Want to be a Trustee? Here is what you need to know!

One of the best ways to protect your assets after your death is the creation of a trust.

These legal entities help protect your assets and distribute them how you want them distributed. There are no questions about who gets what, and your estate can often eliminate substantial tax burdens. Everything is kept private, so there is no public record of the distributions, although there must be an annual accounting of the beneficiaries.

There are also many different types of trusts, including one for your pets!

But a key part of creating all trusts is designating the trustee, the person who controls the assets and distribution of the trust after your death. The trustee can be just about anyone you choose, but they should understand what is involved – and it is not easy.

Of course, the attorneys at The Orlando Law Group can work with you on creating a trust and work with the trustee to ensure that the trust is following the directives you put into the trust.

Here are a few roles of the trustee.

1. Giving appropriate notice: Under the Florida Trust Code (Sections 736.0101-736.1301), the trustee must provide formal notice to the beneficiaries that the trust has been created and that they are involved. The trustee files a Notice of Trust with the county court for the jurisdiction where the grantor died and a Notice to Trust Beneficiaries. This document informs the beneficiaries about their right to account information and other trust materials. The trustee must give notice within 60 days of accepting their duties.
2. Paying final expenses: Trustees will be responsible for using trust assets to pay for any final expenses, including burial and funeral costs. They will use funds specifically set aside in the trust to pay these bills, along with any costs of setting up the trust.
3. Setting up the trust: Setting up the trust requires four main actions.
   1. Deposit the original will with the probate court. The trustee must locate and present your will to the county probate court within ten days of the death.
   2. Order death certificates. Death certificates are obtained from whoever is handling the final arrangements, such as a funeral home. They are used for securing payments from insurance policies and ending liabilities.
   3. Review the terms of the trust. The trustee will review the conditions and fulfill your wishes within the terms of the trust. This is when working with a trust administration attorney can be extremely valuable.
   4. Get a tax number for the trust. To pay taxes, the trustee will need to request an Employer Identification Number (EIN) from the IRS. They can then manage the trust as a business entity and conduct its financial business.
4. Gathering and protecting trust assets: The trustee will take control of all the trust’s assets, including compelling any former trustees to release control. The trustee assumes a fiduciary duty to maintain, protect, and invest the assets impartially and prudently for the good of the beneficiaries and the trust itself. Protecting assets involves paying outstanding taxes, bills, and mortgages. The trustee will file tax returns for the trust and provide an annual accounting to beneficiaries to demonstrate their good faith management.
5. Overseeing transfer of non-trust assets: Not everything you leave to your heirs will be part of the trust. The trustee will be charged with ensuring all property and money is successfully transferred to the intended recipients, even when it is not part of the trust. Trustees should oversee the transfer of items such as the following: