Trustees play an essential role in estate planning. The decisions they make have consequences for all parties involved. That is why, if you are a beneficiary in a trust, you must understand the trustee’s responsibilities. This will allow you to identify wrongdoing and take legal action if necessary.
1. They must protect the beneficiaries’ interests
A trustee owes fiduciary duties to all the beneficiaries. This means they must consider everyone’s interests and avoid favoring themselves. Sometimes, when a trustee is also a beneficiary, conflicts may arise. To prevent this, a trustee must be able to remain impartial. If they fail to do so, you can seek legal counseling to evaluate your options.
2. They must follow the conditions of the trust
A trust is a legal instrument that allows property and assets to be passed on from one individual to another. Still, trusts usually have conditions that must be followed by all parties involved. If you are a beneficiary in a trust, you should understand its conditions. This way, you will be able to identify any violations of the conditions of the trust.
3. They can receive compensation for their duties
In estate planning, the grantor can allocate some assets to pay the trustee for their duties. However, a trustee can also perform their duties voluntarily. Depending on the conditions of the trust, a trustee might receive compensation for their responsibilities.
Being a trustee comes with great responsibility. They are in charge of administering the trust and must consider everyone’s interests before making decisions. If you suspect the trustee is failing to perform their duties, you can start a legal procedure. A favorable resolution could include compensation for lost assets and penalties for wrongdoing.