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topic of the month: Communication

Trustee Communication is Essential

One of the most common sources of conflict in trust administration isn’t money — it’s communication. Even when a trustee is handling assets perfectly, beneficiaries may grow anxious, frustrated, or suspicious if they don’t know what’s going on.

Good communication isn’t just a courtesy. In many states, trustees have a legal duty to keep beneficiaries reasonably informed about the trust and its administration. Clear, consistent communication builds trust, reduces misunderstandings, and helps prevent disputes before they start.

Keeping Beneficiaries Informed

This guide explains why communication matters, what information beneficiaries should receive, and practical tips for keeping everyone in the loop.

Frequently Asked Questions

What are my main duties as a trustee?

Your primary responsibility is to act in the best interests of the beneficiaries. This includes managing trust assets prudently, following the terms of the trust, keeping accurate records, and providing required accountings. You also must treat beneficiaries impartially and avoid conflicts of interest.

How do I handle disagreements between beneficiaries?

Your role is to stay neutral, follow the trust instructions, and keep thorough records of your decisions. Communication is key—provide regular updates and explain decisions. In some cases, mediation or court involvement may be necessary.

What happens if I want to resign as trustee?

Check the trust document first—it may outline the process. If not, state law usually requires you to give notice to the beneficiaries and possibly obtain court approval. You must also transfer all trust property and records to the new trustee.

Can I create my own estate planning documents?

Yes, but with caution. Basic forms can be a good starting point, especially for simple situations. However, mistakes or incomplete documents can cause major problems later. If your situation is complex—such as owning a business, having minor children, or needing tax planning—it’s best to consult a qualified estate planning attorney.

Can I be personally liable if something goes wrong?

Yes. If you mismanage trust assets, act outside your authority, or fail to follow the trust terms, you can be held personally responsible for losses. Keeping detailed records, seeking professional advice, and acting prudently can reduce this risk.

How often do I need to provide an accounting?

The trust document or state law will typically set the schedule. In many states, trustees must give beneficiaries an accounting at least annually, and also when a trust terminates or a trustee changes.

What’s the difference between a will and a trust?

A will is a legal document that directs how your assets should be distributed after your death, but it must go through probate—a public, court-supervised process. A trust holds your assets during your lifetime and can distribute them after your death without probate, often providing more privacy, control, and efficiency.

Can I get paid for serving as Trustee?

Yes. Trustees are generally entitled to “reasonable compensation” for their services, which may be set by the trust document or state law. The exact amount can depend on the complexity of the trust and the work required.

Do I need a lawyer or accountant to help me?

Often, yes. While simple trusts may be manageable on your own, many trustees hire professionals to handle legal issues, tax filings, investment management, and other complex matters. The trust can usually pay for these services.

Do I need an estate plan if I don’t have a lot of assets?

Yes. Estate planning isn’t just about wealth—it’s about control and protection. Even with modest assets, you can use tools like powers of attorney, healthcare directives, and simple wills or trusts to make sure your wishes are honored and your loved ones are cared for.

Plan, Protect, and Pass It On

serving as trustee? planning your estate? you've come to the right place.

topic of the month: Communication

Trustee Communication is Essential

Keeping Beneficiaries Informed

Most Recent Articles

Forms and guides coming soon!

Frequently Asked Questions

Plan, Protect, and Pass It On

serving as trustee? planning your estate? you've come to the right place.

topic of the month: Communication

Trustee Communication is Essential

Keeping Beneficiaries Informed

Most Recent Articles

Forms and guides coming soon!

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Frequently Asked Questions

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