Trust administration doesn’t have to be a daunting process when you allow our attorneys to help you. Our goal at Millman Law Group PLLC is to make estate planning a smooth process for you, and most well-thought-out estate plans include a trust. More people now than ever before, due to the pandemic, are starting to think about their futures. They’re also thinking about how fruitful and successful life will be for their children after they’re longer here. A common misconception is that only highly wealthy families put trusts in place. However, now the average person recognizes the benefit of a trust, including avoiding Florida’s daunting probate process.
Trusts have come a long way in that a specialized trust exists for almost every estate planning objective. One commonality for every trust is that you have to appoint a trustee to oversee that trust’s administration. If someone has designated you as a trustee, or you’re someone who is considering an estate plan, here are four need-to-knows about trust administration.
A Trustee is Responsible for Fiduciary Duty
Fiduciary duty means that legally a person must act only in another party’s interests. The responsibilities of a fiduciary include loyalty and reasonable assets within custody. Each of the fiduciary’s actions has the best interest of the beneficiary in mind.
A Trustee Has to Use the “Prudent Investor Standard” at All Times
As a trustee, you may have to invest assets owned by the trust. If so, you should follow the “prudent investor standard, which means that you invest trust assets as if they were your own. The managing investor responsible for this should consider the beneficiaries’ needs, how much regular income is coming in, asset preservation, and avoid risky moves.
A Trustee Should Consider What’s in the Best Interest of Present and Future Beneficiaries
A trust can contain present and future beneficiaries simultaneously. For example, a Settlor can provide a specific time frame to a charity and distribute the assets’ remainders to a non-charitable benefit or vice versa. If this is the case, trust administration requires that you have discernment about what will benefit both charitable and non-charitable beneficiaries.
Trusts are Separate Legal Entities
In other words, the trust can own real property, tangible property, and intangible property. In the State of Florida, a properly funded revocable or irrevocable trust avoids probate and makes the administration of your affairs seamless to the next generation.
MILLMAN LAW GROUP PLLC WILL HELP YOU STREAMLINE TRUST ADMINISTRATION
Millman Law Group, PLLC is rare because it’s one of the only law firms that offer life planning in South Florida. From life care planning to the preparation of detailed estate plans, Millman Law Group has committed to serving Floridian elderly communities in Boca Raton, Palm Beach County, Ocean Ridge, Hillsboro Beach, and many other areas since 2018. Our dedicated team also specializes in special needs trusts and catering to any age demographic because we know for certain it’s never too early to start preparing you and your family for your future. For the latest news in estate planning and elder care law, follow us on Facebook, Twitter, Linked In, and Pinterest. You can also contact us at 561-463-6480.