Creating an estate plan involves many important decisions. From distributing assets to making healthcare choices, each decision helps ensure your wishes are honored and your legacy is protected. One of the most difficult choices is deciding who will carry out those responsibilities.
A revocable trust is meant to provide clear instructions and reduce confusion after your death. In many cases, its purpose is to make the process easier for your family. While you are living, you serve as your own Trustee and continue managing your estate as usual. After your death, however, the responsibility for administering the trust and distributing your estate passes to the person you name as Trustee.
A Trustee is the person you appoint in your trust to manage matters after your death. Although in Utah any adult can serve in this role, the choice deserves careful thought. Your family and estate will depend on the Trustee to distribute assets properly and address issues such as taxes and creditor claims.
Many people choose a close family member to serve as Trustee, such as an adult child, sibling, parent, or cousin. If no family member seems like the right fit, they may instead choose a trusted friend or a professional trust administrator, often called a Corporate Trustee. No matter who is selected, that person must act as a fiduciary and carry out the trust according to its terms.
An acting Trustee takes on many responsibilities. To perform the role effectively, the Trustee must understand the trust's terms. In general, the Trustee has authority to manage trust assets as allowed by the document. Depending on the trust's provisions, this may include selling real estate, filing taxes, resolving claims against the estate, communicating with beneficiaries, filing insurance claims, and accessing financial accounts.
A Trustee may also need to handle one beneficiary's share differently from another's. For example, in Utah, a beneficiary under age 21 generally cannot receive a full lump-sum distribution. Instead, the Trustee may need to hold that share in a Minor's Trust Account or a separate Minor's Trust, depending on the trust language and state law. If the trust provides for a beneficiary with special needs, the Trustee may be required to distribute that share to a special needs trust rather than directly to the beneficiary.
During trust administration, beneficiaries may seek to change the trust's terms. In that situation, the Trustee is responsible for defending the trust and following any procedures required to ensure its terms are carried out. Trustees must also provide an accounting of their actions while administering the trust estate.
Ultimately, the Trustee is responsible for carrying out your wishes regarding asset distribution and ensuring the trust is properly followed. Because this role can be demanding, it is important to think carefully about who is best suited to serve. An experienced estate planning attorney can help you evaluate these considerations and choose someone who will faithfully carry out your trust and protect your legacy.
