Trust administration is an important job, and you should satisfy yourself that the person you appoint as your trustee is well-equipped to fulfill the role.
The trustee should have a good system for trust accounting. Trust funds must be held in a separate account and the trustee must keep separate records of income and principal, disbursements, receipts, and capital transactions. The trustee has a duty to provide information to the trust’s beneficiaries. The trustee must be equipped to handle many other recordkeeping responsibilities, including preparing tax documentation and handling trust-related correspondence.
The trustee may administer multiple trusts at the same time. As a result, it is important they have trained and experienced staff members who are knowledgeable about trust administration.
Next week I’ll discuss trustee accessibility.
