A trustee takes legal ownership of the assets held by a trust and assumes fiduciary responsibility for managing those assets and carrying out the purposes of the trust.

How does a trustee get paid?

The Trustee can pay themselves from the trust funds based on the terms of the trust or the state’s laws. Some trusts stipulate hourly or flat fees for trustee duties. Professional trustees can earn over $100 per hour, while corporate trustees make 1-2% of the trust’s assets as annual compensation.

Can my financial advisor be my trustee?

Trusted Advisors Attorneys, accountants and financial advisors often have unique relationships with their clients and may be suited to serve as trustee of a trust since they should understand you and your estate nearly as well as you do.

What is a financial trustee?

Executor & Trustee Guidelines. The trustee acts as the legal owner of trust assets, and is responsible for handling any of the assets held in trust, tax filings for the trust, and distributing the assets according to the terms of the trust. Both roles involve duties that are legally required.

Can a CPA serve as a trustee for a trust?

Often a client will ask his accountant to serve as a trustee. This kind of request indicates great trust in the accountant’s judgement; however, it carries with it serious responsibilities. Some of the following issues are specific to CPAs, but many also apply to anyone serving as a trustee.

What are the duties of a trustee in administering a trust?

Trustees bear a great personal responsibility in ensuring that the trust is handled properly. The authors detail the different types of trusts, their taxation, and the trustee’s responsibilities, providing both planning strategies and advice for administering trusts after they take effect.

What happens if there are too many trustees in a trust?

If an even number of trustees is selected, there should be a built-in mechanism for tie breaking. Occasionally some trustees are given extra votes to provide a limited mechanism for control. Trustees (and executors) are entitled to statutory fees, even if no such fee is stipulated in the trust documents.

How is a trustee chosen in a testamentary trust?

In a testamentary trust, a person other than the executor is occasionally chosen, conferring different rights and obligations to the executor and to the trustee. In some respects, the choice of trustee is a more important decision than choosing an executor, because once the estate is settled, the executor’s job is completed.