Page 6 - Jupiter West- June '23

Page 6, Jupiter West
Have You Chosen The Right Trustee?

Submitted by Anné What Should You Look For When Selecting A Trustee? trustee’s discretion. If your trustee is also a beneficiary, they
Desormier-Cartwright, Esq. While it may be advantageous for a trustee to be could choose not to accept any compensation for acting as
Whether you are financially savvy or have a background in tax, law, trustee because they will already be receiving something
reviewing your existing or finance, they are not required qualifications. When as a beneficiary of your trust. However, allowing the
trust or creating a new trust, considering potential trustees, we recommend looking beneficiary to be the trustee of your trust could jeopardize
you should understand the for someone with following qualities: or limit the protection of their inheritance.
important role that a trustee ● Ability to ask for help when needed. The trustee ● Close friends. Close friends likely understand your
plays not only in handling does not have to be an expert in every area of trust values and wishes, making any discretionary decisions
trust matters but also in administration. They can get assistance from financial easier; however, depending on your family dynamics,
providing for and protecting advisors, tax preparers, and attorneys at the trust’s your close friends may not want to get involved in any
your loved ones. expense to fully carry out their responsibilities. conflicts that arise. Also, if they are not trust beneficiaries,
What Is A Trust? ● Be detail oriented. Trust administration is a process they may want to be compensated for the work they do,
A trust is an agreement between an owner of accounts with specific legal steps that must be taken. The trustee which could leave some beneficiaries feeling disgruntled
and property (trustmaker) and another person (trustee) who will be asked to compile a list of everything that the trust that your trustee is getting money from the trust (even
agrees to manage the accounts and property on behalf of a owns and keep accurate records of income and expenses. though the trustee is legally entitled to it).
third party (beneficiary). In most situations, there is a written Being too general with this information can cause tension ● Professional third party. If protecting your
document, called a trust agreement, that lays out the specific between the trustee and beneficiaries and could lead to beneficiaries’ inheritances is important to you, a
instructions or rules that govern the trust relationship. legal action. professional may offer additional protection. Because
What Is A Trustee? ● Be organized. Depending on what the trust administering trusts is their profession, they will likely
A trustee is a trusted decision maker who is tasked with owns, how many beneficiaries there are, and the trust understand every step that must be taken and have the
handling all matters that relate to your trust. Depending on distribution plan, there may be a lot of moving parts. In tools to efficiently and accurately do so. However,
the type of trust, you could be the trustee in the beginning addition to managing the trust, the trustee will need to because trust administration is their job, they will require
and need someone else to act as trustee only when you are make sure that they do not mix their personal affairs with compensation and will inform you of their fee. This
unable to manage the trust, or you could select a trustee to those of the trust. amount will likely be higher than what a family member
act immediately. ● Have good communication skills. Although the or close friend would seek in compensation.
What Types Of Trustees Are There? trustee has authority over the trust, they are supposed We understand that you have an important decision
When creating an estate plan, there are several types of to act in the best interests of the beneficiaries. It is ahead of you. We are here to guide you through the
trustees to consider. An initial trustee is the decision maker important that the trustee clearly communicate with decision-making process and answer any questions
that immediately starts managing the trust’s accounts and the beneficiaries, deliver necessary information, and be you may have along the way. Call us to schedule an
property. You may choose to be the initial trustee if you available to answer any questions that the beneficiaries appointment so we can help you check this item off your
create a revocable living trust. However, for some types of may have in a timely manner. A trustee must also be able to-do list.
irrevocable trusts, you will need to select someone else to to get along with the beneficiaries. Call our office today at (561) 694-7827, Elder & Estate
be the initial trustee. ● Follow rules. State and federal laws, as well as Planning Attorneys PA, 480 Maplewood Drive, Suite 3,
The successor trustee is the next in line to manage the instructions within the trust, must be followed. While a Jupiter, FL 33458.
trust. This person may need to act because the initial trustee trust may have provisions that allow a trustee to use their The content of this article is general and should not be
becomes incapacitated, dies, or steps down from their role. discretion in some matters, there are other instances in relied upon without review of your specific circumstances
You could choose to have one trustee handle the entire which the trustee is required to do certain things a specific by competent legal counsel. Reliance on the information
trust. You could also choose to name a separate trustee for way. Failing to comply with the rules can subject the herein is at your own risk, as it expresses no opinion by
any subtrusts that you later create. For example, you may trustee to potential civil and criminal penalties. the firm on your specific circumstances or legal needs.
name your children as the trustees for the subtrusts that are Who Can You Choose To Be Your Trustee? An attorney client relationship is not created through the
created for their benefit at your death. In this instance, there Although the choice of trustee is a very serious matter, information provided herein.
may be several trustees acting once the subtrusts are created. you have several options available to you depending on To comply with the U.S. Treasury regulations, we must
However, they will only be responsible for their separate trust your circumstances and what matters most to you. inform you that (i) any U.S. federal tax advice contained in
and will have no control over other subtrusts that have their ● Family members. It is common for clients to select this newsletter was not intended or written to be used, and
own trustees. family members (spouse, child, parent, sibling, etc.) to cannot be used, by any person for the purpose of avoiding
What Does A Trustee Do? be their trustees. Family members likely have an intimate U.S. federal tax penalties that may be imposed on such
Being a trustee involves many different important tasks, knowledge of your wishes and values, making trust person and (ii) each taxpayer should seek advice from their
including the following: administration easier if you want to leave decisions to your tax advisor based on the taxpayer’s particular circumstances.
● Managing accounts and property owned by the trust
or subtrust. Although the trust owns your accounts and
property, a person needs to carry out most transactions. If the
trust owns an investment account, the trustee must watch the
investments and request any adjustments that may be needed
to ensure the best outcome for the trust and its beneficiaries.
● Keeping the trust beneficiaries informed about
the trust. Although the trustee decides how trust accounts
and property are used, they do so on behalf and in the best > edwardjones.com | Member SIPC
interests of the trust beneficiaries. A trustee is required to
periodically inform the trust beneficiaries about the status of
the trust – what the trust owns, how much the trust is worth,
what income the trust has received, and what expenses the
trust has paid.
● Acting as a point person for trust matters. If 747-PALM
beneficiaries have questions about the trust, the trustee is
usually best suited to answer them. The trustee is also in 747-7256
charge of filing tax returns and participates in any lawsuits
involving the trust.
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> edwardjones.com | Member SIPC

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account? How can I
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help walk you through your
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Can I withdraw funds? Can I convert my

account? How can I generate income?

Call or email me today, and we can help walk you through

your retirement account options.

Sally S Stahl, AAMS™

Financial Advisor

1851 W Indiantown Rd Ste 106
Jupiter, FL 33458
561-748-7600

IRT-4395H-A