What Is a Trustee in Tampa?

When you begin to learn about estate planning in Tampa, you may encounter many new words and phrases. While some families might never have to worry about trusts, others could benefit immensely from their various benefits. After researching trusts, you may have come across the word “trustee.” What exactly is a trustee? How do you choose the best option for your trust – and can an estate planning lawyer help?

Trustees Manage Trusts 

A trustee is the person tasked with managing assets within a trust. Trustees are selected by grantors (the people who establish trusts), and they must act in the best interests of the beneficiaries. These beneficiaries are often the family members and loved ones of the grantor, including children, spouses, and grandchildren. The trustee takes control of the trust assets, but they never use these assets for their own personal gain.

What Are the Trustee’s Duties?

A trustee must do their best to preserve the trust assets. In some cases, the trustee is tasked with growing funds within the trust through responsible, sustainable investments. However, they do not have free reign to make whatever decisions they like without keeping the beneficiaries updated. If the trustee plans to take certain actions, they must communicate their plans with the beneficiaries. Perhaps most crucially, they cannot hide losses from the beneficiaries.

Who Should I Choose as My Trustee? 

There are dedicated companies that offer trustee services. These “corporate trustees” are available through banks, trust companies, and investment companies. Note that in Florida, “self-settled trusts” are illegal. In other words, you cannot become the trustee of your own trusts. A few other states have legalized this strategy.

Many grantors choose close family members as their trustees. For example, this could be an adult child with strong financial knowledge. However, it is important to choose someone who is relatively young – as they need to outlive you in order to manage the trust. This may prove to be a delicate balance, as younger working professionals may have little free time to act as trustees.

Some grantors choose lawyers or accountants to act as trustees. These individuals may have more time and financial/legal knowledge, but grantors should be aware of the management fees. Ultimately, the best decision depends on the unique factors surrounding each family. You may want to review your options alongside an experienced estate planning lawyer.

Learn More About Estate Planning in New Port Richey

While internet research can offer basic answers to the most common questions, estate planning lawyers in Tampa can provide more targeted legal guidance based on your specific circumstances. The concept of a trustee may seem simple at first, but it can be deceptively complex – especially when it comes to choosing the right candidate. To learn more about estate planning in Seminole, consider contacting Knudsen Law at your earliest convenience.

Sources: 

forbes.com/sites/halseyschreier/2022/11/21/selecting-the-right-trustee-to-manage-your-trust/

investopedia.com/terms/t/trustee.asp