A trustee also manages administrative functions such as determining if the assets are titled in the trust name, if the trust has a tax identification number and checking all leases and contracts. A trustee also reviews all investments to see if there is a need for any court oversight, reviews all bills on a timely and ongoing basis and compiles records for annual tax preparation. Essentially, a trustee does the “legwork” for the client. The duties range from answering questions to making special disbursements to paying new bills while helping you maintain control of your estate.

Being a trustee also has a very practical application. The trustee must be active in the management of the trust, be diligent, skillful and continually maintain the client’s need of confidentiality. A trustee also seeks professional advice when needed, is alert to danger signals, supervises persons involved with the trust and trustor and does not delegate authority.

Investment duties are part of the trustee responsibilities such as investing assets or securing a responsible person to provide investment advice. The trust document needs to be reviewed carefully to ascertain the goals, objectives and the needs of beneficiaries. He or she must maintain supervision of any real estate or business interests in the trust and oversee management and finances of any asset. He or she must also carry insurance on trust assets at all times. Trustees also set up a trust checking account and ensure that annual gifts are made to the trustee(s), the annual premium is paid, gift tax returns are filed properly and the annual withdrawal letters are prepared correctly. It is important to ensure trust compliance with the IRS so that the wealth benefit features of the trust are secured.

In Orange County, most individuals who own a home find that a Living Trust is of benefit to them. During the time they are alive and well, they usually serve as their own trustee. In most families, the children or one of the children are usually named as a successor trustee. In cases where there are no children, the children live out of the area or do not have the administrative ability to serve, it is advisable to name a professional trustee.