Being part of aliving trust my husband and I were naturally interested in getting complete details on the creations, duties of successor trustees etc. I was referred to a professional piece of literature that I believe is the best in the fxield. The c ost is under $15 and the book is "Understanding living Trusts" by Vicki and Jim SchumacherThis work details the step by step responsibilities of the successor trustee. You can reach them at 1(800) 728-2665 and order a copy if you are interested. My attorney uses this as a reference.
I've read the posts so far that deal with this subject and since I'm an attorney that deals with trusts and is also a trustee for some clients (as well as my own Mother), I can say that everyone that's been posting suggestions is right on target; except that I personally don't feel that any one book I've seen (and I see a lot of them) are all that good. The key to being a good trustee, though, has been very well expressed here. The trustee has a fiduciary obligation-- that is, an obligation or duty of trust and confidence. If you act in accordance with the best interests of the Grantor, and if you invest assets prudently (there is something called the "prudent investor" rule which requires a trustee to invest assets reasonably), then you'll be fine. I, myself, don't ascribe to the idea that a trustee should invest assets to benefit the heirs rather than solely for the benefit of the Grantor, but that is my personal view.
<< I, myself, don't ascribe to the idea that a trustee should invest assets to benefit the heirs rather than solely for the benefit of the Grantor, but that is my personal view. >>Yo, Wyatt.IMO it really depends on the type of trust we're talking about. I heartily agree that with a revocable, living (or inter vivos) trust, assets should be invested in the best interests of the grantor, and to heck with the heirs for the most part. OTOH, for an irrevocable trust the assets should be invested for the sole benefit of the beneficiary of that trust.I make that distinction only because my experience on The Motley Fool boards tells me that too readers think all trusts are alike. The questions in the previous posts almost certainly deal with the issues surrounding a living trust, but you never know.BTW, you made two great posts. Be sure and stop by with your contributions again!Regards...........Pixy
Well, I agree and disagree with you that where there's an irrevocable trust the assets should be invested for thebeneficiaries. First, keep in mind that an irrevocable is quite a different animal than a revocable or living trust as some like to call it. The revocable trust is primarily a probate avoidance and (in some instances) a guardianship avoidance mechanism, with little if any tax advantages over a will with power of attorney. Second, in my view, the key to how to invest assets, or in what to invest them is largly dependent on what the Grantor set out as the trustee's duties. Certainly, though, the trustee in an irrevocable trust has much more of a fiduciary duty to non-grantor beneficiaries than in a living trust where tyupically the grantor IS a trustee.And thanks for your kind words. I'm gonna pass them on to my wife and see if she will show me some respect now.Wyatt
Yo, Wyatt.<<And thanks for your kind words. I'm gonna pass them on to my wife and see if she will show me some respect now.>>LOL. Sounds like your spouse recognizes your talents as much as mine. :-)Pixy
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