Estate owners rely on estate planning strategies to preserve assets, protect their best interests, and honor their wishes after death. Trusts are well-known estate planning tools for naming a trustee or co-trustees to manage, protect, and distribute assets according to the terms and fiduciary responsibilities. Georgia estate owners name trustees they believe will follow through on their duties. Unfortunately, some trustees break the agreement and do not fulfill their fiduciary duties or honor the trust’s terms. Read our article, “Understanding Marital Trusts In Your Estate Plan,” for more on trusts.
The case discussed in WealthCounsel’s article, “Trustee of Living Trust Who Was Beneficiary of Decedent’s Residuary Estate Had Duty to Collect and Protect Assets Not Yet Transferred to Trust,” reminds us to take steps in naming the right trustee and draft the terms carefully. This article answers the questions: What are a trustee’s responsibilities? What does it mean to breach their duties? How can an Atlanta estate owner avoid that situation?
What Are an Atlanta Trustee’s Responsibilities?
The beneficiaries’ best interests are central to a trustee’s responsibilities. They gather and inventory the estate’s assets, including funds and other property, to manage and protect them until it’s time to distribute them. Trustees keep the assets separate from other funds and property, maintain accurate records, and report their trust-related activities. A trustee has fiduciary duties to act in alignment with the trust’s terms, avoid conflicts of interest, and be diligent and honest.
What Can Happen if a Trustee Breaches Their Duties?
The case discussed in WealthCounsel’s article involved three beneficiaries, three co-trustees, and assets meant for a restated revocable trust. Richard Ripps, the decedent, intended to distribute the remainder of his estate to his three children and their mother. The mother, as a co-trustee, sought damages and to remove another co-trustee who happened to be Richard’s widow, Barbara Lembo. The mother took Barbara to court, asserting that she did not collect and protect trust property, among other things, and breached her co-trustee duties.
Richard Ripp’s trust underscores a trustee’s responsibility to protect the heirs’ best interests and trust assets through proper administration. In this case, the Connecticut Supreme Court emphasized that trustees are entrusted with a fiduciary duty from acceptance. This duty extends to the diligent collection and protection of assets.
How Can Atlanta Estate Owners Avoid Trustee Trouble?
Trusts are an essential tool in estate planning. Consider the friends or family members you can rely on who are sensible and loyal enough to be diligent trustees. Communicating with a potential trustee goes a long way towards ensuring that they fulfill their responsibilities and fiduciary duties. Asking the person if they can and are willing to act as a trustee can give you peace of mind that they will honor trust terms and act in the beneficiaries’ best interests.
Clarifying your wishes, administrative duties, and beneficiaries’ interests helps your trustee or co-trustees fulfill their duties and prevent disputes that might lead to county court intervention in Georgia.
Work with the knowledgeable estate planning attorney Timothy Wooten at The Wooten Law Firm in Atlanta to outline detailed trust administration terms and instructions. Book A Call.
Trustee Responsibilities in Georgia Estate Planning Key Takeaways:
- Proactive Engagement Matters: Trustees are responsible for safeguarding assets from the moment of acceptance, underscoring the importance of early and proactive engagement.
- Fiduciary Diligence is Paramount: Trustees must uphold the trust’s best interests.
- Clear Communication is Essential: Clarity on your wishes, administrative duties, and beneficiaries’ interests helps your trustee or trustees fulfill their duties and prevent disputes.
Conclusion
Trusts are core estate planning tools that protect and distribute your assets after you are gone. It’s important to name a trustee who will act according to the trust’s terms and fiduciary responsibilities. Whether creating or updating an estate plan, Book A Call with The Wooten Law Firm LLC in Atlanta, Georgia.
Reference: WealthCounsel (Jan 19, 2024) “Trustee of Living Trust Who Was Beneficiary of Decedent’s Residuary Estate Had Duty to Collect and Protect Assets Not Yet Transferred to Trust.”