Under the Trust Law, you owe a duty to the beneficiaries to make them aware of the existence of the Trust and to keep them reasonably informed of the Trust and its administration. State law also requires that you provide the beneficiaries with certain information on reasonable request and that you give a full accounting and report of all trust transactions not less often than annually or when the trust terminates. Regardless of whether you intend to make a formal accounting to beneficiaries, you must keep careful records of all trust transactions. In fact, if you do not prepare a formal accounting, you should probably keep these records forever, because there is no statute of limitations and your liability exposure will continue indefinitely. If the trust allows, you will be entitled to reasonable compensation for your services as Trustee. In determining reasonableness, factors such as the amount of time spent in trust administration and the size of the trust estate may be considered. You do not have to accept a trustee’s fee. If you do, you should know that it is reportable as taxable income. The successor trustee will be responsible for a variety of tax filings which can include income tax returns for the deceased person and the estate, estate tax returns, both federal and California. THIS IS NOT MY ATTORNEY...INFORMATION ONLY. hoffmanandhoffman/estate-planning/trust-administration/
Posted on: Sun, 21 Sep 2014 13:35:54 +0000
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