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Two primary methods of disposing of one’s estate are by a will or by a revocable living trust. Many people today choose the revocable living trust. There are several advantages to having a trust. One is that a trust avoids the time and expense of a court supervised probate proceeding. Many people find this attractive. Some expense is involved in administering a trust post death, but it is substantially less than a probate proceeding. Please look at other articles on the website discussing trustees and trust administration.
If you elect to use a trust for your estate planning you will need to select a trustee. Many clients serve as trustee of their trust, at least initially. However, it is important for you to select a successor trustee to serve when you are no longer willing or able to serve as trustee. You will need a successor trustee to serve upon your death and it is better to have a successor you have nominated rather than have a successor appointed by the court.
Many people agree to administer a trust without having the slightest idea of what it entails. Most believe it to be a simple matter of distributing the trust assets, but it involves much more. A trustee assumes a fiduciary relationship with the beneficiaries of a trust and, as discussed under the article “A Trustee’s Fiduciary Responsibility,” there is an extensive array of legal duties and obligations imposed on a trustee.
A trustee must take care to avoid co-mingling the assets of the trust with the trustee’s own assets. A trustee must be prepared to report to the beneficiaries to keep them informed of the trust’s activities and a trustee generally will have a duty to account to the beneficiaries for the assets, the income, and the expenses of the trust.
Unfortunately, disputes involving wills and trusts cannot always be settled without some form of intervention. This is because emotions run high. The matters often involve disputes among family members. Sometimes, one member of the family believes that another family member has been wrongfully favored, or one family member has abused the trust placed in that person by other family members.
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