• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Our Firm
    • About Our Firm
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Communities We Serve
      • Minnesota
        • Bemidji
        • Crookston
        • East Grand Forks
        • Fertile
        • Thief River Falls
      • North Dakota
        • Devils Lake
        • Dickinson
        • Grafton
        • Grand Forks
        • Minot
    • Job Opportunities
    • Speaker Connection
  • Estate Planning
    • Asset Protection
    • Business Planning
    • Elder Law & Medicaid Services
    • Estate And Gift Tax Figures
    • Estate Planning Services
    • Family-Owned Businesses & Farms
    • Financial Planning Assistance
    • Incapacity Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Pet Planning
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Trust Administration
  • Elder Law
    • Are You A Caregiver
    • Conservatorship
    • Coping with Alzheimer’s
    • Hospice Care
    • Life Care Planning Services
    • Medicaid Benefits
    • Nursing Home Planning
    • Veterans Benefits
  • Seminars/Webinars
  • Resources
    • Client Resources
      • Estate Planning Resources for Farmers
      • Elder Law Resources
        • Bemidji
        • Grand Forks Elder Law
        • Minot Elder Law
        • Thief River Falls Elder Law
      • Estate Planning Checklist
      • Is Your Estate Plan Outdated?
      • Probate Checklist
      • Probate Resources
        • Bemidji Probate
        • Grand Forks Probate
        • Minot Probate
        • Thief River Falls Probate
      • Relocation Toolkit
      • Top 10 Estate Planning Techniques
    • DocuBank
    • Elder Law Reports
    • Free Medicaid/Long-Term Care Calculator
    • Frequently Asked Questions
      • Asset Protection
        • Business Planning
        • Business Succession Planning
      • Elder Law
        • Medicaid Planning
        • Veteran’s Benefits
        • Nursing Home Planning
      • Estate Planning
        • Estate Planning & Divorce
        • Estate Planning for Women
        • Job of an Executor
        • Families Without an Estate Plan
        • Gift, Estate, and Inheritance Taxes
        • Including Philanthropy in Your Estate Plan
        • Including Your Pet in Your Estate Plan
        • LGBTQ Estate Planning
        • Power of Attorney
        • Serving as Executor
      • Financial Planning
      • Incapacity Planning
        • Social Security Benefits
        • Understanding SSI and SSDI
      • Trust Administration & Probate
        • Probate
        • Small Estate Probate
        • Trusts
        • Wills
    • Newsletters
    • Probate & Estate Planning Savings Calculator
    • Professional Resources
    • Published Books
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
  • Reviews
    • Our Reviews
    • Review us
  • Contact Us
  • Blog

GermanLawGroup

Estate Planning & Medicaid Attorneys in Grand Forks , North Dakota

Call us today(800) 774-7576

  • Facebook
  • Twitter
  • Linkdin
  • Instagram
  • Youtube
Attend A Free Seminar
Home » Explaining the Role of Trustee

Explaining the Role of Trustee

March 14, 2017Trust Basics in Minnesota

Grand Forks trust attorneyOne of the most common additions to a well thought out and comprehensive estate plan is a trust. A trust can be used to help accomplish a wide range of estate planning goals, such as incapacity planning, asset protection, and probate avoidance. When you create a trust, you will need to make a number of important decisions. Among the most important of those decisions, however, is the appointment of a Trustee. Unfortunately, people often spend very little time deciding who to appoint as a Trustee which then leads to the failure of the trust down the road. Part of the problem is that most people do not understand the numerous and varied duties and responsibilities a Trustee has. To ensure that you do not make the mistake of appointing the wrong person as Trustee, a Grand Forks trust attorney explains the role of Trustee.

Trust Elements

A trust is a relationship whereby property is held by one party for the benefit of another. A trust is created by a Trustor, who transfers property to a Trustee. The Trustee holds that property for the trust’s beneficiaries. To create a trust, therefore, you need the following elements:

  • Trustor– the individual who creates the trust.
  • Trustee – the person, or entity, that manages the trust property and oversees the administration of the trust.
  • Beneficiary – the individual, entity, or even pet, that receives the benefits of the trust. Beneficiaries can be current and/or future and may be charitable and/or non-charitable.
  • Terms – created by the Trustor, the trust terms dictate how the trust assets are managed, invested, and disbursed.
  • Funding – almost any type of assets can be used to fund a trust, including, but not limited to, cash, securities, and/or real property.

Duties and Responsibilities of a Trustee

When creating a trust, people often appoint a spouse, friend, or other family member as the Trustee based solely on the fact that they “trust” the individual. While you certainly do need to trust your Trustee, the duties and responsibilities of a Trustee require more than simply a level of trust. Just a few of the duties and responsibilities of a Trustee include:

  • Managing trust assets – the Trustee is responsible for securing and managing all trust assets for the duration of the trust’s existence. The Trustee has a fiduciary duty to the trust with regard to the trust assets as well.
  • Investing trust assets – the Trustee is required to use a “prudent investor standard” when investing trust assets which essentially means that the Trustee must not take risks with trust assets and must be even more careful with those assets than he/she would be with his/her own assets.
  • Abiding by trust terms – a Trustee has a duty to abide by the trust terms as created by the Trustor unless a term is illegal or unconscionable. A Trustee cannot allow his/her own personal opinion to impact the performance of his/her duties as Trustee.
  • Communicating with beneficiaries – the Trustee must communicate on a regular basis with the beneficiaries of the trust and keep them apprised of trust business.
  • Resolving conflicts – if conflicts arise among the beneficiaries or with regard to trust terms, the Trustee is often required to mediate those conflicts or disputes.
  • Keeping detailed records – a trust is a separate legal entity. As such, detailed records regarding trust business must be kept by the Trustee.
  • Paying taxes – because a trust is a separate legal entity, the trust must prepare and pay taxes each year. The Trustee is responsible for ensuring that any tax obligation due from the trust is paid.

How Can a Grand Forks Trust Attorney Help?

If you are contemplating the addition of a trust to your estate plan, you should discuss your options with an experienced Grand Forks trust attorney. A Grand Forks trust attorney can also help you decide who to appoint as the Trustee of your trust to ensure that you appoint the right person for the job.

Contact Us

For more information, please join us for an upcoming FREE seminar. If you have additional questions about the role of a Trustee,  contact the experienced trust attorneys at German Law by calling 701-738-0060 to schedule an appointment.

  • Author
  • Recent Posts
Raymond German, Estate Planning Attorney
Raymond German, Estate Planning Attorney
Attorney at German Law | Wealth
Raymond J. German provides a wide range of estate planning services to his clients, with a primary focus on creating peace of mind providing for the security of their loved ones, reducing taxes and avoiding a probate, all with a well-crafted estate plan. Mr. German defines the mission statement for German Law as “Helping one family at a time pass on values, beliefs and finances, that can be shared for generations to come.”
Raymond German, Estate Planning Attorney
Latest posts by Raymond German, Estate Planning Attorney (see all)
  • Estate Planning Steps for the Beginner - January 26, 2023
  • Common Medicaid Myths Debunked - January 19, 2023
  • Why Single Adults Need an Estate Plan - January 17, 2023

Other Articles You May Find Useful

What Is Involved in Administering a Trust?
What Is Involved in Administering a Trust?
German Law
Trust Administration — Tips for the New Trustee
Trust Basics: What You Need to Know about Trusts and How One Might Fit into Your Estate Plan
Trust Basics: What You Need to Know about Trusts and How One Might Fit into Your Estate Plan

Primary Sidebar

TESTIMONIALS

Client Review
August 24, 2020
    

Needed to come in to get specific advice for our needs. The attorney spoke to us in terms we could understand, coming to our level and did not make up feel uncomfortable. They were very considerate and caring. We didn’t feel rushed. We felt like they cared and knew what they were doing.

C.P., Minnesota
Client Review
August 24, 2020
    

We were wonderfully satisfied. Wayne did an outstanding job of explaining, diagramming and answering questions and concerns.

JW & CD, North Dakota
Client Review
August 24, 2020
    

They were courteous, efficient, knowledgeable, and trustworthy.

D.T., Minnesota
Client Review
August 24, 2020
    

Very helpful. Our children and us are are confident in your group.

-Anonymous, Fargo, North Dakota
Client Review
August 24, 2020
    

"Very professional, covered all, expertise, friendly, peace of mind now."

- Anonymous, North Dakota
Client Review
August 24, 2020
    

So much of a client's high or low opinion of an organization depends on their welcomed feeling. I felt that every time I visited the office, every person I talked with listened and took action on my concern or questions! They were also very friendly.

~J.R., Grand Forks, ND
Client Review
August 24, 2020
    

From phone calls to signing the final documents I was treated with respect, kindness, and understanding by Wayne & Jenn. Every business that wants their business represented well should have someone like Jenn & Wayne. They both made me feel relaxed and assured I was at the right place at the right time at this time in my life. 

~ Deborah Rucinksi, North Dakota 
Client Review
August 24, 2020
    

All of the paperwork was completed in a timely matter. Wayne was very good in explaining the trust to us. 

~Anonymous
Client Review
August 24, 2020
    

Thank you for taking care of my finances after I am gone. I worried about probate once; hopefully this has been solved. Everyone was very polite and helpful. Thank you Katie for answering my questions, and also Jenn.

- Anonymous
Client Review
August 24, 2020
    

This Avvo rating is killer and so deserved! You are the best brother! The only thing is I think the 10 rating is too low, in my book you go to 11! Congratulations on the award, you should be very very proud. See you at your Holiday party, thx for the invite.

Anthony G., Los Angeles, CA
Client Review
August 24, 2020
    

Everyone at German Law was helpful and pleasant. I felt good about my decision, I thought I was doing the right thing for myself & my family. Wayne took his time and didn't rush, which is good because a lot of this can be over people's heads.

A.W., Red Lake Falls, MN
Client Review
April 15, 2021
    

Excellent

Very interesting, informative and valuable information and ideas.

Valuable information.

RP
Client Review
April 15, 2021
    

5 STARS! Thanks for allowing this to be on a webinar! Very interested in this topic.

Great Estate Planning Guide

SD
November 25, 2022
    

John provided very short turn-around time that we needed. He built an amortization schedule that really met our needs. He was responsive and very easy to work with! Quick and easy!

 

Cammy was also very helpful and professional!

November 25, 2022
    

Really Liked it.
Assisted by John Oelke

November 25, 2022
    

Excellent!

<
>

Subscribe to Our Blog

Subscribe to our blog to get the latest estate planning news and updates!
  • This field is for validation purposes and should be left unchanged.

FREE ESTATE PLANNING WORKSHEET

  • This field is for validation purposes and should be left unchanged.

Where We Are

German Law
2650 32nd Avenue South, Suite O
Grand Forks, ND 58201
Phone: (701) 738-0060
Fax: (701) 738-0064

See Larger Map Get Directions

Office Hours

Monday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Tuesday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Wednesday8:00 PM - 12:00 PM and 1:00 PM - 5:00 PM
Thursday8:00 AM - 12:00 PM and 1:00 PM - 5:00 PM
Friday8:00 AM - 12:00 PM

Map

Footer

  • Speaker Connection
  • Advantages of Working With Our Firm
  • About The American Academy
  • Sitemap
  • Contact Us

Connect to Us

  • Facebook
  • Twitter
  • Linkdin
  • Instagram
  • Youtube
footer-logo

© 2023 German Law
All Right Reseved.

Attorney Advertisement