what information will the lawyer need from me to make me a trustee

The living trust

lawyers must provide the client with sufficient information so they can determine for themselves whether having their attorney serve as their trustee is the best choice. This means the lawyer will communicate all of the possible issues that could arise, as well as all alternatives, so the client can decide.

Full Answer

How do I Make my attorney a trustee?

Prior to making your attorney your trustee, you should: 1 Seek independent legal advice from another qualified trusts and estates attorney; 2 Provide voluntary, informed, written consent to your attorney; and 3 Make sure that you are well-informed about the impact of any exculpatory terms in the trust. ...

What does a trustee need to do?

Keep track of records and prepare tax-related forms/filings: In addition to preparing and filing tax returns, Trustees also need to keep financial records and statements organized and filed.

Do I need a lawyer for a trust?

Do I Need a Lawyer for a Trust? - FindLaw ... Do I Need to Hire a Living Trust Lawyer? Do I Need a Lawyer for a Trust? You do not need an attorney to make a trust, but you will need to know how to form a trust on your own.

Can a drafting attorney serve as a trustee?

Additionally, trustee compensation for trust management may be limited when the drafting attorney is acting as the trustee. Thus, an attorney may decide it is not profitable to serve as a trustee in addition to their original role as attorney, because the limits on compensation equate more work for less money.

What to Know Before becoming a trustee?

6 Things to Ask Before Agreeing to Be a TrusteeMay I read the trust? The trust document is your instruction manual. ... What are the goals of the grantor (the person creating the trust)? ... How much help will I receive? ... How long will my responsibilities last? ... What is my liability? ... Will I be compensated?

How do you protect yourself as a trustee?

The best way to protect yourself is to contact a probate lawyer or trust attorney as soon as you consent to serve as trustee. An experienced trust lawyer can help you ensure you fulfill your legal obligations and avoid taking actions that could subject you to personal liability.

What is involved in being a trustee?

A trustee is a person who takes responsibility for managing money or assets that have been set aside in a trust for the benefit of someone else. As a trustee, you must use the money or assets in the trust only for the beneficiary's benefit.

Can I make myself the trustee of my trust?

Appointing Yourself as the Trustee of Your Own Trust Legally, you can appoint yourself as the Trustee of any trust you create, whether it is a revocable or irrevocable trust.

Who can become a trustee?

Every person capable of holding property may be a trustee; but, where the trust involves the exercise of discretion, he cannot execute it unless he is competent to contract. No one bound to accept trust : No one is bound to accept a trust.

Who should be a trustee?

Unlike naming a personal representative in a will, there are no legal requirements for someone to serve as your trustee. As a result, you could name a friend or family member as your trustee. However, you want to be sure that they are someone you trust to handle your financial affairs.

What are the three roles of a trustee?

1) Duty to Administer Trust Governed by Instrument (Section 16000). 2) Duty of Loyalty to Beneficiaries (Section 16002). 3) Duty to Deal Impartially with Beneficiaries (Section 16003).

Can a trustee take all the money?

The trustee of an irrevocable trust can only withdraw money to use for the benefit of the trust according to terms set by the grantor, like disbursing income to beneficiaries or paying maintenance costs, and never for personal use.

What powers do trustees have?

However, a trustee will normally be given the following powers:investment;dealing with land;delegation to agents, nominees and custodians;insurance;remuneration for professional trustees;advancement of capital;maintenance of minor beneficiaries;to pay, transfer or lend funds to beneficiaries.

Can a trustee also be a beneficiary?

Both the settlor and/or beneficiary can be a trustee, however if a beneficiary is a trustee it could lead to a conflict of interest – especially when trustees have the power to decide by how much each beneficiary can benefit.

How much does it cost to set up a trust fund?

The Costs Associated with a Family Trust The cost of establishing a family trust is generally $1,000 to $2,000 depending on the structure used.

Can one person make a trust?

Under Indian Trust Act, a settlor can create a trust with his or her own personal property and can officially appoint one or more trustees and lay down the terms and conditions benefiting the identified beneficiary or beneficiaries including one's spouse, own child, relative or any other individual or group of ...

Why won't my attorney accept a trustee?

As mentioned above, there are numerous reasons why an attorney will likely not accept the position of trustee, such as limits on their ability to be fully compensated as a trustee and their elevated level of obligations. Thus, your attorney will not likely accept being appointed as a trustee.

What are the duties of a trustee?

Under the law, a trustee has fiduciary duties including a duty of loyalty, a duty of prudence, and subsidiary duties. If a trustee breaches any of these duties, they will be held personally liable.

What is model rules of professional conduct?

The “Model Rules of Professional Conduct”, a guideline for ethical conduct, cautions attorneys against making agreements that potentially limit their liability. An example of this is when an attorney prospectively seeks to limit their malpractice liability.

What does a trustee do in bankruptcy?

The term “trustee” can also refer to a person who holds property for another during a bankruptcy proceeding. Additionally, a board of trustees oversees a group’s finances.

What is a board of trustees?

Additionally, a board of trustees oversees a group’s finances. Many non-profit organizations operate under a board of trustees. Trusts are regularly drafted by attorneys, so at first glance, appointing your attorney as your trustee seems like a convenient and great idea. However, there are a number of ethical risks that may arise ...

What is the duty of loyalty of a trustee?

The duty of loyalty requires that the trustee administer the trust solely in the interest of the beneficiaries. Also, the duty of prudence requires that the trustee is held to an objective standard of care in managing the trust property.

What is a trustee?

Simply put, a trustee is someone is who has been entrusted with authority to hold property or assets, for specified purposes. A trustee holds property or assets in trust for one person, to be transferred to another. A common example of the creation of a trustee is when a person creates a valid trust and grants authority to a person ...

