A Trustee’s Duties to the Beneficiaries of a Trust

What are my duties in providing information to a beneficiary?

A friend or a relative with an estate can choose any person of sound mind to be the trustee of that estate. Being a trustee comes with many responsibilities and duties, as well as the responsibility to uphold that friend or relative’s trust and do whatever is best for their estate.

A trustee is responsible for managing money, finances, and other assets as part of a trust set aside for various beneficiaries. The trustee then uses that money or those assets in a way that is most beneficial for the listed beneficiaries while also following certain legal principles. As such, the trustee has certain responsibilities to provide information regarding the trust to all of the different beneficiaries.

What Are a Trustee’s Duties to the Beneficiaries of a Trust?

If you have been appointed a trustee to someone’s estate or a trust set aside for certain beneficiaries, then you would have several duties to those beneficiaries. One such duty is providing the beneficiaries with information regarding the trust and keeping them informed on all matters relevant to the trust.

If a beneficiary asks you, as the trustee, for any information regarding the trust amount, it is your duty to provide them with that information. It is also your duty to clarify any questions or concerns the beneficiaries might have regarding any investments you make using the money or assets in the trust or how you manage the trust daily.

Of course, there are certain instances in which you, as a trustee, are legally obligated to answer the questions beneficiaries may have regarding the trust. These instances are such where the beneficiary has a valid reason for asking for information about the trust, such as if they were trying to protect their own financial interests and ensure that you, the trustee, were not using the trust funds for the right reasons or were being unlawful with how you handled the trust.

Whenever a beneficiary extends a request for information regarding the trust, you can consider whether or not the request is valid and provide the information and relevant documentation to the beneficiaries depending on their reasoning behind the requests. If you choose not to provide the information requested, you should expect that the beneficiaries might respond with a legal dispute.

Are You in Need of Estate Planning in Denver, Colorado? Get in Touch with Evans Case!

Evans Case is a Denver-based law firm that focuses on estate planning and has a team of experienced attorneys that specialize in estate planning, wills, and trusts. When it comes to trusts, our team can help you with revocable living trusts, irrevocable life insurance, trust administration, charitable remainder trusts, and more.

If you are looking for a trust attorney or have any more questions relating to trusts, the duties of a trustee, or estate planning in general, you can get in touch with us at Evans Case. Give us a call at 303.757.8300 or contact us on our website. You can schedule an appointment or a consultation with our experienced and qualified estate planning attorneys.