Assistant at Law

Do trustees have to tell beneficiaries about the amount of assets in a trust? Assistant at Law Assistant at  Parklin Law First of all, there are several different types of trusts, and this inquiry usually relates to a Living Trust. In general, you may not have to disclose the amount of assets in your trust to anyone outside of your Living Trust—and even with beneficiaries who are named in the trust, you only have to tell them if they ask. A trustee (a person who controls and manages a trust) can choose whether to tell anyone at all about the amount of assets in the trust. If you do choose to disclose this information, you will need to provide it on an annual basis or when there is a "triggering event" (for example, when someone asks for a copy of your trust). When you use an attorney to create your Living Trust, he or she will draft it specifically for your situation and will be able to help you decide whether or not to disclose any information regarding the amount or locatio...

What are the disadvantages of being a trustee? Assistant at Law Assistant at  Parklin Law Being a trustee is an important, but also challenging role. Actually, for some people, it's a chore—it involves a lot of work, and the checks don't come with raises. But there are other reasons that becoming a trustee might not be the best idea for everyone. The first major disadvantage is that it requires you to take on more responsibility in terms of your finances. While banks would not expect one person to manage all of their money by themselves, this is what being a trustee entails. Being a trustee means you can tell no one else about your financial situation. You cannot tell anyone when you deposited money or how much money you have in your bank account. The only exception to this is if you are both being trustees together for the same person—you can then talk to one another about what payments the person will receive. You also have to make sure that the trust-maker's money is sep...

What are the benefits of setting up a trust? Assistant at Law Assistant at  Parklin Law A trust is a legal entity that holds assets for the benefit of one or more beneficiaries and can be used for a variety of situations, such as protecting the assets from creditors of the beneficiary. Setting up a trust can help you preserve your assets and provide significant tax benefits, especially if you're concerned about dying without a will. Although trusts are fairly complex, they're designed to make your life easier after death, by helping family members avoid probate when they inherit your money—which actually makes them cheaper than drawing up a will in many cases. The downside is that it takes time and money to set up a trust, so you need to consider whether it would be worth the effort. While setting up a trust may sound complicated and like something only the rich can do, it's actually fairly easy and accessible for those who have accumulated a bit of wealth. Here are some of...

When can a beneficiary sue a trustee? Assistant at Law Assistant at  Parklin Law When a trustee neglects or mismanages a trust, it can ruin their beneficiaries' financial security. But what can the beneficiary do about it? Can they sue the trustee for damages? Is there a statute of limitations on filing the lawsuit? A common misconception is that beneficiaries have no legal recourse when an estate is mismanaged by a trustee. However, there are two ways that a beneficiary may be able to take action against an estate's trustee (or co-trustee). The first way is if the trust gives the beneficiary explicit authority to take legal action against the trustee. Some trusts give the beneficiary this explicit authority by giving the beneficiary power to remove and replace trustees. Other trusts give explicit authority to beneficiaries to sue a trustee in violation of his or her fiduciary duty. The second way is if there is a fiduciary duty between the parties. Some states have establishe...