What do trustees need to do?

That's discretionary and the trustee has to determine if it's a legitimate need and then determine how much to distribute. Keep track of records and prepare tax-related forms/filings: In addition to preparing and filing tax returns, Trustees also need to keep financial records and statements organized and filed.

How can a trustee protect themselves?

Trustees can protect themselves by keeping accurate, detailed records of the financial transactions and distributions. And the single best thing a Trustee can do is really have a solid grasp on and understanding of the Trust’s instructions.

How long does it take to settle a trust?

Most Trusts take between 12 - 18 months to fully settle and distribute all assets. Generally, it takes at least six months (but often longer) to settle a Trust. The time it takes greatly depends on how complicated the Trust is and what provisions are required, as well as how old the beneficiaries are.

What is considered reasonable compensation for a trustee?

A Trustee gets paid what would be considered “reasonable compensation” to fully perform the duties necessary. Trustees are paid out of the Trust assets, and occasionally (though not often) the Trust will define what the compensation amount should be.

What is a trustee in a trust?

A Trustee is a person who acts as a custodian for the assets held within a Trust. He or she is responsible for managing and administering the finances of a Trust per the instructions given. Often, the person who creates the Trust is the Trustee until they can no longer fill the role due to incapacitation or death.

What is the role of a successor trustee?

The responsibilities can include recording expenses and income, distributing funds to beneficiaries, filing taxes on any income the Trust makes and keeping record of other transactions that occur.

What is the purpose of a trustee?

A Trustee has many roles, but the main purpose is to carry out Trust’s directions. The ultimate goal of any Trust is to protect your legacy. So when thinking about “ what does a Trustee do " or " what is the role of a trustee", it’s easiest to remember there are many aspects to the role.

Who creates a trust agreement?

The grantor creates a trust agreement, which is a legal document that designates the grantor, the trustee, and the beneficiaries, and outlines how the trust assets are to be managed and distributed.

How to transfer real estate to a trust?

To transfer real estate, the grantor executes a deed that transfers the title to the property to the trust. Personal property with a title document. Some assets, such motor vehicles, boats, RVs, airplanes, and mobile homes (also known as modular or manufactured homes) have some type of title document, which can be transferred to the trust.

What is a living trust?

Living trust. A trust that is set up while the grantor is alive (also known as an inter vivos trust ). Testamentary trust. A trust that is set up by the grantor's last will and testament. Revocable trust. A living trust that the grantor may change or cancel at any time. Irrevocable trust.

What is an irrevocable trust?

Irrevocable trust. A living trust that the grantor may not change or cancel. Trust agreement. The legal document that sets up a trust. It is sometimes called a Declaration of Trust; however, the title on the document may simply read "The Jones Family Trust," or something similar.

What is the second step in a trust?

The second step, called funding the trust, is for the grantor to transfer assets to the trust. A trust agreement is worthless unless the trust is funded. How this is done depends upon the nature of the property: Real estate. To transfer real estate, the grantor executes a deed that transfers the title to the property to the trust.

How much does it cost to set up a trust?

How Much It Costs to Set Up a Trust? If a lawyer sets up your trust, it will likely cost from $1,000 to $7,000, depending upon the complexity of your financial situation. For example, some situations might require a revocable trust for some assets, and an irrevocable trust for other assets.

Why set up a trust?

A trust is set up to achieve certain benefits that cannot be achieved with a will. These can include: Avoiding probate. Avoiding or delaying taxes. Protecting your assets from creditors of both you and your beneficiaries. Maintaining privacy regarding your assets.

Can I administer a trust myself?

Yes, you technically can administer a trust yourself if you have agreed to be a trustee. However, proper trust administration requires that you have a deep understanding of the legal framework of trust law and the financial concepts involved in managing trust assets.

What is the normal fee for a trustee?

Under California law, trustees are legally permitted to receive “reasonable compensation” for the services they tender, except when the trust provides different terms. Sometimes, the creator of a trust will provide explicit instructions in the trust instrument for how the trustee will be paid.

When should I contact a trust litigation attorney?

We recommend that first-time trustees contact a trust attorney as soon as they are appointed, especially if it’s your first time serving as a trustee. A trust administration lawyer can explain the instructions in the trust document, advise you on your legal duties, and guide you through the trust administration process.

Who can be a successor trustee?

Many people choose a grown son or daughter, other relative, or close friend to serve as successor trustee.

Why do people create living trusts?

Most people create a living trust to avoid probate, but you can also use a living trust to name beneficiaries, set up property management for young beneficiaries, and give someone control of your property if you become incapacitated.

What is the right way to go if you are married?

If you are married or in a domestic partnership and you and your spouse or partner own most of your property together, a shared trust may be the right way to go. Your other choice is two individual trusts. 2. Decide what items to leave in the trust.

Can a child inherit trust property?

If children or young adults might inherit trust property, you should choose an adult to manage whatever they inherit. To give that person authority over the child's property, you can make him or her a property guardian, a property custodian under a law called the Uniform Transfers to Minors Act (UTMA), or a trustee.

Can you make a living trust document yourself?

You can create a simple living trust document (formally known as a Declaration of Trust or trust instrument) yourself, if you have good information and help. For example, you could use either Nolo's Living Trust or Quicken WillMaker.

Can you name a beneficiary in a trust?

It's perfectly legal to name a trust beneficiary—that is, someone who will receive trust property after your death. In fact, it's common. Once you've made your choice, discuss it with the person you have in mind to make sure he or she is willing to take on this responsibility. 5.

Can you hold all your property in a trust?

You probably don't want to hold all your property in your living trust -- just the big-ticket items that would otherwise go through probate. 3. Decide who will inherit your trust property. For most people, choosing family members, friends, or charities to inherit property is easy.