When a person is appointed as Trustee, the job can last for many years. At the outset and during certain events during the course of the trust administration, the Trustees must give certain notices to the trust beneficiaries. Trustees are responsible for filing income tax returns annually. Trustees must make sure the terms of the trust are carried out; if income must be paid they are responsible for doing so. If the trust instrument provides for discretionary distributions of principal, the trustee is responsible for exercising such discretion. Trustees are responsible for the trust’s investment strategy.
Upon the termination of a lifetime interest, the resignation or death of a trustee, or the termination of the trust, Trustees are entitled to a discharge of liability, which can be obtained either formally by filing a fiduciary accounting with the Court or informally through the circulation of a Receipt, Release and Indemnification or Non-Judicial Settlement Agreement.
We can help Trustees through the entire process from beginning to end.