A trustee is someone who makes sure to take care of another person’s assets for a number of reasons under legal terms and conditions. There are people who need a trustee for beneficiaries in their investment plan, estate plan, or charitable activities. Every single type of trustee has different unique duties on the basis of the trust category. Hence, the trust deeds are listed under formal government documentations.
Why Set up a Trust?
There are several reasons to set up a trustee, one of the major is that they can help you manage and protect your assets efficiently. Since they keep your trust safe and secured, you can distribute your benefits of those properties with them.
As for formal governing documents, the trustee can make distributions to the beneficiaries and owns the assets of the trust. Following are some duties of a trustee you should know about;
· Act in good faith (honestly and without intention to deceive)
· Keep proper books and records.
· Exercise reasonable care in the administration of this trust.
· Avoid a conflict of interest.
· Not benefit from its position as trustee.
· Carry out the trust’s terms.
How to Select a Trustee?
The crucial and challenging part of setting up a trust is to choose the right trustee. You can have a trustee for tax planning, charitable activities, estate plans, and much more. A Trustee can either be an individual person or a corporate. Whoever you choose, make sure they can manage and invest property in the trust. The following are some types of trustees you should look into;
Bankruptcy Trustee- They take control of assets under legal laws during the time of administration.
Investment Trustee- This type of trustee makes decisions regarding investment in a business or personal account on a daily basis.
Charitable Trustee- These ones manage and protect trusts charitably and distribute it according to the trust owner’s guidance.
Successor Trustee- This one take over and handle whether the trust creator become incapacitated or dies.
If you would like more information, please contact our customer engagement team who would be delighted to assist you further.