understanding of the law as it pertains to these matters, individuals can proceed with confidence in their actions. Oftentimes, Californians seek out legal assistance when handling trust matters, from creation to administration, which is why firms like ours stand ready to help.

No Comments

Leave a comment
Comment Information

Schedule A Consultation

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Email Us For A Response

Office Location:

3878 West Carson Street
Suite 104
Torrance, CA 90503

Phone: 310-375-3350
Fax: 310-375-3550
Torrance Law Office Map

Review Us

Phone Numbers: