Meet the Trustee’s Team
Grieving the loss of a loved one can feel overwhelming. For the family member named as Trustee or Executor, there are difficult decisions about making final arrangements, paying immediate bills, securing the property, etc.
When a parent becomes ill or has increasing dementia, the Trustee or Agent is often an adult child in charge of personal care planning, financial protection and possibly evaluating an elderly parent’s driving ability. These are unfamiliar and often heart-wrenching transitions.
The Trustee is the “quarterback” of a trust administration, making the calls on such things as accountings, court proceedings, and taxes (or tax-saving measures).
Typically, a Trustee will consult with legal and financial advisors who are knowledgeable about the steps to complete a trust administration. The fees for these professionals are paid from the trust, and are generally tax-deductible expenses. It may be well worth the cost to obtain expert advice to assure you are complying with applicable laws, as well as the specific provisions of the trust. This is why Trustees are advised to seek professional help for guidance on these important decisions. On top of assuring compliance, an expert may know of tools and techniques to save taxes, probate fees, and other administration expenses.
The Trustee’s team may include:
• Trust Attorney – An attorney specializing in estate planning and trusts can assist the Trustee in locating and preserving trust assets, obtaining necessary valuations, dealing with debts and claims, maintaining careful financial records, and finally distributing the assets to the trust beneficiaries. The lawyer’s role is also to advise the Trustee about time-sensitive deadlines and provide required legal notices. Tracking and completing all of these tasks can be time-consuming and overwhelming for even the most experienced Trustee. We are the “coach” on your team to keep you on your game.
• Tax Accountant – The “defense” on your team may be the tax accountant or CPA who will assure that all Income tax returns (personal and for the Trust) are filed, as well as Estate and Gift tax returns if required. Accountants who are experienced in preparing trust tax returns may understand the best tax-saving options and offer protection against some taxes.
• Financial Planner/Investment Advisor – The “offense” on your team may be a licensed financial advisor who can help the Trustee develop and execute an investment strategy for distribution, or ongoing investment, of the trust holdings.
• Real Estate Agent/Appraiser – Every good team relies on statistics to give their team the advantage in making decisions. When a trust holds a home or other real estate, the Trustee will need an accurate property valuation, and a qualified Real Estate Agent or Appraiser has those “stats” for you. A Real Estate Agent may also need to be on the roster if property will be listed for sale.
• Family Mediator – In a crisis, a Trustee may need to call in the Special Teams to handle difficult situations. A mediator may fill the role of a neutral facilitator to guide family members through the process of conflict resolution. A mediator helps the parties think “outside of the box”, thus broadening the range of possible solutions.
• Personal Care Manager – For every all-star quarterback there are countless staff members assisting in the day-to-day operations of the team. A Personal Care Manager, or licensed care agency, can assist by providing services for a loved one, so the Trustee can focus on the big picture.
• Professional Fiduciary – If the duties of a Trustee become too cumbersome or time-consuming, it may be time to call in a backup quarterback, so to speak, and select a professional fiduciary to handle the trust administration. Many banks and investment firms have Trust officers, or a link to California’s list of licensed professional fiduciaries may be viewed on our webpage at www.jwilkerson.net/resources (listed under the California Resources heading).
Trusts are designed to avoid the hassle of “probate” and court supervision, yet a trust administration may still have some complexities. Your team of advisors will ensure that you make no fumbles in your role as Trustee, and that you navigate your duties effectively and efficiently.
If you are a Trustee or Executor needing assistance with administering a trust or estate, please contact us at 530-272-4292, or you may email through our website at www.jwilkerson.net.