Helping you by bringing customization and convenience to the role of Trustee.
Generally, a Trustee is responsible for:
Investment management - The Trustee Services Group does not manage wealth but rather works with the wealth manager of the family’s choosing.
Who would you like to be responsible for the investment management of the trust assets?
Trust Accounting and Administration - The trustee is required to administer the trust in accordance with both the terms of the trust and the governing law. Trust administration obligations include maintaining accurate records, proper tax reporting, and making reports to beneficiaries of the trust as requested and/or required by law. All income to, distributions from, and expenditures by the trust must be accounted for. Additionally, the trust principal and income must also be reported and tracked.
Who would you like to be responsible for the trust administration?
Trust Distributions - The trust will specify who is entitled to distributions from the trust, in what amount and when. Although this may initially sound simple, such determinations can be quite complex, especially when balancing the competing interests of the trust income beneficiary and those entitled to the trust principal upon termination of the trust. For example, many trusts will allow for the trustee to access and distribute trust principal to the income beneficiary if necessary for the beneficiary’s “health, education, maintenance or support”. In addressing this daunting question of whether a principal distribution is allowed and justified, the trustee must also be aware of the potential liability to the remainder beneficiaries of the trust if such distribution is challenged and improperly made.
Who would you like to be responsible for the trust distributions?
Trust Tax Return - Depending on whether the trust is revocable or irrevocable and whether it is considered a "grantor" trust for tax purposes, the trustee will have to file an annual tax return and may have to pay taxes. In many cases, the trust will act as a pass through with the income being taxed to the beneficiary. Many clients of the Trustee Services Group will use their CPA or accountant to file tax returns on behalf of their trust.
Do you have someone who will be filing the tax return on behalf of your trust?