Trustees Guide to Asset Distribution

Have you ever stopped to consider what happens when you die? From gathering your assets, paying off debts, distributing your assets to your beneficiaries to all your business affairs, everything needs to be settled once you’re gone. So, who will fulfill all these actions? Here’s what you need to know!

If you’ve elected to include a trust as part of your estate planning, your trustee will be in charge of these affairs. They will handle all your assets as instructed by your estate plan.

Let’s take a closer look!

What Is Trust Distribution?

Some estate plans include placing your assets in a trust that a trustee will handle once you die. The payment of tangible assets is ensured by a trustee to more than one beneficiary. The trustee must carefully review the entire trust documents and carefully follow your instructions regarding your asset distribution. Failing to do so can land your trustee in legal trouble. Since legal languages widely vary from one state to another, you should consult with an estate planning attorney before choosing to create a trust.

What Does a Trustee Need to Do?

A trustee must perform the most common function to manage the distribution of assets to the trust’s beneficiaries. Generally, the trustee has the option to deny and approve any requests demanded by beneficiaries as they work with the exact terms of the trust. If any request violates the rules and terms of the trust, the trustee is legally obligated to deny the request. On the other hand, if a request falls within the terms of the trust, the trustee is legally bound to approve the request and distribute any assets connected to it.

Trustees have a fiduciary duty to distribute assets as the terms and conditions of the trust advise. It is indeed a daunting act with a great deal of responsibility. There are several things you need to consider when accepting requests from beneficiaries. This includes:

  • The reason why the beneficiary is requesting the distribution
  • The beneficiaries distribution history
  • Take a look at whether the beneficiary has other assets available so they can cover expenses
  • You must know what impact the distribution will cause on the trust that can affect other beneficiaries
  • The terms and conditions of the trust

What Happens When the Beneficiary Demands Illegal Distributions?

When a beneficiary asks for illegal distribution, or distribution that vioaltes the terms and conditions of the trust, legal action can be taken. Any request that goes against the truster’s requests or wishes should be denied. You can cHowever, even if the beneficiary still demands the same, it is necessary to involve the court in that matter. onsult the distributive provisions allocated in the documentaieneficiary nhy you cannot give the distribution requested. If the beneficiary continues to demands distributions

How Can You Handle Problematic Beneficiaries?

Being a trustee can be a stressful yet rewarding task. Whenever you work as a trustee, you run the risk of coming face to face with problematic beneficiaries. Due to the sensitive nature of trusts, beneficiaries can become demanding, argumentative, needy, and even at times, aggressive. Moreover, people may not understand your role as a trustee, and test your authority. Remember, it is your legal obligations to follow the terms and conditions of the trust. If problematic beneficiaries cannot be controlled, you must petition the court for assitance.

Contact Ensberg Law Group for Your Estate Planning Needs

When it comes to creating a trust fund, you need to be sure to pick the right trustees. Contact Ensberg Law Group to discuss your probate needs with a reliable Diamond Bar estate planning lawyer.


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