Life expectancy in the United States is on the rise and is expected to continue to rise as the years go by. In 1970, average life expectancy was around 70 years old; in 2018 it’s hovering close to 79 years young. With the rise of quality of life, there are many positives to look forward to like accomplishing more goals, staying active, and spending time with family.
But it could also be trouble for families in the sense of trust administration.
Creating A Sense of Trust in Trusts
Some people are living longer, are on their second or third marriages and have children from earlier marriages. Current trusts and wills may not clearly map out what’s all included for these children, making it essentially important for a trustee to know exactly what they can do to stay away from liabilities.
Add in the fact that some seniors are currently under care from caretakers who are not their children. There are many factors that need to be considered for both the parties who are investing in trusts and the banks behind it who can look into Bankers Liability Policy.
Understanding the possibilities surrounding liabilities in trust administration can save plenty of legal hassles with family and banking institutions.
Keeping Records
Having carefully documented records and files will help with not only finding what is needed more quickly, but can also represent a sense of togetherness in a legal situation. A trustee needs to be prepared for any possible setback or hiccup when going through trust administration steps.
Trustees should keep well-organized records that include any reasons for making or not making distributions. In doing so, this will help to keep beneficiaries well informed and up-to-speed on business related to the trust. Communicating well may be the difference between a legal dust up and a smooth process.
Intent of Trust & Switching Hands
Trustees can avoid pitfalls and hassles by not taking shortcuts in any administrative processes related to a trust. It’s important to stay strictly close to what is written in any document filed by a court of law. Deviating from this can spell trouble for everyone.
A trust instrument, like a deed of trust, is the best indicator of a trustmaker’s intent. Not being able to add or take away from the legally binding words on a trust document can help bolster legal security. Trustees need to be sure to seek legal help with any possible issue as taking matters into their own hands will open them up to a number of setbacks.
Trustees can stop serving in that position any time, but there needs to be a replacement already in place. Even though a trustee intends to step away from their post in a trust, they are responsible for their duties until someone takes over.
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